CBSE Class 11 Economics Human Capital Formation In India MCQs

Question : Which of the following is not an indicator of education level?
a) Years of schooling
b) Life expectancy
c) Teacher-pupil ratio
d) Enrollment rate

Answer :   B

Question :  Which programme started in 1994
a) District Primary Education Programme
b) Kasturba Gandhi Balika Vidyalaya
c) Sarva Siksha Abhiyan
d) Mid-day meal

Answer :   A

Question :  What percent of GDP was invested in education in the year 1952?
a) 7.92 percent
b) 11.7 percent
c) 0.64 percent
d) 3.31 percent

Answer :   C

Question :  Human capital consists of
a) Enterpreneurs
b) Both workers and entrepreneurs
c) Workers
d) Entire population

Answer :   D

Question :  GER stands for
a) General Enrolment Ratio
b) Gross Enrolment Ratio
c) General Estimated Ratio
d) Gross Education Ratio

Answer :   B

Question :  Human capital can be increased by incurring expenditure on
a) All of these
b) Improvement in technology
c) Increase in GDP
d) Improvement of health

Answer :   D

Question :  SSA started in
a) 2005
b) 2000
c) 2006
d) 2004

Answer :   B

Question :  Human Development refers to
a) None
b) Both
c) Development of the individuals by acquiring good education
d) Consists of skills as used in the process of production

Answer :   C

Question :  How much India spend on education?
a) 2% Of GDP
b) 4% of GDP
c) 6% of GDP
d) 5% Of GDP

Answer :   B

Question .What percent of GDP was invested in education in the year 1952?
a) 7.92 percent
b) 11.7 percent
c) 0.64 percent
d) 3.31 percent

Answer :   C

Question :  The most important indicator of the status of education of a country is the
a) Death rate
b) Population rate
c) Birth rate
d) Literacy rate

Answer :   D

Question :  Human capital is similar to physical capital because
a) Both
b) none
c) They are factors of production
d) Raise nation’s ability to produce goods and services

Answer:   A

Question : The objective of midday meal scheme is __________
a) to boost universalisation of primary education
b) to boost the nutritional status of children in schools
c) to increase enrolment attendance and retention, and also improving the nutritional status of children in school
d) to boost universalisation of upper primary level of education

Answer:   C

Question :  Which of the following is not an indicator of education level?
a) Years of schooling
b) Life expectancy
c) Teacher-pupil ratio
d) Enrollment rate

Answer :   B

Question :  The most important indicator of education status of a country is the
a) Literacy rate
b) Death rate
c) Population rate
d) Birth rate

Answer:   A

Question :  Educational attainment is measured by the two-third weighted average of the _____and one-third weight ______
a) literacy rate, mean years of primary schooling
b) adult literacy rate, mean years of secondary schooling
c) adult gross literacy rate, mean years of schooling
d) adult literacy rate, mean years of schooling

Answer:   C

Question : Which of the following is not the role of on-the-job training?
a) Eradicates inequality
b) Encourages innovation
c) Promotes modern methods
d) Enhances productivity

Answer :   D

Question :  The government has levied –% of education cess on all union taxes?
a) 3%
b) 4%
c) 2%
d) 10%

Answer. C

Question :   In which state the per capita expenditure on elementary education is highest?
a) Maharashtra
b) Kerala
c) Karnataka
d) Himachal Pradesh

Answer :   D

Question :  Machines and buildings are
a) Human capital
b) None of these
c) Physical capital
d) Natural capital

Answer :   B

Question :  Which of the following is not the feature of India Vision 2020 Report
a) 90% of literacy in India
b) If we double the investments in education it will increase the country’s GDP per capita by four times
c) 100 % enrolment of all children of age group 6-14 years
d) Importance of technical education

Answer:   A

Question :  Literacy refers to
a) All urban people
b) All educated people
c) All rural educated people
d) The ability to read and write

Answer :   D

Question :  If ____ capital represents production capacity of a nation, _____ capital is the cause that designs machines.
a) Human, Physical
b) Financial, Human
c) Physical, Human
d) Physical, Financial

Answer :   C

Question :  It controls and guides higher education
a) IGNOU
b) None
c) NCERT
d) UGC

Answer :   D

Question :  Secondary level education for age group
a) 13-15
b) 18-40
c) 15-18
d) 14-18

Answer :   D

Question :  What is the reason for rural-urban migration in India?
a) Marriage
b) Disease
c) Unemployment
d) None

