Given below are two statements, one is labelled asAssertion (A) :and the other as Reason (R).Assertion (A):Investment in human capital yields returns in the future.Reason (R):Education and health make people more productive.

1. A

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

   Both true, R not explaining A. Education and health are exactly why human-capital investment pays later.

2. B

   (A) is false, but (R) is true

   (A) false. Human capital does yield future returns.

3. C

   (A) is true, but (R) is false

   (R) false. Education and health do raise productivity.

4. D

   Both (A) and (R) are true and (R) is the correct explanation of (A)

   Both true and R explains A. Spending on education and health raises productivity, which is the future return on human capital.

Summary. Official key is (d). Human-capital investment pays later because education and health make people more productive. Also note: Schultz / Becker — Human capital as an investment, not a cost; Education + health — Two standard human-capital limbs in NCERT; Physical capital — Machines; human capital is the worker; Returns lag — Schooling and health show up in later earnings.