1st PUC Economics Question Bank Chapter 5 Human Capital Formation in India

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Karnataka 1st PUC Economics Question Bank Chapter 5 Human Capital Formation in India

1st PUC Economics Human Capital Formation in India TextBook Questions and Answers

Question 1.
What are the two major sources of human capital in a country?
Answer:
The two main sources of human capital in a country are:
1. Education:
Education not only raises the standard and quality of living but also encourages modem attitude of the people. It increases the productive capacity and productivity of nation’s workforce by enhancing their skills.

2. Health:
It helps economic development indirectly by supplying active, energetic and healthy workforce which activates entire production process.

Question 2.
What are the indicators of educational achievement in a country?
Answer:
The indicators of educational achievement in a country are:

  • Adult literacy level
  • Primary education completion rate.
  • Youth literacy rate.

KSEEB Solutions

Question 3.
Why do we observe regional difference in educational attainment in India?
Answer:
There is great regional differences in educational attainment in India. Some states like:

  • Kerala
  • Tamil Nadu and Uttaranchal have higher literally rates.

While states like:

  • Bihar
  • Rajasthan
  • UP (Uttar Pradesh)
  • Arunachal Pradesh

has low literacy rates. This is due to inequalities in income and wealth on large scale also lack investment by Government on education.

1. The people of these states give less importance to education and are mainly employed in agricultural sector or informal sector that has very less to do with education.

2. The people among these states suffer due to lack of proper incentives for educational development.

3. The Government focuses more on metropolitan cities rather than the rural backward areas.

4. Availability of resources In India there are wide disparities in states in terms of availability of resources, availability of schools, colleges, and awareness for education, etc. Hence this is also one of the reasons responsible for the present regional differences in educational attainment.

5. Lack of proper implementation of Government policies. In some of states of India either the benefits of Government policies on education do not reach or if they reach, there is lack of proper implementation. Consequently, the children of these states are deprived of even elementary education.

Question 4.
Bring out the difference between human capital and human development?
Answer:
a. Human capital:
1. Human capital considers education and health as a means to increase labour productivity. It is narrow concepts which treat human beings as means to achieve an end which is higher productivity. Investment in education converts human beings into human capital.

2. Human capital represents enhance labour productivity, which is an acquired ability and an outcome of deliberate investment divisions with the expectations that it will increase future income sources.

3. Human capital treats human beings as a means to an end, the end being the increase in productivity.

b. Human development:
1. It is based on the idea that education and wealth are integral to human well being because only when people have the ability to read and write and the ability to lead a long and healthy life, they will be able to make other choices which they value.

2. Human development treats human beings as ends in themselves because human welfare should be increased through investment in education and health even if such investment does not result in higher labour productivity.

Question 5.
How is human development a broader term as compared to human capital?
Answer:
Human development is far broader concept than human capital. Human development includes all those factors which led to welfare and development of society and its members whereas human capital focuses only on human beings and their contribution to the economy.

Human development includes overall property of human beings through education and health while human capital considers human beings as a source of increasing productivity of the economy.

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Question 6.
What factors contribute to human capital formation?
Answer:
There are various factors which contribute to human capital formation as discussed below:
1. Education:
An educated individual has more knowledge and skills than an uneducated person. Hence, education imparts the neccessary attitude and aptitude for adopting new technologies and efficient management practices which help in raising productivity, education is an important factor in human capital formation.

which leads to higher efficiency and productivity in human beings and thus highter income and standard of living which again facilitates further investment in education and health.

2. Health:
A sound mind in a sound body, like education, investment in health is also considered as an important factor for human capital formation as it directly increases the supply of healthy labour force. A healthy person is an asset for the nation as he is more productive than a sick person who is unable to work efficiently due to bad health.

Therefore, investment in health facilities to build a physically as well as mentally strong human capital is essential for increasing productivity. Preventive medicine (vaccination), curative medicine (medical intervention during illness), social medicine (spread of health literacy) and provision of clean drinking water and good sanitation are the various forms of health expenditures. Health expenditure thus is a source of human capital formation.

3. On the job training:
Firms provide on – the – job training to their workers to enhance their skills which helps in human capital formation. The workers may be trained in the firm itself under the supervision of a skilled worker or the workers may be sent for off-campus training, Expenditure regarding on – the job training is an important factor of human capital formation as the return of such expenditure in the form of enhanced labour productivity is more than the cost involved.