Answer :   C

Question :  Navodaya Vidyalaya started in
a) 1988-89
b) 1985-86
c) 1989-90
d) 1986-1987

Answer :   B

Question :  Which of the following is not the role of on-the-job training?
a) Eradicates inequality
b) Encourages innovation
c) Promotes modern methods
d) Enhances productivity

Answer :   D

Question :  In how many stages of education are there in India
a) 1
b) 2
c) 4
d) 3.0

Answer :   D

Question :  Which Five Year Plan stressed upon the importance of human capital
a) 7th
b) 8th
c) 6th
d) 5th

Answer :   A

Question :  In 1950-51 India literacy rate was
a) 0.16
b) 0.12
c) 0.15
d) 0.18

Answer :   D

Question :  Which one of the following is a reason for poor human capital formation in India?
a) Brain drain
b) Insufficient resources
c) High growth of population
d) All of these

Answer :   D

Question :   considers education & health as a means to increase labour productivity?
a) Human capital
b) Human development
c) Physical capital
d) A&B Both

Answer :   A

Question :  How do human capital formation contributes towards economic growth?
a) By stimulating innovations & inventions
b) Human capital formation is inversely related with economic growth 
c) By enabling human resource to understand changes in scientific advancement
d) Both A & C

Answer :   D

Question :  Which of the following are indicators of HDI are
a) Educational attainment
b) All of these
c) Standard of living
d) Longevity

Answer :   B

ASSERTION AND REASON BASED QUESTIONS

Question :  Assertion (A) : Literacy is a powerful instrument of socio-economic change.
Reasoning (R) : Empowerment of women helps to reduce gender disparity.
Options : 1) (A) is True, but (R) is False
2) (A) is False, but (R) is True
3) Both (A) and (R) are True and (R) is the correct explanation of (A)
4) Both (A) and (R) are True but (R) is not the correct explanation of (A)
Answer : D

Question :  Read the following statements - Assertion (A) and Reason ( R) Assertion
(A) : Small scale industries ensure a more equitable distribution of national income and wealth.
Reason (R) : The ownership of small scale industries is more wide spread than the ownership of large scale industries.
Select the correct alternative from the following:
a) Both Assertion (A) and Reason ( R) are true.
b) Both Assertion (A) and Reason (R) are false.
c) Assertion (A) is true but reason (R) is false.
d) Assertion (A) is false but reason (R) is true.
Answer : A

Question :  Assertion (A) : India become self-reliant in the agricultural production after introducing green revolution.
Reason(R) : shortage of food grains due to drought and lack of irrigation facilities in the early 1960’s.
a) Both assertion(A) and reason(R) are true and reasons (R) is the correct explanation of assertion (A) .
b) Both assertion and reason are true and reason (R) is not the correct explanation of assertion(A) .
c) Assertion (A) is true but reason (R) is false.
d) Assertion (A) is false but reason (R) is true.
Answer : B

Question :  Assertion (A) : The major policy initiatives i.e. land reforms and green revolution helped India to become self-sufficient in food grains production. Reason (R) : The proportion of people depending on agriculture did not decline as expected Alternatives:
(a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A) .
(b) Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation of Assertion (A) .
(c) Assertion (A) is true but Reason (R) is false.
(d) Assertion (A) is false but Reason (R) is true.
Answer : B

Question :  Assertion (A) : India became an exporter of primary products and an importer of finished consumer and capital goods produced in Britain. Reason (R) : Restrictive policies of commodity production, trade and tariff pursued by the colonial government adversely affected the structure, composition and volume of India’s foreign trade.
(a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A) .
(b) Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation of Assertion (A) .
(c) Assertion (A) is true but Reason (R) is false.
(d) Assertion (A) is false but Reason (R) is true.
Answer : A

Question :  Assertion (A) : Indian economy is predominantly rural economy
Reasoning (R) : 1) As per 2011 census, the country's rural population is almost 83.25 crore (68.8% of total population)
Options : (A) is True but (R) is False
2) (A) is False but (R) is True
3) Both (A) and (R) are True and (R) is the correct of A
4) Both (A) and (R) are True but (R) is not the correct explanation of (A)
Answer : C

