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

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.

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

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

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

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)

715 %

915 %

815 %

1015 %

3 / 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

4 / 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.

Statement 1 is false and statement 2 is true

Both statements 1 and 2 are false

Statement 1 is true and statement 2 is false

Both statements 1 and 2 are true

5 / 15

Which of the following is an example of preventive medicine?

Provision of clean drinking water

Vaccination

Medical intervention during illness

Spread of health literacy

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 false, but R is true.

A is true, but R is false.

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

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

7 / 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 growth of individuals

It increases the labor charge

8 / 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-ii; B-iii; C-iv; D-i

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

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

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

9 / 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

10 / 15

Assertion (A): The National Education Policy 2020 emphasizes the need for a skilled workforce in fields like data science and AI.
Reason (R): Technological advances are reducing the demand for unskilled labor globally.

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

A is false, but R is true.

A is true, but R is false.

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

11 / 15

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

All

Gender equity

Shift from degree oriented to skill-based education

Focus on education for all

12 / 15

Which of the below statements is true about human development?

It treats human beings as a means to an end, the end being the increase in productivity.

Both first and second

It considers that investment in health and education is unproductive if it does not increase the output of goods and services.

It is an end in itself.

13 / 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.

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.

A is false, but R is true.

14 / 15

What is the nature of human capital assets?

Both (a) and (b)

Tangible

Intangible

None of the above

15 / 15

Match the Organization with its Role in India’s Education/Health Sector:

Column A	Column B Options
A. NCERT	1. Regulates medical education
B. UGC	2. Develops educational resources
C. National Medical Commission	3. Oversees higher education funding
D. ICMR	4. Conducts health research

A – 2, B – 3, C – 4, D – 1

A – 3, B – 2, C – 1, D – 4

A – 2, B – 1, C – 3, D – 4

A – 2, B – 3, 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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