CBSE Class 11 Economics Human Capital Formation In India Worksheet

CBSE Class 11 Economics Worksheet - Human Capital Formation In India - Practice worksheets for CBSE students. Prepared by teachers of the best CBSE schools in India.

HUMAN CAPITAL FORMATION IN INDIA
Concept (Key points with explanation)

• Human capital - refers to the stock of skill, ability, expertise, education and knowledge embodied in the people.

Sources of human capital:
Observe the chart for better understanding

• Physical capital - refers to assets which themselves have been manufactured and are used for production of other goods and services.
• Human capital formation – refers to the process of addition made to the stock of skilled and capable people in the country over a period of time.

Role of human capital formation in economic growth:
(i) Labour skill increases and more production.
(ii) Change in emotional and physical environment of growth.
(iii) Improves quality of life.
(iv) Increase income generating capacity
(v) Innovative skills.
(vi) Raises social justice and equality.

• Problems in human capital formation:
(i) Rising population
(ii) High regional and gender inequality.
(iii) Brain drain
(iv) Insufficient man power planning.
(v) Insufficient on the job training in agriculture
(vi) High poverty levels
(vii) Low academic standards
(viii) Lack of proper manpower planning

Check the difference between physical capital and human capital:

Human Capital and Human Development

• Interrelationship between human capital formation and economic growth Human capital formation raises the process of Economic Growth Economic growth raises the process of human capital formation.

Rise in Human Capital
    ↓
Modern attitude and outlook, better quality of life, Higher life expectancy
    ↓
More Efficiency
    ↓
More Production
    ↓
More economic growth

Rise in Economic Growth
    ↓
Rise in per capita income
    ↓
More investment in education and health
    ↓
Rise in human capital

India as a knowledge economy:
India and the Knowledge Economy assesses India’s progress in becoming a knowledge economy and suggests actions to strengthen the economic and institutional regime, develop educated and skilled workers, create an efficient innovation system, and build a dynamic information infrastructure.

Human capital formation in India:
(i) The seventh five-year plan stressed upon the importance of human capital.
(ii) In India, ministry of education at the Centre and state level, NCERT (National Council of Educational Research and Training), UGC (University Grant commission), and AICTE (All India Council of Technical Education) regulate the education sector.
(iii) In India, Ministry of Health at the Union and the State level and ICMR (Indian Council of Medical Research) regulate the health sector.

Education sector in India
Growth in government expenditure on education:
• expenditure by the government in two ways
• percentage of total government expenditure
• percentage of GDP

Elementary education takes major share of total expenditure.
Secondary and senior secondary education
Higher education ---- less share

EDUCATION FOR ALL IS STILL A DISTANT DREAM IN OUR COUNTRY
BUT----------
➢ Gender equity------better than before
➢ Higher education --- a few takers

PLEASE NOTE
o Government should increase allocation for higher education
o Improve the standard of higher education institutions
o India has a rich stock of scientific and technical manpower in the world
o Ensure economic growth and equity
Focus on spread of education and health services across different sectors of society

I. MULTIPLE CHOICE QUESTIONS

Question. Individuals invest in education for (choose the correct alternative)
a. Increasing their future income
b. Having a healthy life
c. Improving their social status
d. Future generation to have a better life
Answer: Increasing their future income

Question. Expenditure on on-the job training is a source of capital formation because
a. Money is spent on it
b. It cannot be avoided
c. It is part of CSR
d. Labour productivity increases
Answer: Labour productivity increases

Question. The cost of migration for a person includes (choose the correct alternative)
a. Cost of transfers: port
b. Higher cost of living in the migrated place
c. Pain of having to live in a new place
d. All of the above
Answer: All of the above

Question. Expenditures on health and education are to be carried on by
a. Central government
b. State government
c. Local government
d. All of the above
Answer: All of the above

Question. The Government expenditure on education is expressed as (choose the correct alternative)
a. As a % of total Government expenditure
b. As a % of GDP
c. As a proportion of human development
d. a & b
Answer: a & b

Question. Generally education achievements in a country are indicated in terms of
a. Adult literacy level
b. Youth literacy level
c. Primary education completion rate
d. All of the above
Answer: All of the above

Question. When was Right to Education Act enacted? (Choose the correct alternative)
a. 2008
b. 2009
c. 2010
d. 2012
Answer: 2009

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: Eradicates inequality

Question. How much educational cess has been imposed by the government on all Union taxes?
a.1 %
b. 2%
c. 4%
d. 5%
Answer: 2%

Question. Which of the following institutes comes under the health sector? (Choose the correct alternative)
a. NCERT
b. UGC
c. AICTE
d. ICMR
Answer: ICMR

