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 is false because human capital formation is not solely the responsibility of the education system. While education plays a significant role in developing human capital, it is not the only factor involved. Human capital formation is a multifaceted process that requires the collective efforts of various stakeholders, including the education system, government, businesses, and individuals.

Statement 2 is true as human capital formation involves the collaborative efforts of multiple entities. The education system provides formal education and training, but the government also plays a crucial role in formulating policies, providing funding, and creating an enabling environment for human capital development. Businesses contribute by providing opportunities for skill acquisition and employment, while individuals actively engage in learning and skill development throughout their lives. The collective efforts of these stakeholders contribute to the formation and enhancement of human capital.