Chap 5 Human Cap Formn QB Answers PDF

CHAPTER-5 HUMAN CAPITAL FORMATION IN INDIA I) Choose the correct answer. (Each question carries one mark) 1. Who can work better in the following: a) A sick person b) An unhealthy labour c) A person with sound health...

CHAPTER-5 HUMAN CAPITAL FORMATION IN INDIA I) Choose the correct answer. (Each question carries one mark) 1. Who can work better in the following: a) A sick person b) An unhealthy labour c) A person with sound health d) None of the above 2. What percent GDP as estimated by Tapas Majumdar Committee should spend for education b) 4% b) 6% c)8% d) 5% 3. Education for all, a) Still not a dream b) Still a distant dream c) Dream Only d) None of the above II) Fill in the blanks. (Each question carries four marks). 1. Investment on education is considered as one of the main sources of Human Capital. 2. Government of India has also started levying 2 percent of Education Cess on all Union taxes. 3 The revenue from education cess has been ear marked for spending on Elementary education. 4 The contribution of the educated person to economic growth is more than that of an Illiterate (un educated) person. III) Match the following: (Each question carries one mark) 1) More Contribution to National Income 1) Global Growth Centres 2) Deutsche Bank 2) India and the knowledge economy 3) World Bank 3) Literacy rate 4) Educational Achievements 4) A positive Development 5) Better Gender Equity 5) Skilled Labourer Ans: 1) More Contribution to National Income 1) Skilled Labourer 2) Deutsche Bank 2) Global Growth Centres 3) World Bank 3) India and the knowledge economy 4) Educational Achievements 4) Literacy rate 5) Better Gender Equity 5) A positive Development IV) Answer the following question in a word/ sentences each. (Each question carries one marks) 1. Expand NCERT. Ans: National Council of Educational Research and Training. 2. State the reasons for migration. Ans: People migrate in search of jobs that bring them higher income than what they get in their native place, or for higher studies and for receiving medical treatment in good hospitals, etc. 3. Expand UGC. Ans: University Grants Commission. 4 Expand ICMR Ans: Indian Council for Medical Research. V) Answer the following question in four sentences each. (Each question carries two marks) 1. State the need of investment on human capital. Ans: There is a need to undertake investment on Human capital. It is necessary to invest on human resources to make them more innovative, productive and useful by investing on their education, health and training. The government is taking many steps to educate, train and protect the health of population to make it qualitative for economic development. 2. Why individuals spend money on education? Ans: Investment in education is considered as one of the main sources of human capital formation. Spending on education by individuals is similar to spending on capital goods by companies to increase their profits in future. Individuals invest in education in order to increase their earnings in the form of money income in future. 3. What are the two major sources of human capital in a country? Ans: The major sources of Human Capital Formation are as follows: Investment on Education Investment in Health care facilities. 4. What are the indicators of educational achievement in a country? Ans: The indicators of educational achievements are: Adult literacy rate. Primary education completion rate Youth literacy rate. 5. What factors contribute to human capital formation? Ans: The factors which contribute to human capital formation are:  Expenditure on Education. Expenditure on health. Expenditure on training Expenditure on information. Migration. 6. What are the various forms of health expenditures? Ans: The various forms of health expenditure are: Preventive medicine (vaccination) Curative medicine (medical intervention during illness). Social medicine (spread of health awareness). Provision of clean drinking water and good sanitation. VI) Answer the following question in twelve sentence each. (Each question carries four marks.) 1. Education is considered to be an important input for the development of the nation. How? Ans: The contribution of the educated persons to economic growth is more than that of illiterate persons. Education provides knowledge to understand changes in society and scientific advancements and facilitate invention and innovation. Further, the availability of educated labour force facilitates adaptation to new technologies. To sum up, the education is considered as important input for the development of a nation in following ways: Acts as a source of knowledge. It gives a person the capacity to earn higher revenue. It provides knowledge to understand the changes taking place in society. It encourages innovations. It facilitates development and adoption of new techniques of production. It leads to better utilisation of resources. It increases the mobility of labour. It leads to individual development and builds better civilized society. 2. How does investment in human capital contribute to growth? Ans: Economic growth refers to increase in real national income of a country over a period of time. Human capital refers to skills and knowledge imbibed in human beings. The labour skill of an educated person is more than that of an illiterate person. The contribution of the educated person to economic growth is more than that of an uneducated person. It modernizes the attitude and behaviour of the people Education provides the knowledge about the latest technology. It explains the new methods of production through innovations in various sectors of the economy. It creates the ability to absorb new technologies. Education helps the labourers to search best rewarding employment opportunities all over the world. It increases mobility of labour. Health is also an important factor for economic growth. A healthy person could provide uninterrupted labour supply for a long period of time. It will increase the enrolment and attendance of children in schools and colleges.  The human capital contributes substantially towards increasing labour productivity. It leads to optimal utilisation of country’s resources. Therefore, a higher rate of Human Capital formation definitely contributes towards economic growth. 3. Bring out the need for on-the-job-training for a person. Ans: On-the –job-training is nothing but an arrangement of training in which the laborers’ are given an opportunity to obtain skills while working. It includes the following: Providing training to workers in the industry itself. Arranging training facilities outside the industry i.e, off campus training. Providing on-line training and arranging satellite programme. Arranging excursion to industrially advanced regions and providing training. The On-line-job training facility helps human capital formation in following ways: The employees cum trainees get ample time for learning new methods of production under the supervision of skilled workers. The employees get extra technical skill without incurring any expenditure. The employees will get adjusted to technical advancement and get promotion in their jobs. It helps in undertaking innovations. This training involves some expenses by the firms. Firms will, thus, insist that the workers should work for a specific period of time, after their training, during which they can recover the benefits of the enhanced productivity owing to the training. Expenditure regarding on-the-job training is a source of human capital formation as the return