Question. In which year the Government of India enacted the Right to Education (RTE) Act?
(a) 2007
(b) 2008
(c) 2009
(d) 2010
Answer : 2009

Question. The government of India is leaving a ________ percent Education Cess on all the union taxes for spending on elementary education.
(a) 2 percent
(b) 5 percent
(c) 10 percent
(d) 12 percent
Answer : 2 percent

Question. Which one of the following is a major source of human capital formation in the country?
a. Expenditure on education
b. Expenditure on infrastructure
c. Expenditure on defense
d. Expenditure on energy
Answer: Expenditure on education

Question. The objective of midday meal scheme is (choose the correct alternative)
a. To boost universalization 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 universalization of upper primary level of education
Answer: to increase enrolment attendance and retention, and also improving the nutritional Status of Children in school

Question. What percent of GDP was invested in education in the year 1952? (Choose the correct alternative
A.7.92 percent
b.11.7 percent
c. 0.64 percent
d.3.31 percent
Answer: 0.64 percent

Question. Which of the following is not an example of physical capital? (Choose the correct Alternative)
a. Machinery
b. Raw material
c. Building
d. education and knowledge in people
Answer: Education and knowledge in people

Question. To make a favorable impact on fertility rate (choose the correct alternative)
a. Marriage age of girls must be raised
b. Women education must be promoted
c. Maternal mortality must be improved
d. All of the above
Answer: Women education must be promoted

II. Fill in the blanks with the correct Answer:

Question. Human capital formation is a _______ process.
Answer: social

Question. Individuals invest in education with the objective of increasing their future ________
Answer: income

Question._______ is the reason for the rural-urban migration in India.
Answer: Unemployment

Question. ________ capital is completely mobile between countries.
Answer: Physical

Question. India has the potential to become a leading _______ economy.
Answer: knowledge-based

Question. _______ is the prime funding authority for university education.
Answer: UGC

2. Both ___________ and _________ , along with many other factors like on-the-job training, job market information and migration, increase an individuals income generating capacity.
Answer: education health

4. __________is the outcome of investment in education, health, on-the-job training, migration and information.
Answer: Human capital formation

3. Two independent reports on the Indian economy, in recent times, have identified that India would grow faster due to its strength in _________.
Answer: human capital formation

1. ___________ represents enhanced labour productivity which is an acquired ability and an outcome of deliberate investment decisions with an expectation that it will increase future income sources.
Answer: human capital

III. State whether the following statements are true or false.

Question. Education and health are the two major sources of human capital in a country.
Answer: True

Question. Physical capital is inseparable from its owner.
Answer: False

Question. Human capital treats humans as ends in themselves.
Answer: False

Question. Higher-income leads to the development of the high level of human capital and vice-versa.
Answer: True

Question. Improper planning for human capital formation has resulted in a shortage of manpower in the health and education sectors.
Answer: True

Question. Elementary education takes a major share of total education expenditure in India.
Answer: True

Question. The level of unemployment among educated youth is the highest.
Answer: True

5. Match the following:
                ​​​​​​​        ​​​​​​​A
(a) The percentage of ‘education expenditure of total government expenditure’.
(b) The percentage of ‘education expenditure of GDP’
        ​​​​​​​        ​​​​​​​        ​​​​​​​B
(i) expresses how much of our income is being committed to the development of education in the country.
(ii) indicates the importance of education in the scheme of things before the government.
Answer: (a) — (ii), (b) — (iii)

Objective type question 

Question. Which level of education takes a major share of total education expenditure in India?
Answer: Elementary

Question. The education commission (1964-66) had recommended that at least ____________ of GDP be spent on education so as to make a noticeable rate of growth in educational achievements.
Answer: percent

Question. In 2009 the government of India enacted ______________make free education a fundamental right of all children in the age group of 6-14 years.
Answer: the Right to Education Act

Question. What was the share of education in total government expenditure in 2014?
Answer: 15.7 percent

Question. What is the full form of ICMR?
Answer: Indian Council for Medical Research

Question. Physical capital refers to _
Answer: Stock of tangible input of production

Question. The stock of ‘skill and expertise of a nation at a point of time is known as:
Answer: Human capital

Question. Who is responsible for the implementation of rules and regulations for technical education in the country?
Answer: All India Council of Technical Education

Question. People as a resource means ___________
Answer: Country’s human capital in terms of their existing productive skill

Question. People of _____________ age group are treated as a productive labour force.
Answer: 15 – 60

Question. World Bank in its report ‘India and the Knowledge Economy leveraging strengths and opportunities advised India to make a transition to ____________
Answer: Knowledge economy

Question. Define the term human capital formation
Answer: development of abilities and skills among the population of the country

Question. What is the full form of NCERT?
Answer: national council of educational research and training

Question. in which year the campaign” Beti Bachao,Beti Padhao” was launched by the government?
Answer: 2015

Question. Why do we need to invest in human capital?
Answer: to increase the productive capacity of the country

Question. What do the differences in male and female literacy rate indicate?
Answer: education in India is gender biased.

