CBSE Class 11 Economics Human Capital Formation In India Worksheet Set B

CASE STUDY-1

Traditionally, economic theory has given emphasis on physical capital accumulation as the most robust source of economic growth, at least in the short-run, with exogenous technical progress being the long-run determinant of growth. The exogeneity of technological progress in the neoclassical growth model and the difficulty of explaining long-term economic growth have restricted the analytical capacity of the neoclassical model and its empirical verification. Human capital theory suggests that individuals and society derive economic benefits from investments in people. Education has consistently been emerged as the prime human capital, but Becker and Schulz have argued that health and nutritional expenditure is also a part of human capital investment. This is because education is perceived to contribute to health and nutritional improvements.

Questions:

Question: Economic growth depends upon:
a) development of physical capital
b) development of human capital
c) development of working capital
d) all of these
Answer: D

Question: Economic development depends upon which of the following components?
a) development of physical capital
b) development of human capital
c) development of working capital
d) all of these
Answer: B

Question: Human capital is __________ concept as compared with human development.
Answer: narrow

Question: Which of the following are types of on-job-training?
a) On campus training
b) Off-campus training
c) both (a) and (b)
d) none of these
Answer: C

CASE STUDY-2

Human Capital and Human Development are related concepts, but certainly not identical. Human capital is a means to an end. Human capital is a means in the sense that it consists of ‘skills’ as used in the process of production. It consists of ‘kn owhow ‘, abilities and expertise used as inputs in the production activity. Increase in productivity (referring to output per unit of input) is the end result. Thus, we want to achieve higher and higher levels of output through extensive and intensive application of human capital. Human development is an end itself It refers to development of the individuals as valuable personalities by acquiring good education and attaining good health. Human development occurs when more and more individuals in a society are educated, healthy and skill-oriented

Questions:

Question: Human development occurs when more and more individuals in a society are educated, healthy and skill-oriented
a) skill-oriented
b) educated
c) healthy
d) all of the above
Answer: D

Question:Differentiate between human development and human capital.
Answer: Human capital is a means to an end. Human development is an end itself It refers to development of the individuals as aluable personalities by acquiring good education and attaining good health. Human development occurs when more and more individuals in a society are educated, healthy and skill-oriented.

Question: Human development is a means to an end. (true/false)
Answer: False

Question: Human development is an end itself It refers to development of the individuals as valuable personalities by acquiring _________________ (education/investment)
Answer: education

CASE STUDY-3

You all may have heard of the term ‘capital’ in economics. Adam Smith defines capital as “That part of man’s stock which he expects to afford him revenue”. Capital is one of the four factors of production – land, labour, and entrepreneurship being the other three. There are many types of capital. However, for time being, we shall focus our discussion on two types of capital – physical capital and human capital. India is possessing a huge size of human resources. In order to transform the liability of this huge size of population into assets adoption of various measures for human capital formation is very much essential. The term human capital formation implies the development of abilities and skills among the population of the country. In order to develop various sectors of the economy, the country should introduce manpower planning for the development of its human resources. It is from the 7th Five Year Plan onward that we began to focus on Human Development.

Questions:

Question: The __________ capital is tangible and can be easily sold in the market. (human/physical)
Answer: Physical

Question: Doctors, engineers, etc. are a part of human_________. (capital/resource)
Answer: Capital

Question: How do you think Human Capital and Human Development are different?
Answer: Human capital considers education and health as a means to increase labour productivity. Human Development is based on the idea that education and health are an integral to human well-being because people will lead a valuable life only when they are educated and healthy.

Question: State any two sources of human capital.
Answer: Investment in education, Investment in health.

CASE STUDY-4

On-the-job training, also known as OJT, is a hands-on method of teaching the skills, knowledge, and competencies needed for employees to perform a specific job within the workplace. Employees learn in an environment where they will need to practice the knowledge and skills obtained during their training. On-the-job training uses the existing workplace tools, machines, documents, equipment, and knowledge to teach an employee how to effectively do their job. Consequently, no stand-ins exist that will require an employee to make the training transfer to the workplace

Questions:

Question: How is on-the-job training source of human capital formation?
Answer: On-the-job training source of human capital formation as it increases the skill and efficiency of the workers and leads to an increase in production and productivity.

Question: Why are workers required to work for a certain period after the on-the-job training?
Answer: Workers are required to work for a certain period after the on-the-job training so that firm Can recover the benefits of the enhanced productivity owing to the training.

Question: Which are the two different forms of on-the-job-training?
Answer: (i) Training under the supervision of a skilled worker in the firm itself.
(ii) Off -campus training

Question: What is on-the-job-training?
Answer: On-the-job training is a form of training taking place in a normal working situation.

CASE STUDY-5

World Bank in its recent report, India and the knowledge economy – Leveraging strengths and opportunities, states that India should make a transition to the knowledge economy and if it uses its knowledge as much as Ireland does, the per capita income of India will increase from US $ 1000 in 2002 to US $ 3000 in 2020. It further states that the Indian economy has all the key ingredients for making this transition such as a critical mass of skilled workers, a well- functioning democracy and a diversified science and technology infrastructure.

Questions:

Question: Report on Global Growth Centres , 2005 was published by:
(a)World Bank
(b) Deutsche Bank
(c) IMF
(d) RBI.
Answer: B

Question: Name the two independent reports on the Indian economy, which have identified that India would grow faster due to its strength in human capital formation.
Answer: Global Growth Centres, India and the knowledge economy- Leveraging strengths and opportunities.

