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.
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 true, and statement 2 is true.
Solution : The correct answer is (a) Statement 1 is true, and statement 2 is true.
Statement 1 is true. Investment in education is indeed a crucial factor in human capital formation. Education equips individuals with knowledge, skills, and abilities, which are essential components of human capital. Through education, individuals acquire specialized knowledge, develop critical thinking skills, and enhance their overall capabilities.
Statement 2 is also true. While education is a significant contributor to human capital formation, it is not the only factor. Investment in healthcare and nutrition is equally important. Good health and proper nutrition are fundamental for individuals to realize their full potential and effectively utilize their human capital. Access to healthcare services and adequate nutrition positively impact individuals' well-being and ability to participate fully in economic and social activities.
Therefore, both statement 1 and statement 2 are true.
