Chapter: Human Capital Formation in India
Objective Type Important Questions: -
1. The labour skill of an educated person is more than that of a uneducated person and hence the former is able to
create more income than the latter and his contribution to ________________ is consequently more.
2. Economists have stressed the need for expanding educational institutions in a nation. Give reason.
3. Just as a country can turn physical resources like land into physical capital like factories, similarly it can turn
Human Resources like students into ____________ like doctors and engineers.
4. We need investment in human capital. Give reason.
5. Investment in education convert human beings to ________________.
6. _______________ represents the 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.
7. Investment in education, health, on-the job training, ____________ and____________ are the sources of human
capital formation.
8. Individuals investment in education with objective of:
a) Increasing their future income
b) accelerating the development process
c) facilitating adaptation of new technologies
d) All of the above
9. Like education, health is also considered important. Give reasons.
10. Expenditure on health is an important source of human capital formation. give reason.
11.Match the following:
a) Medical Intervention during illness
b) Spread of health literacy
I) Preventive Medicines
II) Curative Medicine
III) Social Medicine
12. Firms will insist that the workers should work for a specific period of time, after their on-job-training. Give
reasons
13. Expenditure regarding on-the-job training is a source of human cougar formation as ________________.
14.____________ is the reason for the Rural-urban migration in India.
15. Technically qualified persons, like engineers and doctors, migrate to other countries because____________.
16. In both cases-Rural-urban migration and migration to other countries-involves cost of transport, higher cost of
living in the migrated places and______________.
17. Expenditure on migration is a source of human capital formation. Give reasons.
18. Expenditure incurred for acquiring information relating to the labour market and other markets is a source of
human capital formation. Give reason.
19. The two forms of capital formation are ________________.
20. Physical Capital is______________and can be easily sold in the market. Human Capital is_____________; it is
not sold in the market, only the services of the human capital are sold. (Tangible/ intangible).
21. Both _____________ and _________, along with many other factories like on-the-job training, job market
information and migration, increase an individual’s income generating capacity.
22. The enhanced productivity of human beings or human capital:
a) Contributes substantially towards increasing labour productivity
b) stimulates innovation
c) creates ability to absorb new technologies
d) all of the above
23. The causality between human capital and economic growth flows to either direction. Give reasons.
24. Two independent reports on the Indian economy, in recent times have identified that India would grow faster
due to its strength in _______________.
