Question 1

What does human capital formation refer to?

Accepted Answer

Human capital formation refers to the process of acquiring and increasing the number of persons who have the skills, education, and experience that are critical for the economic and political development of a country. It is an investment in human beings and their development.

Question 2

Which of the following is considered a major source of human capital formation?

Accepted Answer

Expenditure on education is considered a major source of human capital formation because it enhances the productivity and earning capacity of individuals, leading to higher economic growth.

Question 3

Which organization regulates the higher education sector in India?

Accepted Answer

The University Grants Commission (UGC) is the main statutory organization set up by the Government of India in 1956 for the coordination, determination, and maintenance of standards of university education.

Question 4

What is the primary objective of health expenditure as a source of human capital?

Accepted Answer

The primary objective of health expenditure is to maintain and improve the physical capacity and efficiency of workers, which prevents loss of productivity due to illness and absenteeism.

Question 5

On-the-job training helps in:

Accepted Answer

On-the-job training helps workers to learn advanced techniques, enhance their skills, and increase productivity by bridging the gap between theoretical knowledge and practical application.

Human Capital Formation in India — CBSE Class 11 Economics Important Questions & Revision Notes