Question : Assertion: Human capital formation plays a crucial role in reducing income inequality.
Reason: Education and skill development enable individuals to access better job opportunities and higher income levels.
Option 1: Both assertion and reason are true, and the reason is the correct explanation of the assertion.
Option 2: Both assertion and reason are true, but the reason is not the correct explanation of the assertion.
Option 3: Assertion is true, but the reason is false.
Option 4: Assertion is false, but the reason is true.
Correct Answer: Both assertion and reason are true, and the reason is the correct explanation of the assertion.
Solution : The correct answer is (a) Both assertion and reason are true, and the reason is the correct explanation of the assertion.
The assertion states that human capital formation plays a crucial role in reducing income inequality. Human capital formation refers to the development of knowledge, skills, and abilities of individuals within a society.
The reason provided is that education and skill development enable individuals to access better job opportunities and higher income levels. This is true because individuals with higher levels of education and skills are more likely to secure higher-paying jobs and have greater income-earning potential. By investing in education and skill development, societies can provide individuals with the tools and opportunities to improve their economic prospects and reduce income inequality.
Therefore, both the assertion and the reason are true, and the reason is the correct explanation of the assertion.
