Question : Statement 1: Human capital formation leads to an increase in unemployment rates.
Statement 2: Human capital formation reduces unemployment rates.
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.
Human capital formation, which refers to the development of knowledge, skills, and abilities in individuals, is generally associated with a reduction in unemployment rates. As individuals acquire education, training, and skills, they become more employable and are better equipped to meet the demands of the job market. Therefore, human capital formation tends to reduce unemployment rates rather than increase them.
Question : Statement 1: Human capital formation leads to a decrease in technological advancements.
Statement 2: Human capital formation fuels technological advancements and fosters innovation.
Question : Statement 1: Human capital formation is an expensive process that does not yield significant returns.
Statement 2: Human capital formation is a worthwhile investment that yields long-term economic and social benefits.
Question : Statement 1: Human capital formation is a one-time process that occurs during early childhood.
Statement 2: Human capital formation is a lifelong process that continues throughout an individual's life.
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.
Question : Statement 1: Investment in education is the only factor that contributes to human capital formation.
Statement 2: Investment in healthcare and nutrition also plays a significant role in human capital formation.
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