Question : Statement 1: Human capital formation is a passive process that relies solely on individuals' efforts.

Statement 2: Human capital formation requires proactive investments and interventions from governments and institutions.

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 is a passive process that relies solely on individuals' efforts. This statement is false. Human capital formation requires proactive investments and interventions from governments, institutions, and other stakeholders. While individuals play a crucial role in their own skill development and knowledge acquisition, the process of human capital formation is not solely dependent on individual efforts. It requires supportive environments, educational opportunities, vocational training programs, and policies that promote access to education and skill development.

Statement 2 correctly states that human capital formation requires proactive investments and interventions from governments and institutions. These entities play a vital role in creating an enabling environment for human capital development. They allocate resources, design educational and training programs, establish policies, and provide support systems to foster the acquisition of knowledge, skills, and abilities. The involvement of governments and institutions is necessary to ensure equitable access to education, skill development opportunities, and the overall development of human capital within a society.

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