Class 12 Human Capital Formation in India Mock Test (CBSE)

Topics in Human Capital Formation in India

• What is human capital
• Sources of human capital
• Human capital and human development
• Human capital and economic growth
• State of human capital formation in India
• Education sector in India
• Future prospects

Human Capital Formation in India practice questions with answers

1. Q1Multiple choice·1 mark
   Which of the following committees or commissions recommended that at least $6\%$ of GDP should be spent on education for proper educational development in India?

   1. (a)Mahalanobis Committee
   2. (b)Education Commission (1964-66)
   3. (c)Karve Committee
   4. (d)Planning Commission
   Show answer and step marks

   1. Correct option: (b) Education Commission (1964-66)+1

   Answer: (b)
2. Q2Multiple choice·1 mark
   Which of the following poses a significant challenge regarding the future prospects of human capital formation in India?

   1. (a)Steadily falling adult literacy rates across most of the major Indian states
   2. (b)A continuing decline in the enrolment of girls in elementary and secondary schools
   3. (c)Persistent regional disparities in educational attainment and access
   4. (d)A long-term fall in life expectancy at birth across most regions of the country
   Show answer and step marks

   1. Correct option: (c) Persistent regional disparities in educational attainment and access. Literacy, girls' enrolment and life expectancy have all risen steadily, but attainment and access to education still differ widely between states.+1

   Answer: (c)
3. Q3Short answer·3 marks
   Explain any three major sources of human capital formation in a country.
   Show answer and step marks

   1. First source, briefly explained, any one of: expenditure on education (raises labour productivity and future earnings); expenditure on health (healthier workers work more efficiently and longer); on-the-job training (raises skills and efficiency); migration (moves people to better-paid jobs where their skills are used fully); expenditure on information about labour markets, education and health; or any other valid source of human capital.+1
   2. Second source, a different one from the same list, briefly explained.+1
   3. Third source, a different one from the same list, briefly explained.+1

   Answer: Any three of: expenditure on education, expenditure on health, on-the-job training, migration, expenditure on information; each raises the productivity and earning capacity of workers.

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