Question : Statement 1: Human capital formation hinders economic productivity.

Statement 2: Human capital formation enhances economic productivity through the development of skilled and knowledgeable individuals.

Option 1: Statement 1 is true, and statement 2 is true.

Option 2: Statement 1 is true, but statement 2 is false.

Option 3: Statement 1 is false, but statement 2 is true.

Option 4: Statement 1 is false, and statement 2 is false.

Correct Answer: Statement 1 is false, but statement 2 is true.

Solution : The correct option is (c) Statement 1 is false, but statement 2 is true.

Statement 1 suggests that human capital formation hinders economic productivity. This statement is false. Human capital formation, which refers to the development of knowledge, skills, and abilities in individuals, actually enhances economic productivity. When individuals acquire and enhance their skills and knowledge through education, training, and experience, they become more productive contributors to the economy. Skilled and knowledgeable individuals are better equipped to innovate, problem-solve, and adapt to changing circumstances, leading to increased productivity in various sectors of the economy.

Statement 2 correctly states that human capital formation enhances economic productivity through the development of skilled and knowledgeable individuals. By investing in education, training, and skill development programs, societies can improve the quality and productivity of their workforce. Skilled individuals can perform tasks more efficiently, generate new ideas, and contribute to technological advancements, all of which lead to higher levels of economic productivity.

Therefore, statement 1 is false, but statement 2 is true.