MCQ OF HUMAN CAPITAL FORMATION

 

Q. AICTE stands for

A.  All India Commission for Technical Education

B.  All India Council for Technology Education

C.  All India Council for Technical Education

D.  All India Commission for Technology Education

Answer : Option C All India Council for Technical Education

Explanation:- AICTE is a statutory body and a national level council for Technical Education under the Ministry of Human Resource Development, India. It is responsible for proper planning and coordinated development of technical and management systems of education in India

 

Q – The stock of skill, ability, expertise, education and knowledge in a nation at a point of time known as

A.  Human Development
B.  None
C.  Human Resource
D.  Human Capital

Answer : Option D Human Capital

Explanation: This definition states what human capital means. Human capital refers to the skills, knowledge and experience of an individual or a population at large.

 

Q Machines and buildings are

A. Human capital
B.  None of these
C.  Physical capital
D.  Natural capital

Answer : Option C.  Physical capital

Explanation: Physical capital refers to tangible capital like plant and machinery, buildings, computers, etc which are built by humans to be used for productive purposes

 

Q. In how many stages of education are there in India

A.  1

B.  2

C.  4

D.  3.0

Answer : Option D  3.0

 

Q. Planning commission prepared a report regarding education over the next two decades named:

A.  India education 2020

B.  India World 2020

C.  India Vision 2020

D.  India Growth 2020

Answer : Option C  India Vision 2020

Explanation: India Vision 2020 is a report prepared by the Planning Commission as a vision statement and encompasses various segments of the country’s development.

 

Q. Secondary level education for age group

A.  12-18

B.  13-15

C.  18-21

D.  15-18

Answer : Option A  12-18

Explanation: In India, the secondary level education comprises of students between the age groups of 12 to 18 which includes classes 6 to 12.

 

Q. The most important indicator of the status of education of a country is the

A.  Death rate

B.  Population rate

C.  Birth rate

D.  Literacy rate

Answer : Option D  Literacy rate

Explanation: The literacy rate is defined by the percentage of the population of a given age group that can read and write

 

Q. Which of the following are indicators of HDI are

A.  Longevity

B.  Educational attainment

C.  Standard of living

D.  All of these

Answer : Option D  All of these

Explanation: Indicators of Human Development Index are education, life expectancy (longevity) and per capita income (standard of living).

 

Q. Illiteracy is more among

A.  None

B.  Boys

C.  Both

D.  Girls

Answer : Option D  Girls

Explanation: Poverty, ignorance of parents, lack of facilities in rural areas are some of the major causes for rampant illiteracy among girls in India.

 

Q. Source of human capital formation is

A.  Expenditure on Industries

B.  Expenditure on Health

C.  Expenditure on Building

D.  Expenditure on Textiles

Answer : Option B Expenditure on Health

Explanation: Health and education are two integral aspects in human capital formation. It is only a healthy person who can contribute to society and the nation. Therefore expenditure on health is important to build and sustain a healthy nation.

 

Q. People of which age group are treated as productive labour force

A.  60-70

B.  15-60

C.  15-35

D.  0-6

Answer : Option B  15-60

Explanation: People falling in the age group of 15-60 have the education and health and can be trained on-the-job as well. They thus contribute extensively to the society.

 

Q. Human capital can be increased by incurring expenditure on

A.  All of these

B.  Improvement in technology

C.  Increase in GDP

D.  Improvement of health

Answer : Option D  Improvement of health

Explanation: Health is a primary source for development of human capital. Only healthy persons will be willing to work and contribute to the society.

 

Q. Following are the educationally backward states except

A.  Rajasthan

B.  Uttar Pradesh

C.  Mizoram

D.  Bihar

Answer : Option C  Mizoram

Explanation: Mizoram has a literacy rate of 91.58% according to the 2011 census. It is the second highest state in India in terms of literacy.

 

Q. It controls and guides higher education

A.  IGNOU

B.  None

C.  NCERT

D.  UGC

Answer : Option D  UGC

Explanation: University Grants Commission was established in November 1956 by the Government of India through an act of Parliament for the coordination, determination and maintenance of standards of university education in India.

 

Q. HDI index rates all countries on a scale of

A.  0 to 10

B.  0 to 1

C.  0 to 5

D.  1 to -1

Answer : Option B  0 to 1

Explanation: The Human Development Index is a composite statistic of life expectancy, education and percapita income indicators and ranks countries accordingly. India falls under 0.600-0.649 category. Canada, the United States and Australia are some examples of 0.900-1 category.

