Plus One Economics Chapter Wise Questions and Answers Chapter 5 Human Capital Formation in India

Kerala Plus One Economics Chapter Wise Questions and Answers Chapter 5 Human Capital Formation in India

Plus One Economics Human Capital Formation in India One Mark Questions and Answers

Question 1.
As per 2011 census, the literacy rate in India was.
(i) 74%
ii) 78%
(iii) 80%
(iv) 82%
Answer:
(i) 74%

Question 2.
Which among the following is related to health sector?
(i) UGC
(ii) NCERT
(iii) ICMR
(iv) AICTE
Answer:
(iii) ICMR

Question 3.
The state in which the literacy rate is the highest in the country is ……………..
(i) Delhi
(ii) Bihar
(iii) Mizoram
(iv) Kerala
Answer:
(iv) Kerala

Question 4.
The Adult literacy rate among females in India in the year2000 was ………………..
(i) 68.4%
(ii) 61.9%
(iii) 45.4%
(iv) 37.9%
Answer:
(iii) 45.4%

Question 5.
State true or false:
‘New Educational Policy was announced in 1987-88’.
Answer:
True.

Question 6.
Which state is having highest literacy rate in India according to 2011 census?
(i) Kerala
(ii) Punjab
(iii) Manipur
(iv) Hariyana
Answer:
(i) Kerala

Plus One Economics Human Capital Formation in India Two Mark Questions and Answers

Question 1.
Mention two government organizations that regulate the health and education sector.
Answer:
1. Organizations that regulate the education sector:

• The ministries of education at the union and state level
• National Council of Educational Research and Training (NCERT)
• University Grants Commission (UGC)
• All India Council of Technical Education (AICTE)

2. Organizations that regulate the health sector:

• The ministries of health at the union and state level
• Indian Council for Medical Research (ICMR)

Question 2.
Classify the following into preventive medicines, curative medicines, and social medicines.

1. Provision of clean drinking water.
2. Good sanitation
3. Medical intervention during illness
4. Vaccination

Answer:

• Preventive Medicine – Vaccination
• Curative Medicine – Medical intervention during illness.
• Social Medicine – Provision of clean drinking water, good sanitation

Question 3.
Classify the following into the features of human capital and human development

1. Education and health are considered as a means to increase human productivity.
2. Education and health are integral to human well-being.
3. Human beings are treated as a means to an end.
4. Human beings are treated as ends in themselves.

Answer:
a. Human Capital:
1. Education and health are considered as a means to increase human productivity.
3. Human beings are treated as a means to an end.
b. Human development:
2. Education and health are integral to human well being.
4. Human beings are treated as ends in themselves.

Question 4.
Name the two major sources of human capital in a country.
Answer:
Two major sources of human capital in a country are:

1. Investment in education and
2. Investment in health.

Question 5.
Bring out the need for on-the-job training for a person.
Answer:
Firms give on-the-job-training to enhance the productive skills of the workers so as to enable them to absorb new technologies and modern ideas. It can be given in two ways:

1. Workers may be trained in the firm itself under the assistance of an experienced worker.
2. Workers may be sent off the firm campus for the training.

Plus One Economics Human Capital Formation in India Three Mark Questions and Answers

Question 1.
Give full form of the following

1. GER
2. SSA

Answer:

1. GER – Gross Enrolment Ratio
2. SSA – Sarva Shiksha Abhiyan

Question 2.
Find the odd one out

1. Roads, factory, teachers, power plants
2. Teachers, doctors, ports, scientists
3. UGC, NCERT, SCERT, NREGP

Answer:

1. Teachers. Others are physical capital
2. Ports. Others are human capital
3. NREGP. Others are educational regulatory institutions

Question 3.
“Adequate education and training to farmers can raise productivity in farms.”
Do you agree or not? Substantiate your answer.
Answer:
Yes, I do agree to the statement that adequate education and training to farmers can raise productivity in farms.
This is because the attainment of more information and training will help the farmers to attain more knowledge about new methods of farming and plant protection. The application of the new knowledge in the farms will enable them to raise productivity in the farms so that the overall productivity in the agricultural sector can be improved.

Question 4.
What do you mean by Human Development Index? How it is calculated?
Answer:
The quality of life index prepared and published by United Nations Development Programme is termed as Human Development Index. HDI studies the following three basic human capabilities:

1. Living a Long Life (Longevity)
2. Being Knowledgable (Educational Attainment)
3. Enjoying decent standard of living (Real Per Capita GDP)

In orderto calculate HDI we are required to construct the following three indices.
1. Life expectancy index: This index measures the degree of the achievement of the country regarding the expectancy of the people in a country. The value of index varies between 0-1.

2. Educational attainment index: This index measures the level of educational attainment of the people. The value of this index also varies between 0-1. Higher index shows higher level of educational attainment.

3. Real GDP per capita index: Real GDP is calculated at constant price. It shows the changes in physical production in real terms. Per capita, real GDP is GDP apanstant price divided by population. It is better measure of the quality of life of the people as compared to per capita income.

Plus One Economics Human Capital Formation in India Four Mark Questions and Answers

Question 1.
Point out the major problems of educational development in India.
Answer:
The major problems of educational development in India are pointed out below.

• Wastage of resources.
• Illiteracy
• Disparities in standard
• Lack of funds
• Problems of brain drain.