4. Migration:
It contributes to human capital formation as it facilitates utilisation of inactive skills of the people. People from rural areas, migrate to urban areas in search of employment. Technically qualified persons, like engineers and doctors, migrate to other countries because of higher earnings in such countries.

Migration in both these cases involves cost of transport, higher cost of living in the migrated places and psychological costs of adapting to a new socio¬cultural setup. The increase in earnings in the new place outweighs the costs of migration. Hence, expenditure on migration is also a cause of human capital formation.

5. Information:
Information relating to the labour market and other markets is also a factor which contributes to human capital formation. Information regarding the level of salaries in various types of jobs, whether the educational institutions provide the required skills and at what is the associated cost is necessary to make decisions.

regarding investments in human capital as well as for efficient utilization of the acquired human capital stock Information is necessary to make decisions regarding investments in human capital.

Question 7.
How do government organisations facilitate then functioning of schools and hospitals in India?
Answer:
Expenditures on both education and health are to be carried out simultaneously by all the three tiers of the government namely Central Government, State Government and Local Government in India.

The ministries of education at the union and state level, departments of education and various organisations like National Counil of Educational Research and Training (NCERT), University Grants Commission (UGC) and All India Council of Technical Education (AICTE) facilitate institutions such as schools which come under the education sector.

Similarly, the ministries of health at the union and state level, departments of health and various organisations like Indian Council for Medical Research (ICMR) facilitate institutions like hospitals which come under the health sector.

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Question 8.
Education is considered an important input for the development of a nation. How?
Answer:
Education is an important input for the development of a nation because:

  • It provides necessary knowledge and skills to people which helps in increasing their productivity.
  • It creates social awareness and develops mental abilities of people to make right choice at the time of need.
  • It enhances the earnings capacity of an individual which ultimately improve the quality of living of people.
  • An educated person understands the problems of population growth which brings decline in population growth rate. This makes more resources available per person.
  • It helps in acceptance of modernisation and modem techniques which gives boost in development of a nation.

Question 9.
Discuss the following as a source of human capital formation?
Answer:

  1. Health Infrastructure
  2. Expenditure on education.

The Source of human capital formation:

1. Health Infrastructure or Investment on Health:
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 wealth and its importance.
  • Provision of clean drinking water and good sanitation

The healthy individuals are source of human capital as they directly contribute for 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. Hence expenditure on health is an important source of human capital formation.

2. Expenditure on Education:
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. Similarly, the individuals invest in education in order to increase their earnings in the form of money income in future.

Investment on education also promotes individual development which ultimately promotes overall economic growth of the country. The investment on education by an individual provides following benefits:

  • Provide source of knowledge and enhance skills among individuals.
  • Improve efficiency of labour
  • They will be eligible for high salaried jobs.
  • The ordinary individual will turn into essential human capital for economic growth.

Question 10.
Establish the need for acquiring information relating to health and education expenditure for the effective utilisation of human resources.
Answer:
1. The information about availability of jobs, salaries and admissions related information are important for growth of human capital.

2. They enable the people to make better choice between various options available to them and leads to the effective utilisation of human skill and knowledge.

3. Also, investment made on health information improves health, efficiency, quality of living and life expectancy of people. The use of medical information and family welfare programmes ensures the supply of healthy workforce. Various health measures are not adopted due to lack of information can be minimised and helps in effective utilisation of human resources.

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Question 11.
How does investment in human capital contribute to growth?
Answer:
Investment in human capital contributes growth by:
1. Raisins productivity:
The skilled and healthy labours make utilisation of the material inputs and capital effectively which increases productivity and ultimately faster the rate of growth.

2. Innovation :
An educated person has the ability to develop new skills and innovative new techniques that can be more efficient and productive and adds to economic growth.

3. Hish participation rate:
If more people become able to do work through education and health, it will increase the participation rate of people which will accelerate the process of economic growth and development.

Question 12.
There is a downward trend in inequality worldwide with a rise in the average education levels Comment.
Answer:
Access to better education reduces the inequalities of income. Educated person has more ability and skills hence, the income is also higher. This improves the living standard and quality. The importance of education is felt worldwide and Government of nations have been investing heavily in the education sector. When the education rate rises it automatically reduces the inequalities.

Question 13.
Examine the role of education in the economic development of a nation?
Answer:
The role of education in the economic development of a nation are:
1. Knowledge and skills:
It provided people of quality skills and knowledge which enhances their productivity. This gives a greater opportunity to do work and earn high income.

