Every question from this NCERT chapter, with a detailed explanation.
"A sick labourer without access to medical facilities is compelled to abstain from work and there is loss of productivity." This statement highlights the importance of which source of human capital?
With reference to the concept of ‘Human Capital’, consider the following statements: 1. It refers solely to the physical strength of the workforce. 2. Unlike physical capital, human capital is not perfectly mobile between countries. 3. Human capital formation is not solely a conscious decision of the possessor. Which of the statements given above is/are correct?
Consider the following statements regarding the sources of human capital formation: 1. Social medicine refers to the use of medicine for social gatherings. 2. Preventive medicine includes vaccination. 3. Provision of clean drinking water is unrelated to health expenditure. Which of the statements given above is/are correct?
With reference to ‘On-the-job training’ as a source of human capital, consider the following statements: 1. It may involve training workers within the firm or sending them for off-campus training. 2. Firms incur expenses on training as a charity without expecting returns. 3. Workers are often required to work for a specific period after training. Which of the statements given above is/are correct?
Consider the following statements regarding the relationship between human capital and economic growth: 1. Empirical evidence proves a clear cause-and-effect relationship from human capital growth to economic growth in developing countries. 2. Higher income causes the building of a high level of human capital and vice versa. 3. Convergence in human capital measures has not led to a convergence in per capita real income. Which of the statements given above is/are correct?
Consider the following statements regarding the 'Human Capital' perspective: 1. Investment in education is productive only if it enhances output. 2. Human beings are ends in themselves. 3. It focuses solely on human welfare regardless of productivity. Which of the statements given above is/are correct?
With reference to the distinction between ‘Human Capital’ and ‘Human Development’, consider the following statements: 1. Human capital considers education and health as means to increase labour productivity. 2. Human development considers education and health as irrelevant to human well-being. 3. In the human capital perspective, investment in health is always productive regardless of output. Which of the statements given above is/are correct?
Which of the following costs are associated with migration as a source of human capital formation? 1. Cost of transport. 2. Migration always leads to a lower cost of living. 3. Psychic costs of living in a strange socio-cultural setup.
Which of the following statements correctly describes the nature of benefits flowing from Human Capital compared to Physical Capital?
With reference to the differences between physical and human capital, consider the following statements: 1. Physical capital is intangible and cannot be sold in the market. 2. Human capital is intangible and cannot be sold in the market; only its services are sold. 3. Physical capital is inseparable from its owner, whereas human capital is separable. Which of the statements given above is/are correct?
Why is government intervention considered essential in the education and health sectors in India? 1. These sectors create both private and social benefits. 2. Individual consumers always have complete information about quality and cost. 3. Expenditures in these sectors have no long-term impact. Which of the statements given above is/are correct?
Consider the following statements regarding the depreciation of capital: 1. Physical capital depreciates with time due to continuous use. 2. Human capital depreciation cannot be reduced by any means. 3. Change in technology makes physical capital obsolete, but human capital can cope with change through investment. Which of the statements given above is/are correct?
Expenditure on 'on-the-job training' is considered a source of human capital formation primarily because:
Consider the following statements regarding the expenditure on information as a source of human capital formation: 1. People never spend money to acquire information relating to the labour market. 2. Information is necessary to make decisions regarding investments in human capital. 3. Efficient utilization of acquired human capital stock depends on market information. Which of the statements given above is/are correct?
"Human capital is endogenously built in the body and mind of its owner." This characteristic implies that:
Which one of the following is NOT typically considered a direct source of human capital formation?
What is the primary economic driver for the migration of technically qualified persons, such as engineers and doctors, to developed countries?
With reference to the concept of 'External Benefit' in capital formation, consider the following statements: 1. Physical capital creates only private benefits for the owner. 2. Human capital creates only private benefits for the individual. 3. An educated person contributing to the democratic process is an example of private benefit. Which of the statements given above is/are correct?
The observation that "the Indian education pyramid is steep" implies that:
With reference to the financing of education in India, consider the following statements: 1. The government spends more on tertiary education per student than on elementary education. 2. Economists argue that financial resources should be transferred from elementary to tertiary education. 3. Expansion of school education requires more teachers trained in higher educational institutions. Which of the statements given above is/are correct?