CASE STUDY BASED QUESTIONS

CASE STUDY -1

The first ever Human Development Report (2001) of India has been released. It focuses on the vital-facts related to bureaucratic controls and poor governance of the country. The report was prepared by the planning Commission under the guidance of its Deputy Chairman, Mr. K.C. Pant. This 297-page document was released on April 23, 2002 and submitted to the Prime Minister. The report states that from 1983 to 1993-94, the Human Development Index (HDI) improved by nearly 2.6 per cent annum and by over 3 per annum during the period 1993-2001. Rural and urban areas have shown signs of improvement, according to the report.
Kerala, Punjab, Tamil Nadu, Maharashtra and Haryana have good HDIs. But states like Bihar, Uttar Pradesh, Mandhya Pradesh, Rajasthan and Orissa have HDIs close to nearly one-half to that to Kerala. Funds must be distributed efficiently and effectively so that human development processes do not suffer according to the report. India’s growth in terms of HDI has shown dismal trends during the recent past. Lack of resources, communal feelings and illiteracy are the chief causes of decay of the average Indian. Further, politicians, bureaucrats and other elements of the administration exploit the masses, executives, and business houses. The economic and political systems need serious transformations. The socio-cultural fabric of the nation cannot be weaved again because of religious compulsions. Ironically, we believe in religion so that our passage into the next world could be smooth and sans agonies. But we are least worried about our courses of action (and their outcomes) in this world. Religion often forces us to dominate other communities and sects. We attack them at opportune moments and face reprisals from them. This vicious cycle has been going on in India for the past 3,000 years.In order to develop the quality of life of Indians, the administration must become honest, efficient, productive and agile. Plant workers must increase productivity and eschew violence and strikes. Businessmen must conduct their business operations with honesty; they never do so. Further,political parties must guide the electorate and also, the masses towards prosperity and not chaos. Our psyche has to be changed; a change of government cannot lead us to a new era sans corruption and poor governance. Economic growth is linked to social growth, moral awareness, health and education. Every industrialist must work for the benefit of his or her nation. We have least interest in our nation and that is why, we are not receiving anything from her.The targeted rate of growth (of GDP) for the Tenth Plan is 8 per cent. However, the GDP growth rate during the Ninth Plan was a meagre 5.4 per cent. During the Eighth Plan, this rate was 6.7 per cent. How can we ensure consistent human development on a national scale if our results always fall short of targets. Our economy should grow at the rate of 7-8 percent. During 2001-02, it grew at the rate of 5.4 per cent.

Question : When was fist report on HRD was published.
a. In 1998
b. In 2000
c. In 2001
d. In 2005
Answer : C

Question : India’s HDI rank was too low because of
a. Poor literacy rate.
b. Poor education facilities.
c. Poor health services.
d. All of the above.
Answer : D

Question : What was the target for GDP Growth during 10th five year plan ?
a. 5%
b. 7%
c. 8%
d. 10%
Answer : C

Question : Which state is lag in good HDI according to this report.
a. Punjab.
b. Kerala.
c. Bihar
d. Tamilnadu.
Answer : C

Question : Which is not related with human capital formation.
a. Education.
b. Health.
c. Skill.
d. Internet.
Answer : D

CASE STUDY - 2

Read the passage carefully and answer the questions that follows
There is considerable evidence that some consumers are willing to pay more for green goods. To produce green goods we need not to use skill and human resources. Green goods are goods that are manufactured in an environmentally friendly way (e.g. wood products from sustainable forests, electricity produced from wind power) without a direct impact on a consumer. These are referred to as impure Public goods - a package of Private good and Public good. Why consumers are willing to pay more for these goods is complex. Whatever the reason, it is clear some consumers are willing to pay for green actions that do not benefit them directly. One example of green goods is 'green electricity'. Green power is simply electricity produced using renewable sources of energy. Of course, electricity itself is completely indistinguishable from non-green electricity. There are two ways in which consumers may buy green electricity; either by buying it directly or by contributing to the cost of building green electricity capacity. Consumers are clearly willing to spend more for green electricity and their preference for green production is indicated by the recent rise in popularity of retail carbon offsets. Offsets of emissions have long been used by firms to buy and sell the obligation to reduce emissions. In the USA, new emitters setting up a business in an urban area have to 'offset' their emission additions by finding (and paying) existing firms to reduce their emissions. In recent years, firms have used offsets to effectively reduce their emissions in order to provide a green image, particularly in the case of carbon emissions. The purchase of offsets by consumers is different when consumers buy offsets. They are making a purely voluntary contribution to the environment. Retail offsets are a way in which consumers can produce a green product from a brown product. For example, one can make his part of the flight carbon neutral by paying someone else to reduce his or her carbon emission. This is formalized in an offset market whereby sellers of offsets reduce emissions and then sell these 'reductions'.