of such expenditure in the form of enhanced labour productivity is more than the cost of it. 4. Discuss the need for promoting women’s education in India. Ans: Women have been neglected when it comes to education in India. The access to education has always been biased towards male population due to our social system which is patriarchal. The lack of education has caused exploitation of women and has resulted in a lower social status of women in India. There is an imminent need or promoting female education in India, because of the following reasons: (i) Women's education is essential for providing them economic independence and empowering them to save them from exploitation and domestic violence. (ii) Women's education is essential in order to raise the social status of women so that the quality of life of women can be improved. (iii) Educating woman helps in promoting family welfare programmes. It helps in reducing fertility Rate and thus in population control. (iv) Education leads to better health care for both women and children. VII) Answer the following question in twenty sentences each. (each question carries six marks) 1. Discuss the following as a source of human capital formation. (1) Health Infrastructure (2) Expenditure on migration. Ans: Health Infrastructure: The various forms of health expenditures are as follows. Preventive medicine- vaccinations to prevent deadly diseases. Curative medicine- obtaining medical treatment during illness. Social medicine- spread of awareness about keeping good health and its importance. Provision of clean drinking water and sanitization.  The healthy individuals are source of human capital because of the following reasons: They directly contribute to regular and higher productivity of labour. A sick labourer without access to medical facilities has to remain absent from work. This leads to loss of productivity. Health expenditure directly increases the supply of healthy labour force and is, thus, a source of human capital formation. Hence, expenditure on health is an important source of human capital formation. Expenditure on Migration: People migrate from their native place in search of jobs which bring higher salaries. Unemployment is the reason for rural-urban migration in India. Technically qualified persons like engineers and doctors migrate to other countries to earn better income. Migration in both these cases involves cost of transport, higher cost of living in the migrated places and psychic costs of living in a strange sociocultural setup. The enhanced earnings in the new place outweigh the costs of migration; hence, expenditure on migration is also a source of human capital formation. 2. Examine the role of education in the development of a nation. Ans: The education plays a predominant role in economic development of India in following ways: (1) It modernizes the attitude and behaviour of the people: Education brings favourable changes in the attitude and behaviour of people. It gives inputs like what is right and what is wrong and contributes for sound and valuable judgement. (2) Promotes science and technology: Education always provides the knowledge about the latest technology to the people who know reading and writing. It explains the new methods of production through innovations in various sectors of the economy. (3) Increases mobility of labour: Education helps the labourers to search best rewarding employment opportunities all over the world. It makes him to move from country to country or state to state as and when required. (4) Creates national and developmental consciousness: Education creates civic, national and developmental consciousness among the literates. It makes the people to develop a sense of patriotism and helps them to adopt strategies of progress in the life of people. (5) Contributes to skilled and trained workers: Education generates skilled and trained labour force needed for the development of the country. Education includes both general and technical education. This contributes for the supply of skilled labour for overall development of the country. (6) Act as source of knowledge: Education is house of knowledge for all the purposes. Anything to know we need to be literate. It makes people to take decisions on the basis of their knowledge gained in different stages while undergoing studies. (7) Develops moral values: As education provides number of stories and incidents of people’s life, people can definitely develop moral values. The moral values are included in their daily life. (8) Creates awareness about culture and politics: Education always provide complete information about cultural heritage of any nation. It explains how they are constructed with the investment of money and human capital. Education helps to get day to day information about politics.  3. Trace the relationship between human capital and economic growth. Ans: There is a direct relationship between Human capital and economic growth in every country. The term economic growth refers to increase in real national income of a country. The contribution of the educated person to economic growth is more than that of an uneducated person. A healthy person can provide uninterrupted labour supply for a longer period of time. As the education increases the efficiency of labour, it results in innovations and improvements in application of science and technology in agriculture, industry and service sectors of the country. The availability of educated labour force facilitates adaptation to new technologies and leads to inventions and innovations. The 7th Five Year Plan says that the human resource development has a key role in any development strategies, particularly in a large populated country. Trained and educated on sound lines, a large population can itself become an asset in accelerating economic growth and in ensuring social change in desired directions.” The National Education Policy 2020 states that the world is undergoing rapid changes in the knowledge landscape. With various dramatic scientific and technological advances, such as the rise of big data, machine learning, and artificial intelligence, many unskilled jobs worldwide may be taken over by machines, while the need for a skilled workforce, particularly involving mathematics, computer science, and data science, in conjunction with multidisciplinary abilities across the sciences and social sciences, and humanities, will be increasingly in greater demand. With climate change, increasing pollution, and depleting natural resources, there will be a sizeable shift in how we meet the world’s energy, water, food, and sanitation needs, again resulting in the need for new skilled labour, particularly in biology, chemistry, physics, agriculture, climate science, and social science. The growing emergence of epidemics and pandemics will also call for collaborative research in infectious disease management and development of vaccines and the resultant social issues heightens the need for multidisciplinary learning. 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 the per capita income of India will increase from 1000 US dollars to 3000 US dollars by 2020. India has all the ingredients to achieve this- large no. of educated and skilled manpower, well diversified science and technology infrastructure and a well-functioning democracy. Indicators like Real Per Capita Income, crude death rates, life expectancy and infant mortality rate have grown simultaneously, which prove that human capital and economic growth are positively related. **********************