Correct Answer: Both assertion and reason are true, and the reason is the correct explanation of the assertion.

Solution : The correct option is (a) Both assertion and reason are true, and the reason is the correct explanation of the assertion.

The assertion that education enhances the earning potential of individuals is true. Education plays a significant role in developing knowledge, skills, and capabilities that are valuable in the labor market. Individuals who acquire higher levels of education often have a broader range of job opportunities and are more likely to possess specialized skills that are in demand. This increased human capital, resulting from education, can lead to higher wages and income potential.

The reason provided states that higher educational qualifications are correlated with higher wages, which is a correct explanation of the assertion. Numerous studies and empirical evidence show a strong positive relationship between education levels and earnings. Generally, individuals with higher educational qualifications, such as advanced degrees or specialized training, tend to earn higher wages compared to those with lower levels of education. This correlation reflects the value that employers place on the knowledge and skills acquired through education, which often translates into higher wages.

Therefore, both the assertion that education enhances the earning potential of individuals and the reason that higher educational qualifications are correlated with higher wages are true, and the reason is the correct explanation of the assertion.