Question 2.
Discuss the following as a resource of human capital formation

1. Health infrastructure
2. Expenditure on migration

Answer:
1. Health infrastructure:
Expenditure on health is an important source of human capital formation. Health expenditure directly increases the supply of healthy labour force and is a source of human capital formation.

Preventive medicine, social medicine, curative medicine, and provision of clean drinking water and good sanitation are the various forms of health expenditure. In short provision of health facilities directly improve the efficiency of human capital.

2. Expenditure on migration:
Existence of unemployment is the main reason for the rural-urban migration in India. People migrate in search of jobs. Technically qualified persons migrate to other countries because of higher salaries that they may get in other countries.

Migration in any of these cases involves cost of transport, higher cost of living in the migrated places. The enhanced earnings in the new place outweigh the cost of migration. Hence expenditure on migration is a source of human capital formation.

Question 3.
Bring out the differences between human capital and human development.
Answer:

Question 4.
The following table shows the indicators of development in Education and health sectors. Analyze the table and make inference.

Answer:
1. The per capita income of the country was Rs.3687 in the year 1951. This value gradually increased over the years and in 2001, the real per capita income became Rs. 10306. this increase is a good sign of development as far a developing country like India is concerned.

2. Crude Death rate (Per 1000 population) of the country Was 25.1 in1951 which has fallen to 8.1 in 2001. Similarly, the infant mortality rate in India also declined significantly from 146 in 1951 to 63 in 2001. This shows the developments undergone in the health sector of the country.

3. Another important achievement in the field of education is rising literacy rate. It was 16.67% in 1951 whereas, the rate increased to 65.2% in 2001. The above table shows India’s achievements in the field of education, health and per capita income since independence. In all these three fields, country made very significant development during the last 50 years.

Plus One Economics Human Capital Formation in India Five Mark Questions and Answers

Question 1.
Trace the relationship between human capital and economic growth.
Answer:
Economic growth means the increase in real national income of a country. The contribution of the educated person to economic growth is more than that of an illiterate person. Education and health are important factors of economic growth.

Human capital contributes not only towards increasing labour productivity but also stimulates innovations and creates the ability to absorb new technologies. Education provides knowledge to understand changes in society and scientific advancements. Higher-income causes building of high level of human capital and also the high level of human capital causes growth of income.

Question 2.
“The percentage of ‘education expenditure of total government expenditure’ indicates the importance of education in the scheme of things before the government”. Critically analyze the changes in government spending on education.
Answer:
The government is supposed to make expenditure on education so as to improve the efficiency of human capital in the country. The percentage of ‘education expenditure of GDP’ expresses how much of our income is being committed to the development of education in the country.

During 1952-2002, education expenditure as percentage of total government expenditure increased from 7.92 to 13.17 and as percentage of GDP increased from0.64 to 4.02. Throughout this period the increase in education expenditure has not been uniform and there has been irregular rise and fall.

In addition to lowering expenditure on education, there exists a regional disparity in case of spending on education in various parts of the country. For example, the per capita education expenditure differs considerably across states from as high as Rs 3,440 in Lakshadweep to as low as Rs 386 in Bihar. This leads to differences in educational opportunities and attainments across states.

Thus it can be concluded that the government is not giving proper attention on the education sector. The relevance of education in the development of the country is to be recognized and therefore, given top priority to the expenditure in this sector.

Question 3.
“Physical capital is well distinguished from human capital”. Narrate them distinguishing points of physical capital and human capital.
Answer:
Physical capital is well distinguished from human capital. The major points of differences are given below.

1. Physical capital is tangible and can be easily sold in the market like any other commodity. Human capital is intangible; it is endogenously built in the body and mind of its owner.

2. Human capital is not sold in the market; only the services of human capital are sold and hence the necessity of the owner of the human capital to be present in the place of production. The physical capital is separable from its owner, whereas, human capital is inseparable from its owner.

3. The two forms of capital differ in terms of mobility across space. Physical capital is completely mobile between countries except for some artificial trade restrictions. Human capital is not perfectly mobile between countries as movement is restricted by nationality and culture.

4. In the case of human capital, depreciation takes place with ageing but can be reduced, to a large extent, through continuous investment in education, health, etc. This investment also facilitates the human capital to cope with change in technology which is not the case with physical capital.

5. Nature of benefits flowing from human capital are different from that of physical capital. Human capital benefits not only the owner but also society in general. This is called external benefit. An educated person can effectively take part in a democratic process and contribute to the socio-economic progress of a nation. A healthy person, by maintaining personal hygiene and sanitation, stops the spread of contagious diseases and epidemics.

6. Human capital creates both private and social benefits, whereas physical capital creates only private benefit. That is, benefits from a capital good flow to those who pay the price for the product and services produced by it.

Question 4.
Make some argument in favour of the need for different forms of government intervention in education and health sectors.
Answer:
Both education and health have been considered as important for human capital formation. The provision of basic education and health facilities has been accepted as a goal in All societies.

It is important that these facilities be made available free for the poor classes who can not afford them in order to ensure better skills and health of manpower. However, the private sector will not be forthcoming in making large investments in nonprofitable or free distribution of such services. Hence, the government has to play an important role.

Plus One Economics Chapter Wise Questions and Answers