CBSE Class 11 Economics On Human Capital Formation Worksheet

Question. The ability to read and write is known as:
(A) Education
(B) Literacy
(C) Human capital
(D) Human development
Answer. B

Question. The stock of ' skill and expertise' office at a point of time is known as:
(A) social infrastructure
(B) Human capital
(C) Physical capital
(D) None of these
Answer B

Question. which of the following is the problem of human capital formation in India:
(A) Brain drain
(B) Low academic standards
(C) Rising population
(D) All of these
Answer. D 

Question. which of the following organisations is engaged in designing text material up to the senior secondary level :
(A) UGC
(B) AICTE
(C) ICMR
(D) NCERT
Answer. D

Question. the responsibility of direction and control of higher education is with:
(A) Government of India
(B) Department of higher education
(C) University grants commission
(D) None of these
Answer. D 

Question. who is responsible for the implementation of rules and regulation for technical education in the country :
(A) National council of educational research and training
(B) University grants commission
(C) All India council of technical education
(D) Indian council for medical research
Answer. C 

Question. human capital formation leads to :
(A) Efficient utilisation of inputs
(B) Increases in the stock of physical capital
(C) Increase in GDP growth
(D) Both ( A ) and ( C )
Answer. D 

Question. Overall literacy rate ( census 2011 ) in India is :
(A) 74%
(B) 70%
(C) 76%
(D) 68%
Answer. A 

Question. what is female literacy rate in India :
(A) 68%
(B) 65.5 %
(C) 74%
(D) None of these
Answer. B 

Question. As per census 2011 the literacy rate in rural India is:
(A) 74%
(B) 68.9 %
(C) 60%
(D) None of these
Answer. B 

Question. Male literacy rate in India according to census 2011 :
(A) 80%
(B) 85%
(C) 82.1 %
(D) None of these
Answer. C

Question: Before introducing new technology, a firm provides the basic skills to the workers reading tits usage. This is which source of human capital formation.
(A) Study programme for adults
(B) On the Job training
(C) Expenditure on information
(D) Investment in education 

Answer: B

Question: Economic growth requires--------------
(A) Human capital
(B) Physical capital
(C) Both (a) and (b)
(D) Neither (a) nor (b)

Answer: C

Question: The stock of skill and expertise of nation at a point of time is called:
(A) Human capital
(B) Human development
(C) Human capital formation
(D) Physical capital

Answer: A

Question: Sources of Human capital formation:
(A) Investment in education
(B) Investment in Health
(C) Investment in on-the-job training
(D) All of these

Answer: D

Question: ---------------------- is better indicator of development
(A) National output
(B) Per capita income (monetary)
(C) Real per capita income
(D) National income

Answer: C

Question: Expenditure on education is--------------
(A) Wasteful
(B) Investment
(C) Skill
(D) Not required 

Answer: B

Question: From the following which is not a human capital formation:
(A) On-the job training
(B) Migration
(C) Investment in education
(D) None of the above

Answer: D

Question: Human capital and Human development are--------------
(A) Opposite concepts
(B) Different concepts
(C) Both mean the same
(D) Related concepts, but concepts are not identical 

Answer: D

Question: Human capital formation leads to:
(A) Efficient utilization of input
(B) Increase in GDP
(C) Increase in the stock of physical capital
(D) Both (a) and (b) 

Answer: D

Question: Which of the following is the problem of human capital formation?
(A) Brain drain
(B) Raising population
(C) Low academic standards
(D) All of these

Answer: D 

Question: Before introducing new technology, a firm provides the basic skills to the workers regarding its usage.
This is which source of human capital formation?
(A) Study programme for adults
(B) On the job training
(C) Expenditure on information
(D) Investment in education

Answer : B

Question: If a worker absent herself/ himself for long due to ill health, it will affect his/ her:
(A) Job security
(B) Wage/income
(C) Productivity
(D) All the above

Answer : D

Question: Government organisation that regulate education sectors
(A) NCERT
(B) ICMR
(C) UGC
(D) Both (a) and (c)

