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

What is the nature of human capital assets?

Intangible

Tangible

None of the above

Both (a) and (b)

2 / 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 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 true but Reason (R) is false.

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

3 / 15

Human development is _____.

Investment in education, health, clean environment, etc.

Narrow concept focusing only on labor productivity

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

Synonym to human capital

4 / 15

Which of the below statements is true about human development?

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.

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

Both first and second

5 / 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

6 / 15

Which of the following could aid in human capital formation?

creating larger industries with more complex equipment

creating open markets with increased stability

expanding the labor market by increasing the supply of jobs

promoting gender equality in the family

7 / 15

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

All

Focus on education for all

Shift from degree oriented to skill-based education

Gender equity

8 / 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.

A is true, but R is false.

A is false, but R is true.

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

9 / 15

Match the Source of Human Capital Formation with its Outcome:

Column A	Column B Options
A. Expenditure on health	1. Enhanced earnings at migrated place
B. On-the-job training	2. Increased labor productivity
C. Expenditure on migration	3. Qualitative improvement in workforce
D. Expenditure on information	4. Efficient utilization of human capital

A – 3, B – 2, C – 1, D – 4

A – 3, B – 1, C – 2, D – 4

A – 3, B – 2, C – 4, D – 1

A – 2, B – 3, C – 1, D – 4

10 / 15

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

It decreases earning capacity of individuals

It increases the labor charge

It increases the efficiency and skill of human capital

It increases the growth of individuals

11 / 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 false, but R is true.

A is true, but R is false.

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

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

12 / 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 – 1, C – 4, D – 2

A – 3, B – 4, C – 1, D – 2

13 / 15

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

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

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

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.

14 / 15

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

a computer science graduate who works at a call center

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

15 / 15

Ms. Ramanpreet has started a new business venture, she intends to spend a huge amount on ‘on-the-job training’ of her workers before putting them to work. It exhibits the right step in the direction of Human Capital Formation.

Spot which of the following does not directly contribute to the process of human capital formation by Ms. Ramanpreet:-

increases output productivity

improves efficiency

ensures gender equity

adds skills and expertise

Your score is

The average score is 71%

Leaderboard – Top Scorers

Check the top scorers here!

Pos.	Name	Score	Duration	Points
1	AFRAH	93 %	4 minutes 11 seconds	14
2	abc	80 %	6 minutes 9 seconds	12
3	akshita	80 %	6 minutes 18 seconds	12
4	lui	73 %	4 minutes 50 seconds	11
5	Siddhi	73 %	8 minutes 45 seconds	11
6	Afrah	73 %	8 minutes 55 seconds	11
7	Nishal	53 %	7 minutes 31 seconds	8
8	p	40 %	10 minutes 30 seconds	6

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

More Class 12 Economics MCQ Quizzes

Take the quiz now and strengthen your exam preparation!

WhatsApp Group Join Now

Telegram Group Join Now

Instagram Follow Now

Spread the love

About the Quiz

Why Take This Quiz?

Leaderboard – Top Scorers

Key Topics Covered in the Quiz

More Class 12 Economics MCQ Quizzes

Related posts:

Leave a Comment Cancel reply