MCQs on Human Capital Formation in India

Human capital formation in India involves the usage of the human resources of a nation and turning them into human capital that can contribute towards development. It can help to utilise the skills, knowledge, abilities and educational competence to serve in the cause of the nation-building exercise. The human capital of any country can be enhanced by spending on areas like health, education, training, study programmes, technical expertise and technological advancement.

We have listed below a number of multiple-choice questions on Human capital formation in India to help students prepare for their exams.

  1. Which of the following statements is true about human capital?
    1. Human resource and human capital are related to each other
    2. Human development and human capital are related to each other
    3. Both a and b are correct
    4. Both a and b are incorrect
  2. Answer: b

  3. Which of the following statements is true about the importance of education?
    1. Education is important because it helps to expand the mental horizon of an individual
    2. Education is important because it helps to develop the human personality
    3. Education is important because it helps in the cause of economic development of the nation
    4. All of the above
  4. Answer: d

  5. Which of the following statements is not a merit of human capital formation?
    1. Human capital formation plays an important role in improving technical knowledge
    2. Human capital formation helps to expand the size of businesses
    3. Human capital formation is important for the purpose of changing social outlooks
    4. Human capital formation leads to an increase in the overall cost of production
  6. Answer: d

  7. Which of the following statements is not true about the education levels?
    1. Years of schooling is an indicator of the education level of an individual
    2. Teacher pupil ratio is an indicator of the education level of an individual
    3. Enrollment rate is an indicator of the education level of an individual
    4. Life expectancy is an indicator of the education level of an individual
  8. Answer: d

  9. Which of the following statements about education expenditure is accurate?
    1. Elementary levels take up the major share of total educational expenditure in India
    2. Tertiary levels take up the major share of total educational expenditure in India
    3. Secondary levels take up the major share of total educational expenditure in India
    4. Higher levels take up the major share of total educational expenditure in India
  10. Answer: a

  11. Which of the following is correct about human resource?
    1. A person is a human resource if he/she is willing to work
    2. A person is a human resource if he/she is able to work
    3. A person is a human resource if he/she is from a particular age group
    4. All of the above
  12. Answer: c

  13. The expenditure on education by the Indian government _______.
    1. Is expressed as a percentage of the gross domestic product (GDP)
    2. Is expressed as a percentage of the total government expenditure
    3. Both a and b are correct
    4. Both a and b are incorrect
  14. Answer: c

  15. Which of the following is a major source of human capital formation in India?
    1. Expenditure on on-the-job training
    2. Expenditure on education
    3. Both a and b are correct
    4. Both a and b are incorrect
  16. Answer: c

  17. Which of the following statements about rural-urban migration is true?
    1. Illiteracy is one of the main reasons for rural-urban migration in India
    2. Inflation is one of the main reasons for rural-urban migration in India
    3. Lack of infrastructure is one of the main reasons for rural-urban migration in India
    4. Unemployment is one of the main reasons for rural-urban migration in India
  18. Answer: d

  19. Which of the following is an accurate definition of physical capital?
    1. Physical capital refers to the total stock of the tangible inputs of production like land and machinery
    2. Physical capital refers to the process of increasing and acquiring skilled people for the job
    3. Physical capital refers to the share of a company
    4. All of the above
  20. Answer: a

  21. Which of the following is the problem of human capital formation?
    1. Rising population is one of the main problems of human capital formation in India
    2. Brain drain is one of the main problems of human capital formation in India
    3. Low academic standards are one of the main problems of human capital formation in India
    4. All of the above
  22. Answer: d

  23. Which of the following agencies is responsible for implementing the rules and regulations for technical education?
    1. Indian Council of Medical Research (ICMR)
    2. All India Council of Technical Education (AICTE)
    3. University Grants Commission (UGC)
    4. National Council of Educational Research and Training (NCERT)
  24. Answer: b

  25. Which of the following is the meaning of people as a resource?
    1. It means that people are the natural capital of a country based on their existing skills
    2. It means that people are the human capital of a country based on their existing skills
    3. It means that people are the technical capital of a country based on their existing skills
    4. It means that people are the overall capital of a country based on their existing skills
  26. Answer: b

  27. Which of the following is not a source of transformation of human capital?
    1. Expenditure for building factories and machines
    2. Expenditure for migrating elsewhere looking for better employment opportunities
    3. Expenditure for training on the job to increase productivity
    4. All of the above
  28. Answer: a

  29. Demographic dividend means ________.
    1. The growth that can occur when a country’s population has a large number of people in the working-age bracket
    2. The growth that can occur when a country’s population has a large number of people not in the working-age bracket
    3. Both a and b are correct
    4. Both a and b are incorrect
  30. Answer: a

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