2. Acceptability of modem method:
An educated individual is more able to adapt with new modem techniques which boost the economy of a nation.

3. Eradication of inequality:
Education proves to be an effective tool for reducing inequality. It increases the income earning capacity of economically backward sections of people in a country which reduces the slanted distribution of income.

4. Innovation:
An educated person has the ability to develop new skills and innovate new techniques that can be more efficient and productive which helps in the economic development of a nation.

5. Participation rate:
If a nation has more educated workforce, it will increase the participation rate of people which will accelerate the development of nation.

Question 14.
Explain how investment in education stimulates economic growth?
Answer:
Education is an important source of human capital formation.

  • Investment in education endows people with quality skills and knowledge which enhances their productivity.
  • It make people more able to adopt new modem techniques which helps the economy to grow. It raises the income of living.
  • It generates national development consciousness. Education meet cultural needs and develops human personality. Thus, investment in education increases economic growth.

KSEEB Solutions

Question 15.
Bring out the need for on-the-job-training for a person?
Answer:
1. On-the-job-training is the most effective kind of training to a trainee, imparting him the technical skills and know-how at the actual work site.

2. The worker trained in the firm itself under the assistance of senior and experienced worker. This is needed because it improves the efficiency and morale of employees.

  • It enables the person to absorb the values, norms, and standards of an organisation.
  • It facilitates the better utilisation of raw materials.

Question 16.
Trace the relationship between human capital and economic growth?
Answer:
There is a positive relationship between human capital and economic growth. Human capital formation raises the process of economic growth which leads for growth of human capital formation.

If we want to increase economic growth then we must have to increase our human capital. Unhealthy or uneducated labour cannot add much value of economic growth. We must have to make people educate, about health and skills in order to accelerate our economic growth. It also contributes to information and more participation of people.

Question 17.
Discuss the need for promoting women’s education in India.
Answer:
Women have always 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 for promoting female education in India because of the following reasons:

1. Women education is essential for providing than economic independence and empowering them to save them from exploitation and domestic violence.

2. Women education is essential in order to raise the social status of women so that the quality of life o f women can be improved.

3. Educating women help in promoting family welfare programmes and thus is population control.

4. Educated women are aware of the importance of health care and thus take proper care of their family members contributing in human capital formation.

5. Education a woman means educating a family. An educated woman can inculcate moral values in her children and Can facilitate their education.

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Question 18.
Argue in favor of the need for different forms of government intervention in education and health sectors.
Answer:
There is a need for different forms of government intervention in education and health sectors because:
1. Both private and public institutions are involved in health and education sectors. Therefore, there should be some authority which should monitor their functioning.

2. Private institutions are guided by profit motive so the education and health facilities provided by them is higher.

3. Investment on education and health is to be carried out simultaneously by all different form of Government central, state and local as per the federal structure of India.

4. Government should set up or encourage private institutions to set up their educational and health care centres in remote and rural areas.

5. Government must maintain standard of education and health to develop human resources effectively.

Question 19.
What are the main problems of human capital formation in India?
Answer:
The main problems of human capital formation in India are:

  • The rise in the population
  • The formation of human capital is suffering due to lack of better quality.
  • The brain drain – people migrate from one to place to other place for better jobs and salaries ex: Doctors
  • There is problem of improper Manpower planning

Question 20.
In your view, is it essential for the Government to regulate the fee structure in education and health care institutions? If so, why?
Answer:
Yes, the Government must regulate the fees structure in education and health care institutions. Education and health sectors are two major sources for the formation of good quality of human capital.

The economic growth of a country depends on human capital formation There is a great contribution of private institutions in educational and health care facilities also, the fees of both are very high in private made institutions as these are guided by profit motive. Therefore, intervention in health and education sector to regulate the fees structure is must in order to enhance the quality of human capital.

1st PUC Economics Human Capital Formation in India Additional Questions and Answers

1st PUC Economics Human Capital Formation in India Very Short Answer Type Questions

Question 1.
What is human capital?
Answer:
Human capital refers to the skills, knowledge and experience of their value to an organisation or country, or It refers to the stock of knowledge and skills embodied in the ability of human beings to perform labour and create economic value.

Question 2.
Give the meaning of human capital formation?
Answer:
Human capital formation refers to the process of acquiring and increasing the number of persons who have skills, education and experience which are essential for the economic development of a country.

Question 3.
Expand NCERT?
Answer:
National Council of Educational Research and Training.