Question. Why do individuals invest in education?
Answer: for increasing their future income.

IV. Assertion and reason based questions.

Question. Read the following Statements-Assertion (A) and Reason (R). choose one of the correct alternative given below
Assertion: A Nation’s true wealth is neither in its land and water, nor in forests or mines, nor in dollars
Reason: Human resources and its development is the most important for nation building and strong economic development
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. Read the following Statements-Assertion (A) and Reason (R). choose one of the correct alternative given below
Assertion: Mobility of human capital does not impact the brain power available in an economy
Reason: Brain drain of one economy is brain gain for another
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: D

Question. Read the following Statements-Assertion (A) and Reason (R). choose one of the correct alternative given below
Assertion: Human capital also undergoes depreciation
Reason: Like physical capital, human capital also depreciates because of technological obsolescence
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: C

Question. Read the following Statements-Assertion (A) and Reason (R). Choose one of the correct alternative given below
Assertion: Human capital like physical capital benefits the owner
Reason: A professional can have a better standard of living without the society benefitting
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: C

Question. Read the following statements-Assertion (A) and Reason (R).choose one of the correct alternative given below
Assertion: Social medicine is a source of human capital
Reason: Easy availability of medicine makes cure easy
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: C

Question. Read the following statements-Assertion (A) and Reason (R).choose one of the correct alternative given below
Assertion: Human capital formation and human development are one and the same
Reason: When there is human capital formation there will be human development
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: D

Question. Read the following statements-Assertion (A) and Reason (R).choose one of the correct alternative given below
Assertion: Human beings need not be literate if they are not going to be human capital
Reason: Human welfare must be increased through investments in education and health even if it does not contribute to human capital
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: D

Question. Read the following statements-Assertion (A) and Reason (R).choose one of the correct alternative given below
Assertion: There is need for Government intervention in health and education
Reason: Investment in health and education are easily reversible
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: C

Question. Read the following statements-Assertion (A) and Reason (R).choose one of the correct alternative given below
Assertion: The rise in average education levels reduces the inequalities of income worldwide
Reason: The higher income earning capacity raises the standard and quality of living
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. Read the following statements-Assertion (A) and Reason (R).choose one of the correct alternative given below
Assertion: The education pyramid of India is one of a steep pyramid
Reason: Our tertiary education is too well developed whereas the primary education is lagging
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: C

Question. Read the following Statements-Assertion (A) and Reason (R). choose one of the correct alternative given below
Assertion: components of human capital and human developments are complementary to Each other
Reason: expenditure on components of human capital leads to human development.
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. Read the following Statements-Assertion (A) and Reason (R). choose one of the correct alternative given below
Assertion: Human Capital formation gives birth to innovation, invention and technological improvements.
Reason: Investment in education creates the ability to adopt new technologies, facilitate invention and innovations since an educated work force generally adopts to modern technologies and innovations.
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. Read the following Statements-Assertion (A) and Reason (R). choose one of the correct alternative given below
Assertion: expenditure on education and health are key determinants of human capital formation.
Reason: Human capital formation is ongoing and a continuous process.
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. Read the following Statements-Assertion (A) and Reason (R). choose one of the correct alternative given below
Assertion: On the job training is a source of human capital formation.
Reason: After on the job training of employees, firm insist that workers should work for a specific period of time.
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. Read the following Statements-Assertion (A) and Reason (R). choose one of the correct alternative given below
Assertion: Education contributes to economic growth.
Reason: Education confers higher earning capacity on people.
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. Read the following Statements-Assertion (A) and Reason (R). choose one of the correct alternative given below
Assertion: The spread of education is necessary to control the population growth rate.
Reason: Human Capital formation decreases the quality of life.
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: C

Question. Read the following Statements-Assertion (A) and Reason (R). choose one of the correct alternative given below
Assertion: The facilities for the formation of human capital have remained adequate.
Reason: The resources allocated to human capital formation have been much less than the resources required.
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: D

More Question

Q1. What is the meaning of human capital?
Q2. Define human capital formation. What is its role in economic development?
Q3. What are the indicators of human capital formation?
Q4. Discuss the achievements of the educational sector.
Q5. Examine the important weaknesses of the educational sector in India.
Q6. What measures have been taken to reform educational system in India?
Q7. Compare the public expenditure on education of India & Sweden?