{"id":88062,"date":"2021-06-18T11:45:34","date_gmt":"2021-06-18T06:15:34","guid":{"rendered":"https:\/\/kseebsolutions.guru\/?p=88062"},"modified":"2021-07-02T17:05:42","modified_gmt":"2021-07-02T11:35:42","slug":"1st-puc-economics-question-bank-chapter-5-part-2","status":"publish","type":"post","link":"https:\/\/kseebsolutions.guru\/1st-puc-economics-question-bank-chapter-5-part-2\/","title":{"rendered":"1st PUC Economics Question Bank Chapter 5 Human Capital Formation in India"},"content":{"rendered":"

Karnataka 1st PUC Economics Question Bank Chapter 5 Human Capital Formation in India<\/h2>\n

1st PUC Economics Human Capital Formation in India Textbook Questions and Answers<\/h3>\n

I. Choose the correct answer (each question carries 1 mark)<\/span><\/p>\n

Question 1.
\nWho can work better an any in the following?
\n(a) A sick person
\n(b) An unhealthy labourer
\n(c) A person with sound health
\n(d) None of the above
\nAnswer:
\n(c) A person with sound health<\/p>\n

\"1st<\/p>\n

Question 2.
\nIndia\u2019s literacy rate in 2013
\n(a) 70%
\n(b) 71%
\n(c) 74%
\n(d) 73%
\nAnswer:
\n(c)74%<\/p>\n

Question 3.
\nWhat per cent of GDP as estimated by the Tapas Majum dar Committee should be spent for education.
\n(a)4%
\n(b)6%
\n(c) 8%
\n(d) 5%
\nAnswer:
\n(b) 6%<\/p>\n

Question 4.
\nEducation for all,
\n(a) Still not a distant dream
\n(b) Still a distant dream
\n(c) Dreani only
\n(d) None of the above
\nAnswer:
\n(b) Still a distant dream<\/p>\n

II. Fill in the blanks (each question carries 1 mark)<\/span><\/p>\n

Question 1.
\nInvestment in education is considered as one of the main sources of________
\nAnswer:
\nHuman capital<\/p>\n

\"1st<\/p>\n

Question 2.
\nThe government of India has also started levying a 2% of________ on all union taxes.
\nAnswer:
\nEducation cess<\/p>\n

Question 3.
\nThe revenue from education cess has been earmarked for spending on_________
\nAnswer:
\nElementary education.<\/p>\n

Question 4.
\nHealth expenditure directly increases the supply of
\nAnswer:
\nHealthy<\/p>\n

Question 5.
\nThe contribution of an educated person to economic growth is more than that of a person.
\nAnswer:
\nIlliterate<\/p>\n

III. Match the following (each question carries 1 mark)<\/span><\/p>\n

Question 1.<\/p>\n\n\n\n\n\n\n\n\n\n
1. More contribution to national income<\/td>\n(a) Global growth to centres<\/td>\n<\/tr>\n
2. Deutsche Bank<\/td>\n(b) India and the knowledge economy<\/td>\n<\/tr>\n
3. World Bank<\/td>\n(c) Literacy rate<\/td>\n<\/tr>\n
4. Educational achievements<\/td>\n(d) Illiterate person<\/td>\n<\/tr>\n
5. Better gender equity<\/td>\n(e) A positive development<\/td>\n<\/tr>\n
<\/td>\n(f) Skilled labourer<\/td>\n<\/tr>\n
<\/td>\n(g) A negative development<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

Answer:
\n1- f; 2 – a; 3 – b; 4 – c; 5 – e;<\/p>\n

\"1st<\/p>\n

IV. Answer the following questions in a word\/ sentence (each question carries 1 mark)<\/p>\n

Question 1.
\nState the need for investment in human capital.
\nAnswer:
\nThere is a need to undertake investments in human capital. It is necessary to invest in human resources to make them more innovative, productive and useful by investing in their education, health and training. The government is taking many steps to educate, train and protect the health of the population to make it qualitative for economic development.<\/p>\n

Question 2.
\nWhy individuals spend money on education?
\nAnswer:
\nInvestment in education is considered one of the main sources of human capital formation. Spending on education by individuals is similar to spending on capital goods by companies to increase their profits in future. Similarly, individuals invest in education in order to increase their earnings in the front of money income in future. Investment in education also promotes individual development which ultimately promotes the overall economic growth of the country.<\/p>\n