Which of the following best explains why 'Physical Capital' formation is mainly an economic and technical process?
Consider the following statements regarding the role of 'Human Capital' in economic growth: 1. It hinders innovations and inventions. 2. It facilitates the adaptation of new technologies. 3. It increases labour productivity. Which of the statements given above is/are correct?
The higher labour skill possessed by an educated individual compared to an uneducated one primarily leads to:
With reference to the 'Gender Equity' in education in India, consider the following statements: 1. Women's education has an adverse impact on fertility rates. 2. The differences in literacy rates between males and females are narrowing. 3. Improving women's education reduces their economic independence. Which of the statements given above is/are correct?
With reference to 'India as a Knowledge Economy', consider the following statements: 1. The value of IT-based services depends greatly on the existing level of economic development. 2. E-governance is considered obsolete. 3. The Indian software industry has shown an impressive record over the past two decades. Which of the statements given above is/are correct?
Which of the following is a characteristic of 'Physical Capital' but NOT 'Human Capital'?
Consider the following statements regarding the measurement of Human Capital and Economic Growth: 1. Education measured in years of schooling always reflects the quality of education. 2. Health services measured in monetary terms do not always reflect the true health status. 3. Measurement problems make it difficult to prove the causality between human capital and economic growth. Which of the statements given above is/are correct?
Why do firms insist that workers should work for a specific period after on-the-job training?
Which of the following is a reason for the 'monopoly power' of private providers in education and health services?
Consider the following statements regarding the 'Federal' nature of education and health spending in India: 1. Expenditures are carried out by both Union and State Governments. 2. Local governments like Municipal Corporations have no role in education spending. 3. The Constitution mentions functions to be carried out by each level of government. Which of the statements given above is/are correct?
Which of the following is an example of 'Information' as a source of human capital? 1. Knowing the level of salaries is irrelevant to human capital. 2. Knowing the cost of educational institutions. 3. Knowing the employable skills provided by institutions.
Human capital formation is partly a social process. This implies that: Statements: 1. It is entirely independent of the individual's choice. 2. Decisions regarding investment in education are influenced by peers and society. 3. It is completely unrelated to the level of human capital formed at the school level. Which of the statements given above is/are correct?
Which one of the following is NOT typically cited as a direct benefit of education?
Consider the following statements regarding the 'Human Development' approach: 1. It argues that human welfare should be increased through investments in education and health. 2. It considers education and health valuable only if they result in higher labour productivity. 3. It considers human welfare to be the ultimate goal of all economic activities. Which of the statements given above is/are correct?
With reference to 'On-the-job training', consider the following statements: 1. It is exclusively conducted in classroom settings outside the workplace. 2. It may take the form of off-campus training. 3. It may involve observing skilled workers to learn specific technical skills. Which of the statements given above is/are correct?
Consider the following statements regarding the 'Convergence' of human capital and income: 1. There is a clear convergence of per capita real income between developed and developing countries. 2. There is convergence in human capital measures like education between developed and developing countries. Which of the statements given above is/are correct?
Expenditure on migration is considered a source of human capital formation because:
The "steep" nature of the Indian education pyramid indicates that:
Consider the following statements regarding 'Unemployment among educated youth' in India: 1. Unemployment is higher among educated persons compared to less educated ones. 2. Rural female graduates face the lowest unemployment rates. 3. The government has completely withdrawn from regulating higher education institutions. Which of the statements given above is/are correct?
With reference to the 'External Benefits' of human capital, consider the following statements: 1. A healthy person stops the spread of contagious diseases, benefiting society. 2. An educated person cannot contribute to the socio-economic progress of a nation. 3. Benefits from physical capital flow only to those who pay the price for the product. Which of the statements given above is/are correct?
The need for government spending on education and health is justified by which of the following arguments? 1. Private providers generally offer services at prices lower than government institutions. 2. Investments in these sectors have long gestation periods. 3. Basic education and health are rights of citizens.
Which one of the following is NOT a mechanism through which investment in human capital contributes to economic growth?