CBSE 2023 Class 12 Economics Outside Delhi Set 1

Question : 29

Total: 52

Read the following statements - Assertion (A) and Reason (R).
Choose one of the correct alternatives given below:
Assertion (A) : Human capital is not traded in the market; however its services are traded.
Reason (R) : Human capital is intangible in nature.

Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A).
Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation of Assertion (A).
Assertion (A) is true, but Reason (R) is false.
Assertion (A) is false, but Reason (R) is true.

Solution:

(a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A).
Explanation: Human capital means stock of educated, skilled, trained and experienced labour at a given point of time in a country. It is intangible in nature. So, Human capital itself is not traded in the market but its services can be traded. For e.g., services of doctor can be purchased in the market. But a doctor himself is not sold in the market.

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