Question 4.
Why do people migrate?
Answer:
The people migrate from one place to other place due to :

  • In search of jobs and enhanced salaries.
  • For better higher education
  • For leading better standards of living
  • For better health and infrastructural facilities.

Question 5.
What is the literacy rate in India as per the 2001 census?
Answer:
The total literacy rate of India as per 2011 census is 74%.

KSEEB Solutions

Question 6.
Expand UGC?
Answer:
UGC – Union Grants Commission.

Question 7.
Who began the idea of human capital?
Answer:
The idea of human capital was begun by A.W.Lewis.

Question 8.
Expand AICTE?
Answer:
AICTE – All India Council for Technical Education.

Question 9.
Expand ICMR?
Answer:
ICMR – Indian Council for Medical Research.

Question 10.
Expand DSERT?
Answer:
DSERT – Directorate of State Educational Research and Training.

Question 11.
Which five-year plan gave importance to human capital formation.
Answer:
Seventh five-year plan gave importance to human capital formation.

Question 12.
A professor earns a higher wage than a peon in the college? Why?
Answer:
Because a professor has the skill or abilities to produce more whereas the peon in the college does not have this skill.

Question 13.
What is human developments?
Answer:
Human developments refers to development of individuals as distinct personalities by acquiring good education, training and good health.

Question 14.
What is investment in education?
Answer:
The investment in education refers to spending of money by the parents on the education of their words or children.

Question 15.
What do you mean by health?
Answer:
It is a positive state of physical and mental well being and not only avoidance of disease?

KSEEB Solutions

Question 16.
What is social infrastructure?
Answer:
The elements of social infrastructure are:

  • Education
  • Training
  • Research
  • Health
  • Housing & other civil amenities.

Question 17.
What is meant by human resources development?
Answer:
It means to make people better by increasing their level of productivity and efficiency.

Question 18.
Why is technical education essential?
Answer:
Technical education makes significant contribution in raising efficiency and productivity by encouraging science and technology in the country.

Question 19.
When was new education policy announced?
Answer:
The new education policy was announced in 1987-88.

Question 20.
Name the two communicable diseases yet prevalent in India?
Answer:
Economic development depends on quality, capacity and ability of the people.

Question 21.
What are the benefits of education?
Answer:
The benefits of education are as follows:

  1. The education helps in developing the knowledge or skill in individual.
  2. Education helps in increasing more values and humanity among individuals.
  3. It provides capacity and flexibility to the people and helps them to contribute in the economic development of the country.

Question 22.
What are the functions of medical education?
Answer:
Medical education improves the health of the people and provides appropriate medical facilities at the time of illness.

Question 23.
How is education the most crucial investment in human development?
Answer:
Education strongly influences improvement in

  • health
  • hygiene
  • demographic profile
  • productivity and quality of life.

Question 24.
What is the objective of National Policy of Education?
Answer:
The main objective of National Policy of Education is to provide free and compulsory education to all children up to age of 14 years.

Question 25.
What is the main reason for the rural-urban migration in India?
Answer:
Unemployment is the main reason for rural-urban migration.

Question 26.
What did Deutsche Bank – a German Bank identify about India in its report on Global growth centres?
Answer:
The Deutsche Bank – a German Bank identified that India will emerge as one among four major growth centres in the world by the year 2020.

Question 27.
Which type of education takes a major share of total education expenditure in Lidia?
Answer:
Elementary education takes a major share of total education expenditure in India.

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Question 28.
Through which amendment of the constitution of India, the Government of India made free and compulsory education a fundamental right of all children in the age group 6-14 years?
Answer:
Through 86th amendment of the constitution of India.

1st PUC Economics Human Capital Formation in India Short Answer Type Questions

Question 1.
Why we need to invest on human capital?
Answer:
There is a need to undertake investments in human capital. It is necessary to invest in human resources because to make them more innovative, productive and useful by investing in 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.

Question 2.
Give two reasons for promoting female education in India?
Answer:
The main reasons for promoting female education in India are:

  • It makes women become economically independent.
  • It improves their social status.
  • It provides general education and controls Birth Rate.
  • It prevents superstitious beliefs and promotes scientific thinking.

Question 3.
What is ‘on-the-Job Training’?
Answer:
On the job training is an arrangement where employees develop skills while they are working. This is beneficial for the employees and the organisation. It includes the following:

  • Training the workers in the firm itself under the supervision of a skilled worker.
  • Off-campus training.