 

Q. In India, GER figures are available for

A.  Elementary education

B.  All of these

C.  Senior Secondary education

D.  University level education

Answer : Option B  All of these

Explanation: The Gross Enrolment Ratio is available for all levels of education in India. The website data.gov.in contains information relating to the same.

 

Q. Which programme started in 1994

A.  District Primary Education Programme

B.  Kasturba Gandhi Balika Vidyalaya

C.  Sarva Siksha Abhiyan

D.  Mid-day meal

Answer : Option A  District Primary Education Programme

Explanation: The District Primary Education Program is sponsored by the Central Government of India with an objective to revitalize and universalis the primary education. It was initiated in 1994.

 

Q. People as a resource means

A.  None

B.  Country’s natural capital in terms of their existing productive skills

C.  Country’s fixed capital in terms of their existing productive skills

D.  Country’s working capital in terms of their existing productive skills

Answer : Option D  Country’s working capital in terms of their existing productive skills

Explanation: Human capital is always evolving with respect to skiils, education and health. For purposes of measurement, the existing productive skill sets are taken into account.

 

Q. Human capital is similar to physical capital because

A.  Both

B.  none

C.  They are factors of production

D.  Raise nation’s ability to produce goods and services

Answer : Option A  Both

Explanation: The human capital is the brain behind the technicalities and processes of the physical capital. Both are needed for a society or nation to grow.

 

Q. Human capital is investment that brings

A.  Both

B.  Qualitative improvement in labour

C.  Quantitative improvement in labour

D.  None

Answer : Option B  Qualitative improvement in labour

Explanation: Quality of the labour force is more important than the quantity. Educated and healthy labour force can contribute better to the development of the nation.

 

Q. Physical capital refers to

A.  All of these

B.  Process of acquiring and increasing the number of persons who have skill

C.  Stock/shares of the companies

D.  Stock of produced means of production

Answer : Option D  Stock of produced means of production

Explanation: Physical capital refers to man-made goods that help in the production process. It is one of the four main factors of production. Examples of physical capital are plant and machinery, buildings, computers, etc.

 

Q. First stage of education is up to

A.  Class 10

B.  Class 8

C.  Class 9

D.  Class 5

Answer : Option B  Class 8

 

Q. ICMR regulate the

A.  Education sector

B.  Banking sector

C.  Tourism Sector

D.  Health Sector

Answer : Option D  Health Sector

Explanation: The Indian Council of Medical Research is the apex body in India for the formulation, coordination and promotion of medical research and health aspects.

 

Q. Navodaya Vidyalaya started in

A.  1988-89

B.  1985-86

C.  1989-90

D.  1986-1987

Answer : Option B  1985-86

Explanation: Jawahar Navodaya Vidyalay are Government supported schools in Indian districts, to provide education and scope for talented children from rural areas. The idea was conceived by former Prime Minister Rajiv Gandhi and accordingly the first schools were set up in 1985-86 in two districts – Jhajjar (Haryana) and Amaravati (Maharashtra).

 

Q. he 86th Amendment to the Constitution of India deals with free and compulsory education for age groups

A.  0-14

B.  14-17

C.  0-11

D.  6-14

Answer : Option D  6-14

Explanation: The Constitution of India was amended to provide free education to all children between the age groups of 6-14.

 

Q. In 1950-51 India literacy rate was

A.  0.16

B.  0.12

C.  0.15

D.  0.18

Answer : Option D  0.18

 

Q. Human capital consists of

A.  Entrepreneurs

B.  Both workers and entrepreneurs

C.  Workers

D.  Entire population

Answer : Option D  Entire population

Explanation: Human capital includes the inherent and acquired skill sets of the entire population of a country. However, education, health, on-job training enhance the quality of human capital.

 

Q. A major problem faced by the human capital formation in India is

A. Rising population
B. Developed technology
C. Rising prices
D. Devaluation of currency

Answer : Option A  Rising population

Explanation: Human capital formation is a continuous process as there is scope for skill development, change in technology, better educational and health facilities. A rising population is a huge challenge especially in India where there is an increase in the number of people living below poverty line. These people become dependent on the government to provide basic facilities.

 

Q. Role of human capital formation in economic growth

A. Raises life expectancy
B. Improves quality of life
C. Innovative skills
D. All of these

Answer : Option D  All of these

Explanation: Human capital is productive only when it is educated, healthy and willing to learn new skill sets. All of these lead to economic growth and are therefore important.

 

Q.4  Literacy refers to

A.  All urban people
B.  All educated people
C.  All rural educated people
D.  The ability to read and write

Answer : Option D  The ability to read and write

Explanation : A literate is a person who has the ability to read and write.

