CBSE 2021 Class 12 Economics Term 1 Paper

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Question : 38
Total: 60
Read the following statements - Assertion (A) and Reason (R), choose the correct alternative.
Assertion (A): In developing countries, growth of human capital has been faster than the growth of per capita real income,
Reason (R): Empirical evidence to prove that increase in human capital causes economic growth is rather nebulous.
Solution:  
(b) Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation of Assertion (A).
Explanation: There is a significant link between human capital and economic growth. Human capital has an impact on economic growth and can aid in the development of an economy by increasing people's knowledge and skills. Human capital growth has been quicker in developing countries, but per capita income growth has been slower. Both assertion and reason are true and reason is not the correct explanation of assertion.
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