Answer : D

Question: In India, education sector is regarded by:
(A) Ministry of education
(B) NCERT
(C) UGC and AICTE
(D) All the above

Answer : D

Question: Which of the following is not a source of Human Capital formation?
(A) Education
(B) Saving
(C) Health
(D) Information

Answer : B

Question: Expenditure on education is __________.
(A) Wasteful
(B) Investment
(C) Skill
(D) Not required

Answer : B

Question: Significance of human capital was recognized in _____________ five year plan.
(A) Third
(B) Second
(C) Seventh
(D) Fourth

Answer : C

Question: From the following which is not a source of human capital :
(A) On-the job training
(B) Migration
(C) Investment in education
(D) None of the above

Answer : D

Question: ___________ is major source of human capital.
(A) Taxes
(B) Subsidies
(C) Health
(D) All the above

Answer : C

Question: ____________ is better indicator of development.
(A) National output
(B) Per capita income (monetary)
(C) Real per capita income
(D) National income

Answer : C

Case Study Questions Human Capital Formation Class 11 Economics

When we talk about economic growth, human capital is the main reason for accelerated growth and expansion for many countries, which provide investment in human capital. This gives the best advantages to these countries for providing the best situation for work and life. A significant advantage in generating a stable environment for growth is that the nation has the expanded high quality of human capital in fields like health, science, management, education and other fields. Here the main components of human capital are definitely human beings but presently, the principal component is creative an educated and enterprising person, with a high level of professionalism.

Question: Human capital increases-------------------
(A) Labour in market
(B) Labour in productivity
(C) Trained labour
(D) None of the above 

Answer: B

Question: refers to the stock of skill, ability, expertise, education and knowledge in a nation at a point of time.
(A) Human capital
(B) Physical capital
(C) Natural capital
(D) None of the above 

Answer: A

Question: The human capital in the economy manages the central portion of the ----------------- of the country 

Answer: National wealth

Question: Innovation leads ----------------
(A) Growth
(B) Development
(C) Production
(D) All of the above 

Answer: D

Traditionally, economic theory has given emphasis on physical capital accumulation as the most robust source of economic growth at least in the short run, with the exogeneous technical progress being the long run determination of growth. The exogeneity of technological progress in the neoclassical growth model and the difficulty of explaining long-term economic growth have restricted the analytical capacity of the neoclassical model and its empirical verification.
Human capital theory suggests that individual and society derive economic benefits from investments in people. Education has consistently been emerged as prime human capital, but Becker and schulz have argued that health and nutritional expenditure is also part of human capital investment. This is because education is perceived to contribute to health and nutritional improvements.

Question: Economic development depends upon which of the following components?
(A) Development Physical capital
(B) Development human capital
(C) Development working capital
(D) None of these 

Answer: B

Questions: Economic growth depends upon:
(A) Development Physical capital
(B) Development human capital
(C) Development working capital
(D) All of these 

Answer: D

Question: Which of the following are type of on- job-training?
(A) On Campus training
(B) Off campus training
(C) Both (a) and (b)
(D) None of these 

Answer: C

You all may have heard of the term ‘capital’ in economics Adam smith defines capital as “That part of the man’s stock which he expects to afford him revenue”. Capital is one of the four factors of production- land, labour and entrepreneurship being the other three. There are many types of capital. However, for time being, we shall focus our discussion on two types of capital -physical capital and human capital. India is possessing a huge size of human resources. In order transform the liability of this huge size of population into assets adoption of various measures of human capital is very much essential.
The term human capital formation implies the development of abilities and skills among the population of country. In order to develop various sectors of the economy, the country should introduce manpower planning for the development of its human resources. It is from the 7th five year plan onward that we began to focus on Human Development.