Question 3.
\nExpand NCERT.
\nAnswer:
\nNational Council of Educational Research and Training.<\/p>\n

\"1st<\/p>\n

Question 4.
\nState the reasons for migration.
\nAnswer:
\nPeople migrate in search of jobs that bring them higher income than what they get in their native places. Unemployment is the main reason for rural-urban migration in India.<\/p>\n

Question 5.
\nExpand UGC.
\nAnswer:
\nUniversity Grants Commission.<\/p>\n

Question 6.
\nWhat was the literacy rate of India as per the 2001 census?
\nAnswer:
\nThe literacy rate of India as per the 2001 census was 65.2%(2011 census 74%).<\/p>\n

Question 7.
\nExpand ICMR.
\nAnswer:
\nIndian Council of Medical Research.<\/p>\n

IV. Answer the following questions in four sentences (each question carries 2 marks)<\/span><\/p>\n

Question 1.
\nState the meaning of human capital. (S-2018)
\nAnswer:
\nHuman capital refers to that part of the population that possesses skills, knowledge, education and experience. It also includes the ability of human beings to give their best and their ability to create economic value for things.<\/p>\n

\"1st<\/p>\n

Question 2.
\nWhat are the two major sources of human capital in a country?
\nAnswer:
\nEducation and Health are two main sources of human capital. Education raises the standard and quality of living of people. It increases the productive capacity and productivity- of the workforce by enhancing their skills. Health indirectly- helps in the economic development by supplying an active energetic and healthy workforce for better production.<\/p>\n

Question 3.
\nWhat are the indicators of educational achievement in a country?
\nAnswer:
\nThe indicators of educational achievements are as follows:<\/p>\n

    \n
  • Adult literacy level<\/li>\n
  • Primary7 education completion rate<\/li>\n
  • Youth literacy rate.<\/li>\n<\/ul>\n

    Question 4.
    \nBring out the differences between human capital and human development.
    \nAnswer:<\/p>\n\n\n\n\n\n\n\n
    Human Capital<\/strong><\/td>\nHuman Development<\/strong><\/td>\n<\/tr>\n
    1. It means investing in human beings as we do in physical capital in order to get future returns in the font of higher productivity and earnings<\/td>\n1. It refers to the overall development of human beings which includes economic, social, political and spiritual aspects of their living.<\/td>\n<\/tr>\n
    2. It considers education and health as the means to increase labour productivity<\/td>\n2. It is based on the idea that education and health are integral to human wellbeing<\/td>\n<\/tr>\n
    3. It treats human beings as a means to an end. the end is the increase in productivity<\/td>\n3. It treats human beings as ends themselves<\/td>\n<\/tr>\n
    4. It is a narrow concept<\/td>\n4. It is a broader concept<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

    Question 5.
    \nWhat factors contribute to human capital formation?
    \nAnswer:
    \nThe factors which contribute to human capital formation are as follows:<\/p>\n

      \n
    • Expenditure on education<\/li>\n
    • Expenditure on health<\/li>\n
    • Expenditure on training<\/li>\n
    • Expenditure on information<\/li>\n
    • Migration.<\/li>\n<\/ul>\n

      \"1st<\/p>\n

      Question 6.
      \nWhat are the various forms of health expenditures? (N-2018)
      \nAnswer:
      \nThe various forms of health expenditures as follows:<\/p>\n

        \n
      • Preventive medicine (vaccination)<\/li>\n
      • Curative medicine (medical intervention during illness)<\/li>\n
      • Social medicine (spread of health awareness)<\/li>\n
      • Provision of clean drinking water and good sanitation.<\/li>\n<\/ul>\n

        VI. Answer the following questions in twelve sentences (each question carries four marks)<\/span><\/p>\n

        Question 7.
        \nEducation is considered to be an important input for the development of the nation. How?
        \nAnswer:
        \nIt is a well-known fact that the work skill of an educated person is more than that of an uneducated, person and that skilled labour always generates more income than unskilled labour. The contribution of an educated person to economic growth is more than that of an illiterate person.<\/p>\n

        Education provides knowledge to understand changes in society and scientific advancements and facilitate inventions and innovations. Further, the availability of an educated labour force facilitates adaptation to new technologies.<\/p>\n