Question: What are the key ingredients of Indian economy for making a transition to the knowledge economy?
Answer: A critical mass of skilled workers, a well- functioning democracy and a diversified science and technology infrastructure.

Question: Like which of the following country India should use its knowledge economy very effectively?
(a) Germany
(b) Ireland
(c) China
(d) United Kingdom.
Answer: B

CASE STUDY-6

When we talk about economic growth, human capital is the main reason for accelerated growth and expansion for many countries, which provide investment in human capital. This gives the best advantages to these countries for providing the best situation for work and life. A significant advantage in generating a stable environment for growth is that the nation has the expanded high-quality human capital in fields like health, science, management, education, and other fields. Here the main components of human capital are definitely human beings, but presently, the principal component is creative, an educated, and enterprising person, with a high level of professionalism.

Questions:

Question: ____________refers to the stock of skill, ability, expertise, education and knowledge in a nation at a point of time.
a) Human capital
b) Physical capital
c) Natural capital
d) None of the above
Answer: A

Question: Human capital increases
a) Labour in market
b) Labour Productivity
c) Trained labour
d) None of the above
Answer: B

Question: Innovation leads to
a) Growth
b) Development
c) production
d) All of the above
Answer: D

Question: The human capital in the economy manages the central portion of the _____________ of the country.
Answer: national wealth

CASE STUDY-7

The Indian software industry has been showing an impressive record over the past decade. Entrepreneurs, bureaucrats and politicians are now advancing views about how India can transform itself into a knowledge-based economy by using information technology (IT). There have been some instances of villagers using e-mail which are cited as examples of such transformation. Likewise, e-governance is being projected as the way of the future. The value of IT depends greatly on the existing level of economic development.

Questions:

Question: What does this paragraph talk about- Physical capital or human capital?
Answer: human capital

Question: How can a healthy person contribute to the nation?
Answer: A healthy person, by maintaining personal hygiene and sanitation, stops the spread of contagious diseases and epidemics

Question: Does human capital benefit society?
Answer: Yes, Human capital benefits not only the owner but also the society in general.

Question: How do you think IT brings in rural transformation?
Answer: Use of e-mails, e-governance, e-market.

CASE STUDY-8

India is possessing a huge size of human resources. In order to transform the liability of this huge size of population into assets adoption of various measures for human capital formation is very much essential. The term human capital formation implies the development of abilities and skills among the population of the country. In order to develop various sectors of the economy, the country should introduce manpower planning for the development of its human resources. Manpower planning indicates planning of human resources for meeting the development needs of the economy. Just for the proper utilization of manpower resources the country should impart proper education to its population and train its labour force in technology, engineering, management, medicine and in many other fields connected with the development of various sectors of the economy.

Questions:

Question: On what key areas India should focus to improve its human Capital.
Answer: Education and health

Question: Human capital formation implies
(a) Increase in Per Capita Income
(b) Increase in Life expectancy rate
(c) Development of technology and skills
(d) Increase in GDP
Answer: C

Question: India should introduce ____________ for the development of its human resources.
Answer: Manpower planning

Question: What steps should India take for proper utilization of manpower resources
Answer: India must impart proper education to its population and train its labour force in technology, engineering, management, medicine and in many other fields to better utilize its manpower resources.

CASE STUDY-9

Prime Minister Narendra Modi interacted with leading economists of the country on charting the economic agenda in the post -COVID world and highlighted government’s commitment to developing world-class infrastructure and the economic potential set to be unleashed by National Optical Fibre Network. He highlighted the faith shown by foreign investors in India’s growth story, with foreign direct investment growing by 11 per cent between April and October, despite a global recession. The participants stressed the importance of investing in public health and education, as human capital would also likely emerge as a driver of growth, especially in the knowledge economy going forward. They also stressed on labour-intensive manufacturing given the success India has achieved in launching the PLI scheme in mobile manufacturing.

Questions:

Question: ___________ capital refers to the stock of skill , ability, expertise ,education and knowledge embodied in the people.
Answer: Human Capital

Question: Which one of the following is a major source of human capital formation in a country?
(a) Expenditure on Education
(b) Expenditure on Infrastructure
(c) Expenditure on defense
(d) None of these
Answer: A

Question: Why do we need to invest in human capital?
Answer: We need to invest in human capital to make effective use of physical capital and to increase productive capacity.

Question: Which international organization recognized India as the Knowledge Economy in its report, ‘Leveraging Strengths and Opportunities’?
Answer: World Bank

CASE STUDY-10

Though literacy ratio for both- adults as well as youth- have increased, still the absolute number of illiterates in India is as much as India’s population, was at the time of independence. In 1950, when the constitution of India was passed by the Constituent Assembly , it was noted in the Directive Principles of the Constitution that the government should provide free and compulsory education for all children upto the age of 14 years within 10 years from the commencement of the Constitution.

Questions:

Question: Education cess has been imposed by the government on all union taxes.
a) 3%
b) 4%
c)10%
d) 2%
Answer: D

Question: Government expenditure on education is measured as a percentage of total government expenditure and as a percentage of______________ .
Answer: GDP

Question: Government Organizations that regulates education sectors:
a) NCERT
b) ICMR
c) UGC
d) Both A and C
Answer: D

Question: ______________ is a means to an end.
Answer: Human Capital