Class 12 Economics MCQ Chapter 14 Human Capital Formation in India

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Class 12 Economics MCQ Chapter 14 Human Capital Formation in India

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Human Capital Formation in India

Chapter: 14

PART – B: INDIAN ECONOMIC DEVELOPMENT

1. Human capital refers to the stock of.

(i) Machines and tools.

(ii) Skills, abilities, knowledge, and education in people.

(iii) Natural resources.

(iv) Financial assets.

Ans: (ii) Skills, abilities, knowledge, and education in people.

2. Human capital formation means.

(i) One-time purchase of machinery.

(ii) Process of adding to human capital over time.

(iii) Building more factories only.

(iv) Increasing foreign exchange reserves.

Ans: (ii) Process of adding to human capital over time.

3. Human capital is primarily as.

(i) Tangible asset.

(ii) Flow concept only.

(iii) Stock of capabilities embodied in humans.

(iv) Natural endowment.

Ans: (iii) Stock of capabilities embodied in humans.

4. Human capital and human development differ because human development treats people as.

(i) Means to production.

(ii) Ends in themselves.

(iii) Only labour inputs.

(iv) Physical assets.

Ans: (ii) Ends in themselves.

5. Physical capital is best defined as.

(i) Knowledge and skills of workers.

(ii) Produced assets used to produce other goods and services.

(iii) Mineral deposits in a country.

(iv) Government tax revenue.

Ans: (ii) Produced assets used to produce other goods and services.

6. Which is tangible.

(i) Human capital.

(ii) Social capital.

(iii) Physical capital like machines.

(iv) Knowledge.

Ans: (iii) Physical capital like machines.

7. Which is inseparable from its owner.

(i) A tractor.

(ii) A machine tool.

(iii) Human capital.

(iv) A building.

Ans: (iii) Human capital.

8. International mobility is most restricted for.

(i) Physical capital.

(ii) Human capital.

(iii) Financial capital.

(iv) Goods.

Ans: (ii) Human capital.

9. Depreciation of human capital can be mitigated mainly by.

(i) Tax cuts.

(ii) Continuous education and health investments.

(iii) Higher tariffs.

(iv) Currency appreciation.

Ans: (ii) Continuous education and health investments.

10. Human capital generates.

(i) Only private benefits.

(ii) Only public losses.

(iii) Both private and social benefits.

(iv) No measurable benefits.

Ans: (iii) Both private and social benefits.

11. Which is not a listed source of human capital formation.

(i) Expenditure on education.

(ii) Expenditure on health.

(iii) Expenditure on acquiring information.

(iv) Import of crude oil.

Ans: (iv) Import of crude oil.

12. Health expenditures include.

(i) Preventive, curative, and social medicine.

(ii) Only hospital construction.

(iii) Only doctor salaries.

(iv) Only medical insurance.

Ans: (i) Preventive, curative, and social medicine.

13. On-the-job training primarily.

(i) Reduces worker productivity.

(ii) Raises skills and efficiency.

(iii) Eliminates need for education.

(iv) Only increases costs with no returns.

Ans: (ii) Raises skills and efficiency.

14. Migration is treated as human capital investment because.

(i) It always reduces income.

(ii) Earnings gains typically exceed migration costs.

(iii) It decreases labour productivity.

(iv) It lowers information access.

Ans: (ii) Earnings gains typically exceed migration costs.

15. Spending on labour-market information helps individuals to.

(i) Avoid all education costs.

(ii) Make better choices about education and jobs.

(iii) Emigrate without documents.

(iv) Replace physical capital.

Ans: (ii) Make better choices about education and jobs.