        To sum up, education is considered as an important input for the development of a nation in the following ways:<\/p>\n

          \n
        • It gives a person the capacity to earn higher earnings.<\/li>\n
        • It provides knowledge to understand the changes taking place in society<\/li>\n
        • It encourages innovations and inventions<\/li>\n
        • It facilitates the development and adoption of new techniques of production.<\/li>\n<\/ul>\n

          Question 2.
          \nHow does investment in human capital contribute to growth?
          \nAnswer:
          \nEconomic growth refers to an increase in real national income of a country over a period of time and human capital refers to skills and knowledge imbibed in human beings.<\/p>\n

          We know that the work skill of an educated person is more than that of an illiterate person and that the former generates more income than the latter. The contribution of the educated person to economic growth is more than that of an uneducated person.<\/p>\n

          Health is also an important factor for economic growth as a healthy person could provide uninterrupted output for a longer period of time.<\/p>\n

          \"1st<\/p>\n

          Human capital contributes substantially not only towards increasing labour productivity but also stimulates innovations and creates the ability to absorb new technologies.<\/p>\n

          Therefore, a higher rate of human capital foundation definitely contributes more towards the country\u2019s economic growth.<\/p>\n

          Question 3.
          \nBring out the need for on-the-job training for a person.
          \nAnswer:
          \nOn-the-job training is nothing but an arrangement of training in which workers are given an opportunity7 to obtain skills while working. It includes the following:<\/p>\n

            \n
          • Providing training to workers in the industry itself<\/li>\n
          • Arranging training facilities outside the industry i.e., off-campus training<\/li>\n
          • Providing online training and arranging satellite programmes.<\/li>\n
          • Arranging excursion to industrially advanced regions and providing hands-on training. The on-the-job training facility helps human capital formation in the following ways:<\/li>\n
          • The employees cum trainees get ample time for learning new methods of production under the supervision of skilled workers<\/li>\n
          • The employees\u2019 get extra technical skill without incurring any expenditure<\/li>\n
          • The employees will get adjusted to technical advancements and get promotion in their jobs<\/li>\n
          • It helps in undertaking innovations.<\/li>\n<\/ul>\n

            Question 4.
            \nHow government organisations facilitate the functioning of schools and hospitals in India?
            \nAnswer:
            \nThe government organizations facilitate the functioning of schools and hospitals i.e., education and health in India as follows:
            \n(a) Education sector: In India, the ministries of education at die Union and State level, Departments of Education and various organizations like the National Council of Educational Research and Training, University Grants Commission and All India Council of Technical Education facilitate institutions that come under the education to provide primary7, secondary, graduate and post-graduate and technical education respectively.<\/p>\n

            (b) Health sector: The ministries of health at the Union and State level, Departments of health and various organizations like the Indian Council for Medical Research facilitate institutions that come under tire health sector.<\/p>\n

            \"1st<\/p>\n

            Further, as basic education and health care are considered as Re-fundamental rights of the citizens, it is essential that the Government should provide education and health services free of cost for the deserving citizens and those from the socially oppressed classes.<\/p>\n

            Question 5.
            \nExplain the need for acquiring information relating to health and education expenditures.
            \n(Board Paper)
            \nAnswer:
            \nThe majority of people spend huge amounts to acquire information relating to the labour market and other markets like education and health.<\/p>\n

            For instance, people want to know the level of salaries associated with various types of jobs, whether the educational institutions provide the right type of employable skills lands at what cost. This type of information is required to make decisions regarding investments in human capital and efficient utilisation of the acquired human capital stock.<\/p>\n

            Expenditure incurred for acquiring information relating to the labour market and other markets is also a source of human capital formation.<\/p>\n

            In simple words, people spend money to acquire information for the following reasons:<\/p>\n

              \n
            • To know the labour market (about salary’, types of jobs available, schools and colleges for the right type of employable skills-based education) and other markets like education and health.<\/li>\n
            • They spend on the above information to make decisions regarding investments in human capital and for efficient utilization of acquired human capital stock.<\/li>\n<\/ul>\n

              \"1st<\/p>\n

              Question 6.
              \nDiscuss the need for promoting women\u2019s education in India.
              \nAnswer:
              \nThe difference in the literacy rates between males and females is narrowing signifying a positive development in general equality. There is a need to promote education for women in India on the following grounds:<\/p>\n