Assertion [A] : Higher knowledge increases productivity of the labour force. Reason [R] : Higher expenditure on education yields higher knowledge.
Both [A] and [R] are true but [R] is not the correct explanation of [A]
Human capital theory holds that knowledge and skills raise the efficiency of workers, so a better-educated labour force produces more output per worker. The assertion is true.
The reason is also true: greater spending on education (schools, teachers, training) expands access and quality, which raises the stock of knowledge in society.
However, the reason only explains how higher knowledge is created; it does not explain why higher knowledge increases labour productivity, which is what the assertion claims.
So both statements are true, but the reason is not the correct explanation of the assertion.
Hence, Both [A] and [R] are true but [R] is not the correct explanation of [A].
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(a) India ranks 131 in United Nation's Human Development Index, 2020.
(b) Life expectancy of Indians at birth in 2019 was 72.6 years while Bangladesh had life expectancy of 69.7 years
(c) Switzerland ranks 1st in United Nation's Human Development Index, 2020.
