Chapter 5 Human Capital Formation

1. Economists have stressed the need for expanding educational opportunities in a nation. Why?
2. Mention any two forms of health expenditure.
3. Why is health seen as a source of human capital formation?
4. What is the reason for rural-urban migration In India?
5. Why is the expenditure on migration a source of human capital formation?
6. Owner of human capital has to be present at the place of production. Why?
7. How according to World Bank, can India increase her per capita income by three times by 2020?
8. What is the reason for the existence of both private and public institutions in the education and health
service markets?
9. Write one positive development which signifies narrowing of gender equity in India.
10. When compared to less educated, a large proportion of educated persons are unemployed. Why?
11. We need to invest in __________to produce more of human capital.
12. The enhanced earnings in the new place __________ the cost of migration.
13. Human capital is not perfectly mobile between countries as movement is restricted by _____.
14. A healthy person could provide ___________ for a longer period of time.
15. Education facilitates _____________.
16. Human beings are a means to an end says ____________
17. Human beings are ends in themselves says ______________
18. The outcome of investing in on the job training and information is __________
19. During 1952-2014, education expenditure as a % of total Government expenditure increased to
_______
20. During 1952-2014, education expenditure as a % of GDP increased to __________
21. Major share of education expenditure is taken by ______________.
22. Least share of education expenditure is taken by __________.
23. The current level of expenditure as % of GDP is _____%
24. The desired level of expenditure as % of GDP should be _____%
25. In 2006, India enacted the Right to Education Act to make free education a ____________ of all
children in the age group of 6-14 years.
26. The current education and health cess on all Union Government taxes is 5%
27. The Indian education pyramid is steep implying _________
28. The most unemployed are among the __________
29. 3 – 6% of ___________ educated youth in rural and urban areas are unemployed as per NNSO
data in the year 2011-12.
30. Individuals invest in education for
a. Increasing their future income
b. Having a healthy life
c. Improving their social status
d. Future generation to have a better life
31. Expenditure on on-the job training is a source of capital formation because
a. Money is spent on it
b. It cannot be avoided
c. It is part of CSR
d. Labour productivity increases
32. The cost of migration for a person includes
a. Cost of transport
 b. Higher cost of living in the migrated place
c. Pain of having to live in a new place
d. All of the above
33. A large population can itself become an asset in accelerating economic growth. This was
recognized by the Planning Commission in
a. Fifth plan
b. Second plan
c. Seventh plan
d. Third plan
34. Expenditures on health and education are to be carried on by
a. Central government
b. State government
c. Local government
d. All of the above
35. The Government expenditure on education is expressed as
a. As a % of total Government expenditure
b. As a % of GDP
c. As a proportion of human development
d. a & b
36. Expenditure per student is the highest in
a. Elementary education
b. Secondary education
c. Tertiary education
d. Primary education
37. Generally education achievements in a country are indicated in terms of
a. Adult literacy level
b. Youth literacy level
c. Primary education completion rate
d. All of the above
38. To make a favourable impact on fertility rate
a. Marriage age of girls must be raised
b. Women education must be promoted
c. Maternal mortality must be improved
d. All of the above
39. Indian education
a. Is a steep pyramid
b. Is an inverted pyramid
c. Is a hexagon
d. Is pentagon
40. Health is as much important for a nation as education is. T/F
41. Whereas physical capital depreciates, human capital does not. T/F
42. Nature of benefits flowing from human capital is different from that of physical capital. T/F
43. Physical capital formation is a social process. T/F
44. Benefits arising from human capital are external. T/F
45. Human capital growth in developing countries has been as fast as per capita income. T/F
46. Basic education and health are important in themselves irrespective of their contribution to
labour productivity. T/F