Question : Statement 1: The government has no role to play in human capital formation.

Statement 2: The government plays a crucial role in facilitating human capital formation through policies and investments.

 

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 answer is (c) Statement 1 is false, but statement 2 is true.

Statement 1 is false. The government plays a significant role in human capital formation through various policies and investments. It is responsible for creating an enabling environment that promotes access to education, healthcare, and skill development opportunities. Governments often establish and support educational institutions, implement policies to ensure equal opportunities for all individuals, provide funding for research and development, and invest in healthcare infrastructure—all of which contribute to human capital formation.

Statement 2 is true. The government's role in facilitating human capital formation is crucial. Through policies and investments, governments can ensure the availability and accessibility of quality education, healthcare services, vocational training programs, and other resources necessary for individuals to develop their knowledge, skills, and abilities. By creating an enabling environment and addressing barriers to human capital development, governments can promote economic growth, social progress, and overall well-being.