Question : Statement 1: Investment in human capital reduces economic growth.
Statement 2: Investment in human capital promotes economic growth and development.
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 is false because investment in human capital is widely recognized as a driver of economic growth. By developing the knowledge, skills, and abilities of individuals, human capital formation enhances productivity, innovation, and overall economic performance. A skilled and educated workforce is more likely to contribute to economic growth through increased efficiency, technological advancements, and entrepreneurship.
Statement 2 is true as investment in human capital promotes economic growth and development. When resources are allocated towards education, training, and skill development, individuals become more productive and capable of contributing to the economy. Human capital enhances the competitiveness of a nation, attracts investments, and fosters long-term sustainable development.
