Human Capital Formation in India Class 12 MCQ Quiz – Test Your Understanding!

Are you ready to test your knowledge of Human Capital Formation in India from the Class 12 Economics syllabus? This chapter explains how education, health, and skill development contribute to economic growth by enhancing the productivity of individuals.

About the Quiz

Chapter Name: Human Capital Formation in India
Subject: Economics
Book: NCERT Class 12 Economics
Question Type: Multiple Choice Questions (MCQs)
Leaderboard: Yes (Check Your Rank!)

Why Take This Quiz?

✔ Helps in CBSE board exam revision
✔ Strengthens understanding of the role of education and health in economic growth
✔ Enhances knowledge of government initiatives for human capital formation
✔ Track your progress with the leaderboard

Click Below to Start the Quiz!

Chapter 4 Human Capital Formation in India

1 / 15

Human development is _____.

Narrow concept focusing only on labor productivity

Synonym to human capital

Investment in education, health, clean environment, etc.

Process of widening people’s choices as well as raising the level of well-being

2 / 15

On the basis of the below-mentioned information answer the following question:

human capital formation in india class 12 important quesitons answers

The Real Per Capita Income of India (as per the given data) has increased by _______________ (approximately) between 1951 and 2016-17. (Fill up the blank with the correct alternative)

915 %

815 %

1015 %

715 %

3 / 15

To increase future prospects in the education sector, the Government should:

All

Shift from degree oriented to skill-based education

Gender equity

Focus on education for all

4 / 15

Match the situations given in Column I with their respective implications given in Column II:

Column I	Column II
A. Migration	i. reduced in per capita economic growth
B. Low level of academic standards	ii. An imbalance between demand and supply of human resource
C. Population- High Growth rate	iii. Brain Drain
D. Lack of proper manpower planning	iv. Mismatch between required skill and academic standards

A-i; B-ii; C-iii; D-iv

A-iii; B-iv; C-i; D-ii

A-ii; B-iv, C-i; D-iii

A-ii; B-iii; C-iv; D-i

5 / 15

Assertion (A): Human development treats education and health as ends in themselves, unlike human capital.
Reason (R): Human capital focuses solely on increasing labor productivity through education and health investments.

A is true, but R is false.

A is false, but R is true.

Both A and R are true, but R is not the correct explanation of A.

Both A and R are true, and R is the correct explanation of A.

6 / 15

Assertion (A): Physical capital can be traded in the market, unlike human capital.
Reason (R): Human capital is intangible and inseparable from its owner, while physical capital is tangible.

A is true, but R is false.

Both A and R are true, but R is not the correct explanation of A.

A is false, but R is true.

Both A and R are true, and R is the correct explanation of A.

7 / 15

Which of the following could aid in human capital formation?

expanding the labor market by increasing the supply of jobs

creating larger industries with more complex equipment

creating open markets with increased stability

promoting gender equality in the family

8 / 15

Read the following statements carefully.

Statement 1: On-the-job training help to bridge the gap between theoretical concepts and practical experiences.

Statement 2: On-the-job training updates the employees, with the latest changes in their work field.

Both statements 1 and 2 are false

Statement 1 is false and statement 2 is true

Statement 1 is true and statement 2 is false

Both statements 1 and 2 are true

9 / 15

Ms. Ramanpreet has started a new business venture, she intends to spend a huge amount on ‘on-the-job training’ of her workers before putting them to work. It exhibits the right step in the direction of Human Capital Formation.

Spot which of the following does not directly contribute to the process of human capital formation by Ms. Ramanpreet:-

adds skills and expertise

increases output productivity

ensures gender equity

improves efficiency

10 / 15

Read the following statements - Assertion (A) and Reason (R):

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.

Assertion (A) is false but Reason (R) is true.

Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation of Assertion (A).

Assertion (A) is true but Reason (R) is false.

Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A).

11 / 15

Which of the following is the CORRECT difference between physical and human capital?

Physical capital provides both private and social benefits while human capital provides only social benefits.

Physical capital cannot be separated from its owner while human capital can.

The depreciation of physical capital can be arrested with more investment while human capital will continue to deplete.

Physical capital can be sold but human capital cannot be sold.

12 / 15

Which statement can be said to best describe the importance of expenditure on education?

It increases the efficiency and skill of human capital

It decreases earning capacity of individuals

It increases the labor charge

It increases the growth of individuals

13 / 15

Match the Statistic with its Context (1952-2014):

Column A	Column B
A. 7.92% to 15.7%	1. Education expenditure as % of GDP
B. 0.64% to 4.13%	2. Unemployment rate of graduates
C. 6%	3. Education expenditure as % of total govt spending
D. 19%	4. Recommended education spending by Education Commission

A – 3, B – 1, C – 4, D – 2

A – 3, B – 1, C – 2, D – 4

A – 3, B – 4, C – 1, D – 2

A – 1, B – 3, C – 4, D – 2

14 / 15

Who amongst the following, has received the greatest investment in human capital formation?

a 10th-pass girl who works as a store manager in a mall

a 12-year-old who helps her mother with construction work

a computer science graduate who works at a call center

a nurse in a clinic who is frequently absent because of his ill health

15 / 15

Match the Source of Human Capital Formation with its Outcome:

Column A	Column B Options
A. Expenditure on health	1. Enhanced earnings at migrated place
B. On-the-job training	2. Increased labor productivity
C. Expenditure on migration	3. Qualitative improvement in workforce
D. Expenditure on information	4. Efficient utilization of human capital

A – 3, B – 2, C – 4, D – 1

A – 2, B – 3, C – 1, D – 4

A – 3, B – 1, C – 2, D – 4

A – 3, B – 2, C – 1, D – 4

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Key Topics Covered in the Quiz

✔ Meaning and importance of Human Capital Formation
✔ Difference between Human Capital and Human Development
✔ Sources of Human Capital Formation (Education, Health, On-the-Job Training, Migration, Information)
✔ Role of Government in Human Capital Formation
✔ Challenges in Human Capital Development in India

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About the Quiz

Why Take This Quiz?

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Key Topics Covered in the Quiz

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