Question 4.
How ‘on the job training’ helps Human Capital formation.
Answer:
The on-the-job-training facility helps human capital formation in following ways:

  • The employees come trainees get ample time for learning new methods of production under the supervision of skilled workers.
  • The employees get extra technical skills without incurring any expenditure.
  • The employees will get adjusted to technical advancement and get promotion in their job.
  • It helps in undertaking innovations.

Question 5.
Why do people spend money to acquire information?
Answer:
The on-the-job-training helps human capital formation in following ways:

  1. The employees cum trainees get ample time for learn new methods of production under the supervision of skilled workers.
  2. The employees get extra technical skill without incurring any expenditure.
  3. The employees will get adjusted to technical advancement and get promotion in their jobs.
  4. It helps in undertaking innovations.

Question 6.
Why do people spend money to acquire information?
Answer:
The people spend money to acquire information for the following reasons.
1. To know the labour market (about salary, type of jobs available, schools and colleges for right type of employable skills based education) and other markets like education and health.

2. They spend on the above information to take decisions regarding investments in human capital and for efficient utilization of acquired human capital stock.

KSEEB Solutions

Question 7.
Why do individuals invest in education?
Answer:
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.
  • Similarly, the individuals invest in education in order to increase their earnings in the form of money in future.
  • Investment on education also promotes individual development which ultimately promote the overall economic growth of the country.

Question 8.
Why does human capital lack free mobility?
Answer:
Human capital lacks free mobility due to the following reasons:

  • Due to high cost of transportation
  • Due to high cost of living
  • Regionalism – excessive attachment to once own region
  • Lack of proper information and insecurity feelings about strange places.

Question 9.
Mention the two major sources of human capital in a country?
Answer:
The two major sources of human capital in a country are :

  • Investment in education
  • Investment in health care facilities
  • On-the-job-training.

Question 10.
What are the various forms of health expenditures?
Answer:
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 good sanitation.

Question 11.
Mention the important sources of human capital formation?
Answer:
The major sources of human capital formation are as follows:

  • Investment on education
  • Investment in health care facilities.
  • On-the-job-training
  • Migration and information.

Question 12.
Mention any four institution established to promote education in India?

  • National Council for education, research, and training.
  • Directorate of state educational research and training.
  • University grants commission.
  • All India council for technical education.

Question 13.
Mention any two steps undertaken by the Government to promote education in India?
Answer:
The following measures are in force to promote education in India:

  1. Free and compulsory education up to the age of
  2. Introduction of mid-day meals to attract children to the school.
  3. Free uniforms and free textbooks are provided.
  4. Ksheera Yojana – i.e., supply of milk to school children.
  5. Supply of bicycles to high school children.

Question 14.
Why is education sought?
Answer:
Education is sought as

  1. It confers higher earning capacity
  2. It gives one a better social standing and pride
  3. It enables one to make better choices in life.
  4. It provides knowledge to understand the changes taking place in society
  5. It also stimulated innovations.

KSEEB Solutions

Question 15.
Name any five important powerty alleviation programmes?
Answer:
Following are main poverty alleviation programmes:

  1. National Rural Employment Guarantee Scheme 2006
  2. National Food for Work Programme
  3. Swaranjayanthi Gram Swarozgar Yojana,
  4. Pradhan Manthri Gramodaya Yojana
  5. Anthyodaya Anna Yojana.

Question 16.
Write short notes on following :
Answer:

  1. Navodaya Vidyalayas
  2. Central Schools
  3. Indira Gandhi National Open University (IGNOU)

1. Navodaya Vidhyalayas:
They were established in 1987-88 to given modem education of good standard to talented students of rural areas.

2. Central Schools:
They have been established by the central Government for the benefit of children of transferable employees.

3. Indira Gandhi National Open University:
It was established in September 1985. It is responsible for the introduction and promotion of open university and distance education system on the educational pattern of the country and for the co-ordination and determination of such systems.

Question 17.
Why is the need to promote education for women in India still eminent?
Answer:
The need to promote education for women in India is still eminent for following reasons:

  1. For improving economic independence of women,
  2. For improving social status of women.
  3. For making a favourable inspect of fertility rate and health care of women and children.

