Correct Answer: Both assertion and reason are true, and the reason is the correct explanation of the assertion.

Solution : The correct option is (a) Both assertion and reason are true, and the reason is the correct explanation of the assertion.

The assertion that investment in quality teachers improves human capital formation is true. Teachers are a crucial component of the education system and play a critical role in imparting knowledge and skills to students. Quality teachers have the ability to inspire, motivate, and engage students in the learning process. They possess subject matter expertise and pedagogical skills to effectively convey information, facilitate understanding, and promote critical thinking. Quality teachers create a conducive learning environment, provide individualized support, and foster the development of students' cognitive and non-cognitive skills. They are instrumental in shaping students' intellectual abilities, social and emotional development, and overall educational outcomes.

The reason provided states that teachers play a critical role in imparting knowledge and skills to students, which is the correct explanation of the assertion. Teachers are the primary agents of education and have a direct impact on students' learning and human capital formation. They facilitate the acquisition of knowledge, promote skill development, and nurture students' intellectual growth. The quality of teachers significantly influences the effectiveness of the education system and determines the extent to which human capital is formed. Investment in recruiting, training, and retaining quality teachers is essential to ensure that students receive a high-quality education and develop the necessary skills for their personal and professional success.

Hence, both the assertion that investment in quality teachers improves human capital formation and the reason that teachers play a critical role in imparting knowledge and skills to students are true, and the reason is the correct explanation of the assertion.