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 government policies play a crucial role in promoting human capital formation is true. Human capital formation refers to the process of acquiring and developing knowledge, skills, and capabilities in individuals. Government policies have a significant influence on the availability, accessibility, and quality of education and healthcare services, which are key components of human capital formation. Through various interventions and investments, governments can create an enabling environment that supports education and healthcare, leading to the development of human capital in a society.

The reason provided states that government interventions can improve access to education and healthcare services, which is a correct explanation of the assertion. Government policies can include measures such as funding for educational institutions, scholarships and grants, infrastructure development, curriculum development, healthcare subsidies, and public health initiatives. These interventions aim to reduce barriers to education and healthcare, improve their affordability and quality, and ensure equitable access for all individuals. By implementing such policies, governments can enhance human capital formation by providing individuals with the necessary resources and opportunities to acquire education and healthcare services.

Therefore, both the assertion that government policies play a crucial role in promoting human capital formation and the reason that government interventions can improve access to education and healthcare services are true, and the reason is the correct explanation of the assertion.