 

Q. Following states have high literacy rate except

A.  Delhi
B.  Mizoram
C.  Rajasthan
D.  Kerala

Answer : Option C  Rajasthan

Explanation: Rajasthan has a literacy rate of 66.11 percent as of the 2011 census and is the least when compared t o Kerala, Delhi and Mizoram.

 

Q. GER stands for

A.  General Enrollment Ratio

B.  Gross Enrollment Ratio

C.  General Estimated Ratio

D.  Gross Education Ratio

Answer : Option B  Gross Enrollment Ratio

Explanation: The Gross Enrollment Ratio is a statistical measure of students enrolled in a specific level of education as a percentage of the population corresponding to that level of education. GER is used worldwide and also by the United Nations.

 

Q. A person becomes a human resource when he/she

A.  All of the these

B.  Belongs to particular age group

C.  Is able to work

D.  Is willing to work

Answer : Option A  All of the these

Explanation: It is true that human capital is effective only when individuals possess the skills to work, are healthy and therefore willing to work. Age of human capital is a measure of physical ability and experience.

 

Q. Which Five Year Plan stressed upon the importance of human capital

A.  7th

B.  8th

C.  6th

D.  5th

Answer : Option A  7th

Explanation:  The Seventh Five Year Plan had the development of human capital formation as its prime objective. India believed that the population could become an asset, if trained and educated on sound lines which would lead to economic and social growth.

 

Q. By 2005 , 1% of the world population in the age group 15-49 was affected by

A.  Cough

B.  Diarrhea

C.  HIV/AIDS

D.  Cholera

Answer : Option C  HIV/AIDS

Explanation: HIV is a virus that attacks the human immune system and makes it susceptible to infections and diseases. Preventive measures can be taken to reduce the spread of AIDS.

 

Q. NCERT was established in

A.  1962

B.  1963

C.  1961

D.  1960

Answer : Option C  1961

Explanation: The National Council Of Educational Research and Training was established by the Government of India in 1961 to assist and advice the Central and State Governments on qualitative improvement in school education.

 

Q. The movement started by national literacy mission is

A.  Education of children

B.  Education for all

C.  Education for life

D.  Education literacy

Answer : Option B  Education for all

Explanation: The National Literacy Mission was started by the Government of India in 1988 with an aim to educate all Indians and make India a 100 percent literate country.

 

Q. It is an apex body which provides academic and technical support for qualitative improvement of school education

A. None

B.  NCERT

C.  IGNOU

D.  UGC

Answer : Option B  NCERT

Explanation: The National Council Of Educational Research and Training was established in 1961 by the Government of India to assist and advise the Central and State Governments on qualitative improvement in school education.

 

Q. SSA started in

A.  2005

B.  2000

C.  2006

D.  2004

Answer : Option B   2000

Explanation: The Sarva Shiksha Abhiyan is an initiative by the Central Government in partnership with the State Governments to educate all children between the ages 6-14. It was started in the year 2000.

 

Q. Navodaya Vidyalayas were established to give modern education of a good standard, to talented students in

A.  Rural areas

B.  Urban areas

C.  None

D.  Both

Answer : Option A  Rural areas

Explanation: Navodaya Vidyalayas cater to the rural talent in India. They are established in every district with the purpose of providing a level playing ground to the children of the rural areas.

 

Q. Indicator/s of growth in the educational sector

A.  All of these

B.  Gross Enrollment Ratio

C.  Number of educational institutes

D.  Literacy rate

Answer : Option A  All of these

Explanation: Growth in education includes parameters like literacy rate, number of educational institutions and the student enrollment.

 

Q. Which of the following is not the feature of India Vision 2020 Report

A.  90% of literacy in India

B.  If we double the investments in education it will increase the country’s GDP per capita by four times

C.  100 % enrolment of all children of age group 6-14 years

D.  Importance of technical education

Answer : Option A  90% of literacy in India

Explanation: The India Vision 2020 Report visualize a 100% literacy in India by the year 2020.

 

Q. Human Development refers to

A. None
B. Both
C. Development of the individuals by acquiring good education
D. Consists of skills as used in the process of production

Answer : Option C  Development of the individuals by acquiring good education

Explanation: Good education is one of the major factors of human development.

