Economics · Economic Development - Human Capital
Given below are two statements: one is labelled as Assertion (A) and the other is labelled as Reason (R). Assertion (A): With a 10% rise in the average income of a household, there will exactly be a 50% rise in the investment in health and education of children. Reason (R): Investment in the health and education of children will raise human capital, which in turn raises human capability and economic productivity. In the light of the above statements, choose the most appropriate answer from the options given below:
- 1(A) is not correct but (R) is correct✓
- 2(A) is correct but (R) is not correct
- 3Both (A) and (R) are correct but (R) is not the correct explanation of (A)
- 4Both (A) and (R) are correct and (R) is the correct explanation of (A)
Correct answer
(A) is not correct but (R) is correct
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