ABS VIDHYA MANDHIR

THIRUVALUR
QUESTION BANK

CHAPTER-V Human Capital Formation

Objective Type Questions (1 Mark)

1. 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
2. Which of the following is not a source of Human Capital Formation?
(a) Education
(b) Saving
(c) Health
(d) Information
3. 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
4. If a worker absents 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
5. Which of the following statement is true?
(a) Major share of education expenditure goes to higher education.
(b) No education cess is imposed by the government on all union taxes.
(c) Human development is based on the idea that education and health are integral to
human well-being.
(d) Education and literacy can be used as synonyms of each other.
6. In India, education sector is regulated by:
(a) Ministry of education
(b) NCERT
(c) UGC and AICTE
(d) All the above
7. "the major share of total education expenditure it taken by
(a) Elementary education (b) higher education
(c) Secondary education (d) Technical education
8. 'Right to Education Act' was enacted in the year:

(a) 2006 (b) 2007 (c) 2008 (d) 2009

9. Percentage of education cess levied on all union taxes is:

(a) 4% (b) 3% (c) 2% (d) 1%

10. The Adult Literacy Ratc among females in India in the year 2000 was:

(a) 68.4 per cent (b) 61.9 per cent (c) 45.4 per cent (d) 37.9 per cent

11. _______is intangible and cannot be sold in the market.

12. ________implies the development of abilities and skills among the population of the
country.

13. ______and________ are the major sources of human capital in a country.

14. 'Skill India Programme launched by the Government of India is attempt to increase
human capital formation. (True/false)

15. Gender bias in India is a hindrance to the process of skill formation (True/false)

16. National literacy mission was setup in 1968 (True/false)

17. Give the idea on which human development is based?

18. Mention any two sources of human capital formation

19, What is curative medicine?

20. What is social medicine?

21. Give any one form of 'on-the-job training' to the workers.

22. What is the reason for the rural-urban migration in India?

23. why do people spend to acquire information relating to the labour market, education and
health?

24. Give one difference between Physical Capital and Human Capital.

25. What does the abbreviation 'NCERT' stand for?

26. What does the abbreviation 'AICTE' stand for?

27. Give the full form of 'ICMR'.

28. What do you understand by the "Right to Education

29. When was the 'Right to Education ACC enacted by the Government or India?

30. What according 'to you is "quality education'

Short Answers (3 Marks)

31. What is human capital? Explain at least three areas where expenditure made is consider
being expenditure on human capital formation?

32. Explain the main sources human capital formation?

33. A skilled worker like software professional generates more income than an unskilled
worker. Why?

34. What role can government play in human capital formation in India?

35. Explain any four problems of human capital formation in India.

Or

What is the main problem of human capital formation in India?

Or

Indian Government has been taking steps for human capital formation, yet human capital
formation is facing problems. Explain such problems of human capital formation.

36. Why and how do firms give on-the-job-training to their workers?

37. Distinguish between Physical Capital Formation and Human Capital Formation.

38. Explain how is India a knowledge economy.

39. Is the formation of human capital linked to man's all round development or, as it is now
called human development?

40. Mention the various indicators of human development'

Or

Mention any three indicators of human development

41. Write any two differences between human capital formation and human development?

42. What does government expenditure on education reveal?

43. How is the government expenditure on education expressed? In your opinion is a better
measure?

44. Why is it essential for the government to regulate the fee structure in educational
institutions?

45. Give any three challenges facing Indian education system

46. Why has the Government of India levied a 2% education cess on all union taxes?

47. Why unemployment is highest among the educated youth?

Long Answer Type Questions [6 Marks]

48. Explain four sources of human capital formation.

Or

Explain the main sources of human capital formation.

49. Differentiate between physical capital and human capital.

50. Explain the principal role of human capital formation in accelerating the rate of economic
growth.

51. Throw light on the two recent reports published on the Indian economy.

52. "The Indian education pyramid is steep. "Elaborate.