 

Q. Which of the following is not an example of physical capital?

A.  Machinery
B.  Raw material
C.  Building
D.  Education and knowledge in people

Answer: Option D  Education and knowledge in people

 

Q.  Which one of the following is a reason for poor human capital formation in India?

A. Brain drain
B. Insufficient resources
C. High growth of population
D.  All of these

Answer: Option D  All of these

 

Q. How much educational cess has been imposed by the government on all Union taxes?

A. 1 %
B. 2%
C.  4%
D. 5%

Answer: Option B  2%

 

Q. Which one of the following is a major source of human capital formation in the country?

A. Expenditure on education
B. Expenditure on infrastructure
C. Expenditure on defense
D. Expenditure on energy

Answer: Option A  Expenditure on education

 

FILL IN BLANKS

Q. The objective of midday meal scheme is __________

A. to boost universalization of primary education
B. to boost the nutritional status of children in schools
C. to increase enrollment attendance and retention, and also improving the nutritional status of children in school
D. to boost universalization of upper primary level of education

Answer: Option C  to increase enrollment attendance and retention, and also improving nutritional status of children in school

Q. Human capital is a ________ process.

Answer: social

Q._______ is the reason for the rural-urban migration in India.

Answer: Unemployment

Q._______ capital is completely mobile between countries.

Answer: Physical

Q.________ means the increase in real national income of a country.

Answer: Economic growth.

Q. Human capital considers education and health as a means to increase ________

Answer: productivity.

Q. India has the potential to become a leading _______ economy.

Answer: knowledge-based

Q.______ is the prime funding authority for university education.

Answer: UGC

Q. Expenditure per student in ________ education is higher than that of elementary.

Answer: tertiary

Q. According to India Vision report 2020, _____ percent literate India is paramount importance to realise the vision for the country in 2020

A. 100
B. 80
C. 75
D. 60

Answer : Option A  100

Explanation: The Vision India Document envisages a 100% literacy rate to make India a developed country.

Q.________ five-year plan recognized the importance of human capital.

A.  Seventh
B.  Third
C.   Eight
D.  Sixth

Answer: Option A  Seventh

Q. If ____ capital represents production capacity of a nation, _____ capital is the cause that designs machines.

A. Human, Physical
B. Financial, Human
C. Physical, Human
D. Physical, Financial

Answer : Option C  Physical, Human

Explanation: Physical capital like plant and machinery, are tangible assets used in the production process. Human capital represents the brain behind the design and built of the machines.

Q. Educational attainment is measured by the two-third weighted average of the _____and one-third weight ______

A. adult gross literacy rate, mean years of schooling
B. adult literacy rate, mean years of secondary schooling
C. literacy rate, mean years of primary schooling
D. adult literacy rate, mean years of schooling

Answer : Option D  adult literacy rate, mean years of schooling

Q. Still ___ of population in India population is illiterate

A. Three fourth
B. Two fourth
C. One third
D. One fourth

Answer : Option D  One fourth

Explanation: As per the 2011 census, India’s literacy rate is 74.04%. So around 25% or one-fourth of our population is illiterate.

Q. To provide the educational facilities to the children of transferable central government employees _____ were established

A. Navodaya Vidayalas
B. Both
C. None
D. Kendriya Vidyalayas

Answer : Option D  Kendriya Vidyalayas

Explanation: The Kendriya Vidyalayas were established to cater to the educational needs of transferrable Central Government employees including Defence and Para military personnel by providing a common program of education.

 

Q.____ and ____ are the twin pillars on which rests the edifice of social sector reforms

A. Education and Poverty
B. Education and Health
C. Education and Infrastructure
D. Education and Employment

Answer : Option B  Education and Health

Explanation: Education and health are two major aspects of social sector reforms. An educated and healthy person can contribute positively to the growth of the society and vice-versa where, individual interest lies in collective interest.

 

State whether the following statements are True or False.

Q. Preventive medicine includes medical practices that are designed to avoid or avert diseases.

Answer: True

Q. Physical capital is inseparable from its owner.

Answer: False

Q. Human capital treats humans as ends in themselves.

Answer: False

Q. Indian Council for Medical Research is responsible for the promotion of health and family welfare programmes.

Answer: False

Q. Elementary education takes a major share of total education expenditure in India.

Answer: True

Q. The level of unemployment among educated youth is the highest.

Answer: True

Q. The differences in literacy rates between males and females are widening.

Answer: False

Match the alternatives given in Column II with respective terms in Column I.

Assertion (A) – Human capital treats human beings as a means to an end (increase in productivity).

Reason(R) – Human Capital Formation decreases by way of investments in education and health.

From the given alternatives choose the correct one :
Alternatives :

a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A).
b) Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation of Assertion (A).
c) Assertion (A) is true but Reason (R) is false.
d) Assertion (A) is false but Reason (R) is true.

Answer: Option – (c) Assertion (A) is True but Reason (R) is False.

 

Assertion (A) –  India’s Human Development Index (HDI) rank in the world is 134.

