Assertion (A): Human capital is a stock, while human capital formation is a flow.
Reason (R): Human capital formation adds to the stock of skills over a period of time.

Both A and R are true, and R is the correct explanation of A.Correct answerYour answerBoth A and R are true, but R is not the correct explanation of A.Correct answerYour answerA is true, but R is false.Correct answerYour answerA is false, but R is true.Correct answerYour answer

Show the answer and explanation

CorrectNot quiteAnswer A

Correct answer: A

A stock is measured at a point of time; a flow over a period. Formation is the flow that adds to the stock.
R explains A.

Concept: Stock and flow
Typical timeTypical: 70 s
Your timeYours: —

The rule this testsHuman capital

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Ten questions from Human Capital Formation, at your own pace.

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Ten questions from Human Capital Formation, at your own pace.

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Assertion (A): Human capital is a stock, while human capital formation is a flow.Reason (R): Human capital formation adds to the stock of skills over a period of time.

Explanation

Assertion (A): Human capital is a stock, while human capital formation is a flow.
Reason (R): Human capital formation adds to the stock of skills over a period of time.