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

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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

Human development is _____.

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

Synonym to human capital

Narrow concept focusing only on labor productivity

Investment in education, health, clean environment, etc.

2 / 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 – 2, B – 3, C – 1, D – 4

A – 3, B – 2, C – 1, D – 4

A – 2, B – 3, C – 4, D – 1

A – 2, B – 1, C – 3, D – 4

3 / 15

Which of the following is an example of preventive medicine?

Provision of clean drinking water

Spread of health literacy

Medical intervention during illness

Vaccination

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 Single Girl Child Scholarship 2025 – Complete Overview

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

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

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

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

5 / 15

Which of the below statements is true about human development?

Both first and second

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

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

It is an end in itself.

6 / 15

What is the nature of human capital assets?

Tangible

Both (a) and (b)

Intangible

None of the above

7 / 15

Read the following statements carefully.

Statement 1: On-the-job training help to bridge the gap between theoretical concepts and practical experiences.

Statement 2: On-the-job training updates the employees, with the latest changes in their work field.

Statement 1 is true and statement 2 is false

Statement 1 is false and statement 2 is true

Both statements 1 and 2 are true

Both statements 1 and 2 are false

8 / 15

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

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

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

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

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

9 / 15

Which of the following could aid in human capital formation?

creating larger industries with more complex equipment

expanding the labor market by increasing the supply of jobs

creating open markets with increased stability

promoting gender equality in the family

10 / 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, but R is not the correct explanation of A.

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.

11 / 15

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.

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.

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

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

12 / 15

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

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

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

a computer science graduate who works at a call center

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

13 / 15

Match the Statistic with its Context (1952-2014):

Column A	Column B
A. 7.92% to 15.7%	1. Education expenditure as % of GDP
B. 0.64% to 4.13%	2. Unemployment rate of graduates
C. 6%	3. Education expenditure as % of total govt spending
D. 19%	4. Recommended education spending by Education Commission

A – 3, B – 1, C – 2, D – 4

A – 1, B – 3, C – 4, D – 2

A – 3, B – 4, C – 1, D – 2

A – 3, B – 1, C – 4, D – 2

14 / 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.

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

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

A is true, but R is false.

A is false, but R is true.

15 / 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.

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

A is true, but R is false.

A is false, but R is true.

Your score is

The average score is 72%

Leaderboard – Top Scorers

Check the top scorers here!

Pos.	Name	Score	Duration	Points
1	V	87 %	9 minutes 33 seconds	13
2	Va	80 %	6 minutes 20 seconds	12
3	Mouli Gupta	80 %	9 minutes 1 seconds	12
4	V	80 %	12 minutes 1 seconds	12
5	V	67 %	8 minutes 9 seconds	10
6	nancy	60 %	9 minutes 28 seconds	9
7	Anika	53 %	4 minutes 57 seconds	8

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

About the Quiz

Why Take This Quiz?

Leaderboard – Top Scorers

Key Topics Covered in the Quiz

More Class 12 Economics MCQ Quizzes

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About the Quiz

Why Take This Quiz?

Leaderboard – Top Scorers

Key Topics Covered in the Quiz

More Class 12 Economics MCQ Quizzes

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