Reason(R) – HDI measures achievement in economic growth, standard of living and mortality rate.

From the given alternatives choose the correct one :

Alternatives :

a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A).
b) Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation of Assertion (A).
c) Assertion (A) is true but Reason (R) is false.
d) Assertion (A) is false but Reason (R) is true.

Answer: Option – (c) Assertion (A) is True but Reason (R) is False.

 

Assertion (A): Bengaluru in Karnataka is referred  to as silicon valley of India, as it is the hub of IT based industries.

Reason (R) Presence of world class communication facilities help it to attract many multinational companies that makes it hub of IT  based industries.

Answer: Option (A)  is correct

Explanation :  Bengaluru is also known as the silicon Valley of India” because of its role in promoting the IT industry in India. Infosys, ISRO, HAI, Wipro and other Indian technology organizations have their headquarters in the city?

 

Q. Assertion (A) Investors are reluctant to invest in tidal energy projects.
Reason (R): Tidal energy has high cost and low running cost As a result, a tidal power scheme may not give returns for years

Answer: Option (A) is correct

Explanation : Tidal energy has a high capital cost i,e installation cost

 

Assertion (A) Medical tourism is great opportunity for India .
Reason (R): Indian health services combine the latest medical technologies with qualified professionals and are cheaper for foreigners. By upgrading health services, it can be a great opportunity for India.

Answer: Option ( A)  is correct.

 

Q. Assertion(B): Sustainable development is the only way that will allow economy to have a proper development.
Reason (R): Sustainable development is the development in which the economy is developed considering the needs of the future generation.

Answer: Option (B) is correct.

Explanation: Dimensions of Sustainable Development :

(i) social development
(ii) economic development
(iii) environmental development

As all three aspects are included in sustainable development, thus sustainable development is the only way that will allow economy to have a proper development.

 

Assertion (A) Indian economy in marching ahead towards progress.

Reason (R) The contribution of agriculture in national income is declining but the contribution of industries and service sector is increasing continuously. It is an indicator of economic development of Indian Economy.

Answer: Option (A)  is correct.

 

Q. Assertion (A): Less women are found in regular salaried employment.

Reason (R): Women worker  accord highest- priority to self-employment because of mobility of female labour work force both in urban as well as in rural areas.

Answer: Option (A) is correct.

 

Q.  Assertion (A) – Meena is a housewife. Besides taking care of household chores, she works in the cloth shop which is owned and operated by her husband, She is considered as self-employed worker.

Reason (R): Self-employed workers are those who uses their own resources to earn and make a living.

Answer: Option (B) is correct.

Explanation: A person who participates in the production process and contributes to GDP formation is referred to as a worker. As here, Meena works in a cloth store to support her husband and contribute to GDP by donating her services, therefore, she can be considered an worker.

 

Q. Assertion(A): In rural India, horticulture plays a vital role in providing food and nutrition to the rural population.
Reason (R): Various horticultural activities in Indian villages have improved the economic conditions of many farmers. Such activities have become a lucrative source of livelihood for many women in the rural India.

Answer: Option (A) is correct.

 

Q. Assertion (A): The Prime Minister urged to increase the rural income by increasing non-farm activities.

Reason (R): Non-farm activities (agro-processing industries, poultry, craft, handloom) provide alternative avenues for sustainable livelihood and may raise the level of income as the risks due to fluctuations in production and market prices is generally less.

Answer: Option (A) is correct.

Explanation: Agriculture in India is mainly a seasonal occupation, however, during off seasons, it becomes difficult to find employment and stabilize farmer’s income. Thus, the Prime Minister has urged appropriately in the best interest of the farmers of the rural India.

 

Q. Assertion (A): Physical capital helps in formation of human capital.
Reason (R): Physical capital is passive in nature.

Answer: Option (D) is correct.

Explanation: Human capital helps in formation] of physical capital.

 

Q.  Assertion (A): Human Capital Formation gives birth to innovation, invention and technological improvements

Reason: Investment in education creates ability to adopt newer technologies, facilitates invention and innovation since educated workforce generally adapts to modern technologic and innovation.

Answer:  Option ( A) is correct.

 

Q. Read the following statements carefully and choose the correct alternatives given below:

Statement 1 – Subsidies do not add any burden on the financial health of a nation.

Statement 2 – Complete removal of subsidies may violate the aim of equitable distribution of
income.

Alternatives:

a) Both the statements are true.
b) Both the statements are false.
c) Statement 1 is true and Statement 2 is false
d) Statement 2 is true and Statement 1 is false

Answer:  Option (A)  is correct