[NCERT] Human Capital Formation In India Solutions for class 12 Indian Economic Development

Human Capital Formation in India NCERT Solutions for class 12 Chapter 4 of Indian Economic Development

NCERT Textual Question with Answers

Q. 1. What are the two major sources of human capital in a country?

Ans.

Two main factors that contribute to human capital in a country are:

(1) Health:

Good health is really important for human capital. When people are healthy, they have more energy and can be more active, which helps them contribute to the community and the economy.

(2) Education:

Education is crucial for developing human capital. When individuals are educated, they are better prepared to learn about new technologies and can help boost the overall productivity of the country.

Q. 2. What are the indicators of educational achievement in a country?

Ans.

(1) Primary Education Completion Rate

The primary education completion rate tells us what percentage of students finish their final year of primary school. This includes kids aged 6 to 14 who have completed Classes 1 to 8. When this rate is low, it can lead to lower literacy rates among young people and, eventually, adults.

(2) Youth Literacy Rate

The youth literacy rate indicates how many people between the ages of 15 and 24 can read and write. Since young people are the future of our country, having a well-educated youth is crucial for the nation’s growth and progress.

(3) Adult Literacy Rate

The adult literacy rate measures how many people over the age of 15 can read and write. It is shown as a percentage, and a higher rate usually means more job opportunities. This group is very important because literate individuals are better prepared to handle various tasks. Overall, this rate is a key sign of how many people can contribute to economic growth.

Q. 3. Why do we observe regional differences in educational attainment in India?

Ans.

(i) Regional Inequality in Incomes:-

In India, education levels vary by region due to differences in income. Richer states like Maharashtra and Karnataka have better schools and colleges, while poorer states like Bihar and Uttar Pradesh struggle with low funding, fewer teachers, and poor facilities. Higher income leads to better education, creating regional gaps in learning opportunities.

(ii) Disparities in expenditure by government on development of educational facilities:-

In India, education levels differ across regions because the government spends unevenly on schools and colleges. Wealthier states like Tamil Nadu and Kerala get more funds for goods teachers, classrooms, and technology. Poorer states like Bihar and Jharkhand receive less, leading to weaker education systems and fewer opportunities for students.

Q. 4 Bring out the differences between human capital and human development.

Ans.

The differences between human capital and human development can be summarized as follows:

(i) Human capital looks at education and health mainly as ways to boost productivity at work. In contrast, human development views education and health as essential parts of everyone’s overall well-being.

(ii) Human capital sees people as tools to help increase productivity. It believes that any money spent on education and health is wasted if it doesn’t lead to producing more goods and services. On the flip side, human development sees people as valuable in their own right. It argues that we should invest in education and health to improve people’s lives, even if those investments don’t directly lead to more productivity at work.

Q. 5. How is human development a broader term as compared to human capital?

Ans.

Human development is a bigger idea than human capital for a couple of reasons:

• First, human capital sees people as tools to achieve goals, while human development recognizes that people have their own worth and should be valued for who they are.

• Second, the idea of human capital suggests that spending money on education and health does not really help produce more goods and services. In contrast, human development believes that improving people’s well-being through education and health care is important, even if these investments don’t directly boost productivity in the workplace.

So, in summary, human development is a wider concept than human capital.

Q. 6. What factors contribute to human capital formation?

Ans.

The factors that help in building human capital are:

1. Expenditure on education: Education improves a person’s social standing and helps them learn new skills and technologies. When more people are educated, it boosts the economy of the country.
2. Expenditure on health: Investing in health increases how productive and efficient people can be. A healthy person is more likely to work better and is considered valuable to the nation.
3. Expenditure on On-the-job training: Training allows people to learn skills more effectively and is one of the best ways to boost productivity. It lays the foundation for further learning and helps individuals become more skilled.
4. Expenditure on Migration: Migration is when people move from poorer or developing countries to richer, developed ones. This movement helps people use and improve their skills. When they return, they can share their knowledge, which can help their home country grow.
5. Expenditure on Information: Knowing about the availability of school admissions, job opportunities, and salary ranges is very important for developing human capital. Good information helps attract the best students to the right fields, and access to health information keeps people safe. So, sharing information is important for building strong human capital.

Q. 7. How government organisations facilitate the functioning of schools and hospitals in India?

Ans.

The government plays a key role in how schools and hospitals operate in India. To improve education and health services, it has established several organizations.

In the education sector, both the central and state governments have ministries focused on education. There are also important organizations like the National Council of Educational Research and Training (NCERT), the University Grants Commission (UGC), and the All India Council of Technical Education (AICTE) that oversee education.

