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

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

It increases the efficiency and skill of human capital

It increases the labor charge

It decreases earning capacity of individuals

It increases the growth of individuals

2 / 15

What is the nature of human capital assets?

Both (a) and (b)

None of the above

Tangible

Intangible

3 / 15

Which of the following is an example of preventive medicine?

Provision of clean drinking water

Vaccination

Spread of health literacy

Medical intervention during illness

4 / 15

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

All

Gender equity

Focus on education for all

Shift from degree oriented to skill-based education

5 / 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 true

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

6 / 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 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.

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

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

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

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

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

8 / 15

Which of the following could aid in human capital formation?

creating open markets with increased stability

expanding the labor market by increasing the supply of jobs

promoting gender equality in the family

creating larger industries with more complex equipment

9 / 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-iv, C-i; D-iii

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

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

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

10 / 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.

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

A is true, but R is false.

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

11 / 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:-

increases output productivity

adds skills and expertise

improves efficiency

ensures gender equity

12 / 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 – 3, B – 2, C – 1, D – 4

A – 2, B – 3, C – 1, D – 4

A – 3, B – 1, C – 2, D – 4

13 / 15

Human development is _____.

Synonym to human capital

Investment in education, health, clean environment, etc.

Narrow concept focusing only on labor productivity

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

14 / 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.

A is false, but R is true.

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

A is true, but R is false.

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

15 / 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)

1015 %

815 %

715 %

915 %

Your score is

The average score is 63%

Leaderboard – Top Scorers

Check the top scorers here!

Pos.	Name	Score	Duration	Points
1	Gazal	100 %	2 minutes 12 seconds	15
2	AFRAH	93 %	4 minutes 11 seconds	14
3	Gazal	80 %	5 minutes 10 seconds	12
4	rohila	80 %	5 minutes 44 seconds	12
5	abc	80 %	6 minutes 9 seconds	12
6	akshita	80 %	6 minutes 18 seconds	12
7	lui	73 %	4 minutes 50 seconds	11
8	Siddhi	73 %	8 minutes 45 seconds	11
9	Afrah	73 %	8 minutes 55 seconds	11
10	Rr	67 %	4 minutes 27 seconds	10
11	Gazal	67 %	6 minutes 19 seconds	10
12	A	60 %	3 minutes 6 seconds	9
13	Happy	60 %	6 minutes 19 seconds	9
14	Abc	60 %	11 minutes 52 seconds	9
15	Nishal	53 %	7 minutes 31 seconds	8
16	xyz	47 %	3 minutes 59 seconds	7
17	VANSH KING	40 %	4 minutes 44 seconds	6
18	p	40 %	10 minutes 30 seconds	6
19	Suryank	33 %	9 minutes 33 seconds	5
20	Jiya	0 %	2 minutes 5 seconds	0

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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