Question : Green Electricity means
a) La zlectricity produced from renewable sources of energy
b) Electricity from Thermal plants
c) Electricity from Gas-powered plants
d) Hydro-power
Answer : A

Question : Impure Public goods are
a) Private goods
b) Public goods
c) A package of Public and Private goods
d) Harmful goods for the society
Answer : C

Question : Offset of emissions are used
a) To reduce emissions
b) To provide green image
c) For emission addition
d) To satisfy consumer preferences
Choose the correct answer from the options given below:
1. A, B and C only
2. A, C and D only
3. A, B and D only
4. B, C and D only
Answer : C

Question : An example of green good is
e) White paper
f) Wind power
g) Forest product
h) Solar energy
Choose the correct answer from the options given below:
1. A and B only
2. B and C only
3. C and D only
4 B and D only
Answer : D

Question : The way in which consumers can produce a green product from a brown product
a) Monopoly
b) Retail offsets
c) Price discrimination
d) Fiscal deficit
Answer : B

CASE STUDY - 3

Read the passage carefully and answer the questions that follows

The objectives of public finance are to ensure macroeconomic stability, achieve the desired state of distribution, provide public services to accelerate growth and development. Fiscal policy has both macro and microeconomic aspects. Further, the objectives include allocating resources for the provision of public services. The important point is that ensuring security and protection of property rights is a basic public good and this can be provided only by the
government. The governments have the task of distributing incomes and alleviating poverty.
After the Great Depression and influenced by Keynesian economics, public spending was assigned a central role. Thus, the role of public finance is inextricably linked to the role of the state. From merely ensuring safety, security and property rights, governments have expanded their activities to providing a variety of public services with externalities. The expansion has been a subject matter of debate. Musgrave considers that the expansion of the public sector has been a necessary and constructive development and strong public sector is needed along with the capitalist market. In contrast, Buchanan argues that dispute arises when the stateexpands to areas beyond the realm of boundaries of the protective state into a productive or tax-transfer state.In India, state intervention through public finance policy has to play an important role besides ensuring the safety and security of people and their property rights. These include the need to overcome large social and physical infrastructure deficit, provide correctives to missing and imperfect markets, introduce measures to reduce acute inequalities and poverty and provide correctives to widespread information asymmetry. Interventions are needed also to provide externalities in terms of market development, irrigation, storage and price support in agriculture to deal with market imperfections and supply volatility. Similarly, generalized externalities have to be ensured for the manufacturing and service sectors through competitive levels of infrastructure. India's public finance policies have enabled the government to play a catalytic role in the development of the economy as a whole. In addition over the years, there has been a significant increase in transfers from the government such as for employment guarantee and food security, national housing scheme, Swachchh Bharat Abhiyan, Ujjawala Yojana, Pradhan Mantri Kisan Samman Nidhi, periodic loan waives, etc.

Question : Which one of the following statements is correct?
A. The expansion of the public sector has been a necessary and constructive development and
a strong public sector is needed along with the capitalist market
B. There are several reasons for the state to embrace a much larger role
C. In India, state intervention through public finance policy has to play an important role
D. Keynesian economics states that the state has to ensure full employment
Choose the correct answer from the options given below:
1. A and B only
2. A, B and C only
3. A and C only
4. A, B, C and D
Answer : C

Question : The statement, "Dispute arises when the state expands to areas beyond the realm of boundaries of the protective state into a productive or tax-transfer state", was given by
1. Musgrave
2. Keynes
3. Dalton
4. Bueltanan
Answer : D

Question : Which one of the following objectives of public finance is NOT correct?
1. Ensure macroeconomic stability
2.Ensure reduction of adverse balance of payments
3. Accelerate growth and development
4. Desired state of distribution
Answer : B

Question : The externalities of the government intervention in the economy can be found in terms of
A. Market development
B. Money supply
C. Storage and price support in agriculture
D. Irrigation
Choose the correct answer from the options given below:
1. C and D only
2. A, B and D only
3. A, B and C only
4. A and D only
Answer : A

Question : Which one of the following does NOT fall in the category of government transfers?
1. National Housing
2. Swachchh Bharat Abhiyan
3. Periodic loan waivers
4. Education
Answer : D