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 an expensive process that does not yield significant returns. This statement is false. While there are costs associated with investing in human capital, such as education, training, and skill development programs, the returns on these investments are typically substantial. Human capital formation leads to a more skilled and productive workforce, which can contribute to economic growth, innovation, and improved social outcomes. The development of human capital is often considered a worthwhile investment as it yields long-term benefits for individuals, communities, and societies as a whole.

Statement 2 correctly states that human capital formation is a worthwhile investment that yields long-term economic and social benefits. By investing in education, training, and skill development, individuals can acquire valuable knowledge and skills that enhance their employability, income potential, and overall quality of life. Additionally, societies that prioritize human capital development tend to experience higher levels of economic growth, reduced poverty, improved health and well-being, and increased social cohesion.

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