Human Capital Formation in India Class 12 MCQ Quiz – Test Your Understanding!

Are you ready to test your knowledge of Human Capital Formation in India from the Class 12 Economics syllabus? This chapter explains how education, health, and skill development contribute to economic growth by enhancing the productivity of individuals.

About the Quiz

Chapter Name: Human Capital Formation in India
Subject: Economics
Book: NCERT Class 12 Economics
Question Type: Multiple Choice Questions (MCQs)
Leaderboard: Yes (Check Your Rank!)

Why Take This Quiz?

✔ Helps in CBSE board exam revision
✔ Strengthens understanding of the role of education and health in economic growth
✔ Enhances knowledge of government initiatives for human capital formation
✔ Track your progress with the leaderboard

Click Below to Start the Quiz!

Chapter 4 Human Capital Formation in India

1 / 15

Which of the following could aid in human capital formation?

expanding the labor market by increasing the supply of jobs

creating open markets with increased stability

promoting gender equality in the family

creating larger industries with more complex equipment

2 / 15

Human development is _____.

Process of widening people’s choices as well as raising the level of well-being

Narrow concept focusing only on labor productivity

Investment in education, health, clean environment, etc.

Synonym to human capital

3 / 15

Who amongst the following, has received the greatest investment in human capital formation?

a 12-year-old who helps her mother with construction work

a 10th-pass girl who works as a store manager in a mall

a nurse in a clinic who is frequently absent because of his ill health

a computer science graduate who works at a call center

4 / 15

Match the situations given in Column I with their respective implications given in Column II:

Column I	Column II
A. Migration	i. reduced in per capita economic growth
B. Low level of academic standards	ii. An imbalance between demand and supply of human resource
C. Population- High Growth rate	iii. Brain Drain
D. Lack of proper manpower planning	iv. Mismatch between required skill and academic standards

Also See: CBSE Class 12 English Sample Paper 2023-24 with Solutions

A-iii; B-iv; C-i; D-ii

A-ii; B-iii; C-iv; D-i

A-ii; B-iv, C-i; D-iii

A-i; B-ii; C-iii; D-iv

5 / 15

Which of the following is the CORRECT difference between physical and human capital?

Physical capital can be sold but human capital cannot be sold.

Physical capital provides both private and social benefits while human capital provides only social benefits.

The depreciation of physical capital can be arrested with more investment while human capital will continue to deplete.

Physical capital cannot be separated from its owner while human capital can.

6 / 15

Match the situations given in Column I with their respective implications given in Column II:

Column I	Column II
A. Migration	i. reduced in per capita economic growth
B. Low level of academic standards	ii. An imbalance between demand and supply of human resource
C. Population- High Growth rate	iii. Brain Drain
D. Lack of proper manpower planning	iv. Mismatch between required skill and academic standards

A-iii; B-iv; C-i; D-ii

A-i; B-ii; C-iii; D-iv

A-ii; B-iv, C-i; D-iii

A-ii; B-iii; C-iv; D-i

7 / 15

To increase future prospects in the education sector, the Government should:

Shift from degree oriented to skill-based education

Gender equity

Focus on education for all

All

8 / 15

Which statement can be said to best describe the importance of expenditure on education?

It increases the labor charge

It decreases earning capacity of individuals

It increases the efficiency and skill of human capital

It increases the growth of individuals

9 / 15

Which of the below statements is true about human development?

It is an end in itself.

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

Both first and second

It considers that investment in health and education is unproductive if it does not increase the output of goods and services.

10 / 15

Also See: CBSE Class 12 Chemistry Syllabus 2025-26: Download PDF & Full Exam Pattern

Read the following statements - Assertion (A) and Reason (R):

Assertion (A) – Human capital treats human beings as a means to an end (increase in productivity).

Reason(R) – Human Capital Formation decreases by way of investments in education and health.

Assertion (A) is true but Reason (R) is false.

Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A).

Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation of Assertion (A).

Assertion (A) is false but Reason (R) is true.

11 / 15

Assertion (A): Human development treats education and health as ends in themselves, unlike human capital.
Reason (R): Human capital focuses solely on increasing labor productivity through education and health investments.

Both A and R are true, and R is the correct explanation of A.

A is false, but R is true.

A is true, but R is false.

Both A and R are true, but R is not the correct explanation of A.

12 / 15

Assertion (A): The National Education Policy 2020 emphasizes the need for a skilled workforce in fields like data science and AI.
Reason (R): Technological advances are reducing the demand for unskilled labor globally.

A is true, but R is false.

Both A and R are true, but R is not the correct explanation of A.

A is false, but R is true.

Both A and R are true, and R is the correct explanation of A.

13 / 15

Match the Organization with its Role in India’s Education/Health Sector:

Column A	Column B Options
A. NCERT	1. Regulates medical education
B. UGC	2. Develops educational resources
C. National Medical Commission	3. Oversees higher education funding
D. ICMR	4. Conducts health research

A – 3, B – 2, C – 1, D – 4

A – 2, B – 1, C – 3, D – 4

A – 2, B – 3, C – 4, D – 1

A – 2, B – 3, C – 1, D – 4

14 / 15

Assertion (A): Physical capital can be traded in the market, unlike human capital.
Reason (R): Human capital is intangible and inseparable from its owner, while physical capital is tangible.

Both A and R are true, but R is not the correct explanation of A.

A is true, but R is false.

Both A and R are true, and R is the correct explanation of A.

A is false, but R is true.

15 / 15

Which of the following is an example of preventive medicine?

Vaccination

Provision of clean drinking water

Medical intervention during illness

Spread of health literacy

Your score is

The average score is 60%

Leaderboard – Top Scorers

Check the top scorers here!

Pos.	Name	Score	Duration	Points
1	Gazal	100 %	2 minutes 12 seconds	15
2	AFRAH	93 %	4 minutes 11 seconds	14
3	Gazal	80 %	5 minutes 10 seconds	12
4	rohila	80 %	5 minutes 44 seconds	12
5	abc	80 %	6 minutes 9 seconds	12
6	akshita	80 %	6 minutes 18 seconds	12
7	lui	73 %	4 minutes 50 seconds	11
8	Siddhi	73 %	8 minutes 45 seconds	11
9	Afrah	73 %	8 minutes 55 seconds	11
10	Rr	67 %	4 minutes 27 seconds	10
11	Gazal	67 %	6 minutes 19 seconds	10
12	A	60 %	3 minutes 6 seconds	9
13	Suhani	60 %	4 minutes 53 seconds	9
14	Happy	60 %	6 minutes 19 seconds	9
15	Abc	60 %	11 minutes 52 seconds	9
16	Nishal	53 %	7 minutes 31 seconds	8
17	xyz	47 %	3 minutes 59 seconds	7
18	VANSH KING	40 %	4 minutes 44 seconds	6
19	p	40 %	10 minutes 30 seconds	6
20	Suryank	33 %	9 minutes 33 seconds	5
21	S	27 %	2 minutes 32 seconds	4
22	Gargi	27 %	3 minutes 7 seconds	4
23	Jiya	0 %	2 minutes 5 seconds	0

Key Topics Covered in the Quiz

✔ Meaning and importance of Human Capital Formation
✔ Difference between Human Capital and Human Development
✔ Sources of Human Capital Formation (Education, Health, On-the-Job Training, Migration, Information)
✔ Role of Government in Human Capital Formation
✔ Challenges in Human Capital Development in India

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About the Quiz

Why Take This Quiz?

Leaderboard – Top Scorers

Key Topics Covered in the Quiz

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