Question: Doctors, Engineers etc. are part of human -------------- 

Answer: Capital

Question: The --------------- capital is tangible and can be easily sold in the market

Answer: physical

Question: State any two sources of human capital.
(A) Migration
(B) Expenditure on education
(C) Both (a) and (b)
(D) None of these

Answer: C

Prime minister Narender Modi Interacted with leading economists of the country on charting the economic agenda in the post COVID world and highlighted government’s commitment to developing world class infrastructure and the economic potential set to be unleashed by National optical fiber network.
He highlighted the faith shown by foreign investors in India’s growth story with foreign direct investment growing by 11 percent between April and October , despite a global recession.
The participants stressed the importance of investing in public health and education ,as a human capital would also likely emerge as driver of growth, especially in the knowledge economy going forward. They also stressed on labour intensive manufacturing given the success India has achieved in launching the PLI scheme in mobile manufacturing.

Question: Which one of the following is a major sources human capital in a country?
(A) Expenditure on education
(B) Expenditure on Infrastructure
(C) Expenditure on defense
(D) None of these 

Answer: A

Question: capital refers to the stock of skill, ability, expertise, education and knowledge embodied in the people 

Answer: Human capital

Question: Which International organization recognized India as a knowledge economy in its report,Leveraging strengths and opportunities -------------------------
(A) World Bank
(B) IMF
(C) UNO
(D) None of these 

Answer: A 

Question: Why do we need to invest in human capital ------------------------ ?
(A) Effective use in Physical capital
(B) Increase in Income
(C) Increase in productive capacity
(D) Both ‘a’ and ‘c’ 

Answer: D

ASSERTION & REASON

Question: ASSERTION (A): According to human capital, human being are ends in themselves.
REASONING (R): Human capital considers education and health as means to increase labour productivity.
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) not is 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: D

Question: ASSERTION (A): Human capital of a nation is raised when skill and expertise of people rises.
REASONING (R): Raising population is an impediment to the process of human capital formation of India.
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) not is 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): Improvement in education and health sectors and growth in real per capita Income in both developing and developed countries.
REASONING (R): Higher income causes building of high level of human capital .
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) not is 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): cause and effect relation between Human capital and economic growth can be easily proved.
REASONING (R): Due to measurement problems, it is difficult to establish a relation of cause and effect from the of human capital (Education and health) to economic growth.
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) not is 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: D

Question: ASSERTION (A): Gains of migration are greater than the migration, leading to human capital formation.
REASONING (R): Migration contributes to human capital formation as it facilitates utilization of inactive skills of people.
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) not is 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): World bank, in its recent report, India and the knowledge economy.
REASONING (R): India would grow faster due to its strength in human capital formation.
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) not is 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): Skill India programme launched by the government is an attempt to increase human capital formation.
REASONING (R): Skill is an important element of human capital 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) not is 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

 

I. Answer in one sentence each

a. What does human capital formation mean?

b. What do you mean by “social medicine”?

c. How is physical capital different from human capital?

d. Define Adult literacy rate.

e. Define primary completion rate.

f. Define youth literacy rate.

g. What does gender equity mean?

 

II. Answer in around 60 words.

a. How does expenditure on migration become a source of human capital formation?

b. How does expenditure on acquiring information become a source of human capital formation?

c. Distinguish between human capital and human development.

d. Name the agencies that regulate education and health sectors of India.

e. What are the indicators of educational achievements in a country?

f. Discuss the need of promoting women education in India.

 

III. Answer in around 75 words

a. Examine the importance of education in the economic development of a country.

b. Explain the two ways in which government’s expenditure on education can be expressed.

c. Why is government intervention necessary in education and health facilities?

d. Explain how human capital and economic growth related?

e. How does expenditure on ‘on-the job- training’ become a source of human capital formation?

 

IV. Answer in around 100 words

a. Discuss the following as a source of human capital formation
i. Expenditure on education
ii. Expenditure on health

b. What are the main problems of human capital formation in India? Explain with respect to education and health

c. Discuss the future prospects of Education in India in terms of:
i. Education for all
ii. Gender equity
iii. Higher educatio

 

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