Learn CBSE Economics Index Terms for Class 11, Chapter 5 Human Capital Formation in India
1. Human Capital – Human capital refers to the stock of skill, ability, expertise, education, and knowledge in a nation at a point in time. We need investment in human capital to produce more human capital out of human resources.
Nations require adequate human capital who are educated and qualified as educators and other specialists. In other words, we need great human capital to create other human capital like doctors, engineers, professors, etc., which will later become human assets and contribute to the economy of the country.
2. Induction Training – This refers to training provided to newly recruited employees that familiarise them with the workings of the organisation. In this way, new employees can easily adjust and become familiar with their tasks and responsibilities in an organisation.
3. Coaching – New employees are made assistant to an experienced manager who acts as a coach wherein the employees observe the coach’s approach works and solves problems and guide the employees to find solutions to complex problems.
4. On-the-Job-Training – On-the-job-training methods involve employees learning a job by actually doing and performing it on a real-time basis while learning and developing expertise at the same time.
5. Migration – When a person or a group of the community moves from one place to another, majorly across political and administrative borders, it gives rise to migration. The term migration refers to the movement of people from one area to the other or from one country to another.
The rate of migration affects the growth of the population of a region by increasing or decreasing the number of people living there. Migration can be called permanent, temporary and daily.
6. Off-the-Job-Training – Under off-the-job training methods, employees are required to leave their workplace and concentrate their entire time on the training objectives.
7. UGC – University Grants Commission (UGC) of India comes under the Ministry of Human Resource Development (HRD), with its head office located in New Delhi. The UGC was established in 1953 and made into a statutory organisation with the UGC Act in 1956. UGC is responsible for coordinating, determining, and maintaining standards of higher education. The University Grants Commission provides recognition to universities in India and disburses funds to such recognised universities and colleges.
8. Unemployment – Unemployment is a situation when a person actively searches for a job and is unable to find work. Unemployment indicates the health of the economy.
The unemployment rate is the most frequent measure of unemployment. The unemployment rate is the number of people unemployed divided by the working population or people working in the labour force.
Unemployment rate = (Unemployed workers / Total labour force) × 100
9. Under Employment – Underemployment is a situation in which an individual is working much below his potential.
10. Human Capital Formation – Human capital formation refers to the process of adding to the stock of human capital over time. Human capital formation is the process of acquiring and increasing the number of skilled and experienced people. It is essential for the development of an economy.
11. Physical Capital – Physical capital is referred to as one of the three main factors in the production process. Physical capital consists of items like machinery, buildings, equipment, etc.
Physical capital includes man-made goods that are used in the process of production for converting raw materials to finished goods. Any new project requires a significant amount of investment in physical capital.
12. Human Development – Human development is based on the idea that education and health are integral parts of human beings only when people have it to apply their knowledge to derive maximum benefit.
13. Disguised Unemployment – This is a type of unemployment where people employed are more than actually needed. Disguised unemployment is generally traced in unorganised sectors or the agricultural sectors.
14. Structural Unemployment -This unemployment arises when there is a mismatch between the worker’s skills and the availability of jobs in the market. Many people in India do not get jobs matching their skills, or due to a lack of required skills, they do not get jobs, and because of poor education level, it becomes important to provide them with related training.
15. Seasonal Unemployment – That situation of unemployment, when people do not have work during certain seasons of the year, such as labourers in India rarely have occupation throughout the year.
16. Vulnerable Unemployment – People are deemed unemployed under this unemployment. People are employed but informally, i.e. without proper job contracts, and thus, records of their work are never maintained. It is one of the main types of unemployment in India.
17. Technological Unemployment – The situation when people lose their jobs due to advancements in technology. In 2016, data from the World Bank predicted that the proportion of jobs threatened by automation in India is 69% year-on-year.
18. Cyclical Unemployment – Unemployment is caused due to the business cycle, where the number of unemployed heads rises during recessions and declines with the growth of the economy. Cyclical unemployment figures in India are negligible.
19. Frictional Unemployment – This is a situation when people are unemployed for a short span of time while searching for a new job or switching between jobs. Frictional unemployment, also called ‘Search Unemployment’, is the time lag between jobs. Frictional unemployment is considered voluntary unemployment because the reason for unemployment is not a shortage of jobs, but in fact, the workers themselves quit their jobs in search of better opportunities.
20. AICTE – All India Council for Technical Education (AICTE) under the Ministry of Human Resource Development provides proper planning and development of the technical education system in India. The main objective of AICTE is to plan, formulate and maintain the norms and standards by acting as a statutory authority:
- To provide quality assurance through accreditation.
- To monitor, evaluate and provide funding for the priority areas.
- Maintaining parity of certification and awards.
- To manage and develop the technical education system of India.
We hope that the offered Economics Index Terms for Class 11 with respect to Chapter 5: Human Capital Formation in India will help you.
Related Links:
- Class 11 Economics Terms – Chapter 1: Development Policies and Experience (1947-90)
- Class 11 Economics Terms – Chapter 2: Indian Economy (1950-90)
- Class 11 Economics Terms – Chapter 3: Economic Reforms Since 1991
- Class 11 Economics Terms – Chapter 4: Current Challenges Facing the Indian Economy
- Class 11 Economics Terms – Chapter 6: Rural Development
- Class 11 Economics Terms – Chapter 7: Employment, Growth, Informalisation, and Other Issues.
- Class 11 Economics Terms – Chapter 9: Environment and Sustainable Development
- Class 11 Economics Terms – Chapter 10: Development Experiences in India: A Comparison with Neighbours.