1st PUC Economics Human Capital Formation in India Long Answer Type Questions

Question 1.
Explain different sources of human capital formation.
Answer:
The main sources of human capital are :

  1. Investment in education
  2. Health expenditure
  3. On-the-job-training
  4. Information

1. Investment on Education:
spending on education by individuals is similar to spending on capital goods by companies with the objectives of increasing future profits over a period of time likewise individuals general invest on education with the objective of increasing their future income.

Investments on education promote economic growth. It helps in creating more productive force and endouring with increasing knowledge and skills. It also helps in providing wide spread employment and income generating opportunities for the people.

2. Health Expenditure:
Health is an important input for the development of a nation It is also necessary for individual development. Who can work better? A sick person or a person with sound health? A sick labourer is compelled to abstain from work and this leads to loss of productivity.

Hence expenditure on health is an important source of human capital formation. Health expenditure directly increases the supply of healthy labour force and is, thus a source of human capital formation.

3. Expenditure resardins on-the-job-trainins:
On the job training is an arrangement where employees develop skills while they are working. This is beneficial for the employees and the organisation. It saves the organisation extra training costs and gives a working experience for the trainees.

Firms spend on giving on-the-job-training to their workers. This may take any one of the following forms:

  • Training the workers in the firm itself under the supervision of a skilled worker.
  • Off-campus training

In both cases, firms incur some expenses. The firms will insist the workers work for a specific period of time after there on-the-job-training. During that period the firm can recover the benefits of the enhanced productivity owing to the training. Expenditure regarding on-the-job-training is a source of human capital formations as the return of such expenditure in the form of enhanced labour productivity is more than the cost of it.

1.Expenditure on Migration:
People migrate from one place to another in search of jobs and enhanced salaries. The technically qualified persons like Doctors, Engineers, Managers, etc., migrater to other countries to get higher salaries. Hence expenditure on migration is a source of human capital formation.

2. Expenditure on information:
People have to spend to get information relating to the labour market, education and health. Example:

  • People spend money to know the level of salaries offered to different types of jobs.
  • They spend money to know whether the educational institution provides the right of employable skills or not.

This information is necessary to make decisions regarding investments in human capital as well as for efficient utilisation of the acquired human capital stock. Thus, expenditure involved to acquire information relating to labour market, education and health is also a source of human capital formation.

KSEEB Solutions

Question 2.
Explain the role of the Government in human capital formation in India?
Answer:
It is a well known fact that education and health care services create both private and social benefits and this is the reason for the existence of both private and public institutions in the education and health service markets. Expenditures on education and health make substantial long term impact. Hence the Government intervention is essential.
For example:
1. Once a child is taken to school or hospital where the expected services are not available, before the decision is taken to shift to another institution, substantial amount of damage would have been done.

The consumers of these services may not be known the complete information about the quality of services and their costs of services. This may give opportunities to the private sector have monopoly and may involve in overexploitation.

2. The role of Government in this regard is to ensure that the private providers of these services adhere to standards fixed by the Government and to charge fair price for services.

3. The Government of India, under the ministers of education at the union and state level departmentof education and various organisations are working hard to create human capital.

4. The following are the major institutions which are providing intensive education and making human resources of India into human capital:

  • National Council for Education, Research and Training
  • Directorate of State Educational Research and Training
  • University Grants Commission
  • All India Council for Technical Education.

5. Central?MD state Government have been increasing expanditures in the education sector ever the years in order to fulfill the objective of attaining 100% literacy and considerably increase the overage educational attainment of Indians:

6. Recently the Government of India has started imposing 2% education cess on all central Government taxes. The revenues from the education cess has been kept for spending on education.

7. Apart from these, the Government is providing financial assistance to the backward communities and minorities for their higher education.

8. Similarly, the ministries of health at the union and state level, departments of health and various organisations like Indian Council for Medical Research facilitate which come under the health sector.

Question 3.
Explain briefly the major problems of educational development in India?
Answer:
The major problems of educational development in India:
1. Wastage of Resources:
There is a good amount of wastage of resources in our educational system. The dropout rate is very high. It leads to wastage of financial and human resources.

2. Illiteracy:
Illiteracy is one of the most major problem in India because many individuals in backward classes are yet struggling the pursue education.

3. Disparties in Standard:
Wide disparties in educational system exist among different states and educational institutions

4. Lack of Funds:
Most of the educational institutions in India lack funds. They fail to equate themselves with adequate buildings, libraries, laboratories and sports facilities.

5. Problem of Brain Drain:
Intelligent and talented persons are not getting good jobs in the country so they migrate to other countries for better salary and facilities.

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