In terms of health, the ministries of health at the central and state levels, along with various departments and organizations like the Indian Council for Medical Research, make sure that the health system works properly.

Q. 8. Education is considered to be an important input for the development of a nation. How?

Ans.

The progress of a country greatly relies on how educated its people are. Here are some key reasons why education is so important for a nation:

1. When people are educated, they can work better and use their skills to earn a good income, which helps improve the country’s overall development.
2. Education enables individuals to make smart choices. It plays a crucial role in building a strong society and nurturing responsible citizens.
3. An educated population is more open to new ideas and modern methods. This willingness to adapt helps boost the economy.
4. With a well-educated population, income levels tend to be more balanced, leading to fairer distribution of wealth.
5. Education empowers people to earn money, which leads to better living conditions and an improved quality of life.

Q. 9. Discuss the following as a source of human capital formation

(i) Health Infrastructure

(ii) Expenditure on migration

Ans.

(i) Health Infrastructure:

Health plays a crucial role in developing human resources because it leads to a healthier workforce.

When people are in poor health or lack proper nutrition, the quality of the workforce suffers. Sick employees who don’t have access to medical care may have to take time off work, which decreases productivity.

That’s why spending on health is essential for creating and maintaining a productive workforce and for improving the overall well-being of society.

Providing enough food and proper nutrition, along with good health and sanitation services, can significantly enhance human resources.

Types of Health Expenditures: There are several types of health-related spending, which include:

(a) Preventive Care, such as vaccinations;

(b) Curative Care, which involves medical treatment during illnesses;

(c) Social Medicine, that promotes health education;

(d) Access to clean drinking water;

(e) Good sanitation facilities.

(ii) Expenditure on Migration:

People often move from one place to another to find jobs that pay better salaries.

For example, unemployed individuals from rural areas often head to cities in search of work.

Similarly, professionals like engineers and doctors may migrate to other countries to earn higher salaries.

In both scenarios, migration comes with two main costs: (a) the cost of transportation from one location to another, and (b) the higher cost of living in the new place.

However, spending money on migration can actually help people build their skills and earn more. The increased earnings in the new location usually outweigh the additional costs of moving.

Q. 10. Establish the need for acquiring information relating to health and education expenditure for the effective utilisation of human resources.

Ans.

Spending money on education and health has a big impact for a long time, and once it’s done, it’s hard to change.

For instance, if a child starts going to a school or a healthcare center but doesn’t get the proper help they need, a lot of harm could be done before anyone decides to move the child somewhere else.

That’s why it’s really important to have good information about how money is spent on health and education. This helps ensure that our human resources are used effectively.

Q. 11. How does investment in human capital contribute to growth?

Ans.

Investing in people’s education and health is important for the economy to grow:

(i) More production and better work:

An educated person can produce more than someone who is not educated. Also, a healthy person can work longer and more efficiently, helping the economy by providing a steady supply of labor.

(ii) Encourages new ideas and technology:

When we develop our human skills and knowledge, not only does it improve how effectively we work, but it also inspires new inventions and helps us adapt to new technologies. Education gives us the knowledge to understand changes in our world and scientific progress, making it easier to come up with new ideas. Additionally, having a skilled workforce allows us to embrace and use new technologies more effectively.

Q. 12. ‘There is a downward trend in inequality world-wide with a rise in the average education levels’. Comment.

Ans.

The statement is true. An educated person usually has better skills than someone who isn’t educated, which helps them earn more money.

With a higher income and the ability to use modern techniques, their standard of living improves.

This means that the gap between rich and poor people is slowly getting smaller. So, when more people receive a good education, it helps reduce income inequality around the world.

Q. 13. Examine the role of education in the economic development of a nation.

Ans.

Education plays a crucial role in the growth and development of a nation. Here are some key points about its importance:

1. Education helps people learn new skills, which can boost their productivity and increase their ability to earn money.
2. It enhances our thinking abilities, allowing us to make better choices. Education also teaches us good values.
3. An educated person is more likely to embrace new ideas and modern techniques that are beneficial for the country’s economy.
4. Education can lead to higher incomes and helps make the distribution of wealth in society more even.
5. It encourages more people to participate in economic activities, leading to overall economic growth and improvement in people’s lives.
6. Education is not just about learning subjects; it also contributes to improving the economy and addressing important issues like population growth, poverty, and using resources effectively.

Q. 14. Explain how investment in education stimulates economic growth.

Ans.

Education plays a crucial role in the growth and development of a nation. Here are some key points about its importance:

1. Education helps people learn new skills, which can boost their productivity and increase their ability to earn money.
2. It enhances our thinking abilities, allowing us to make better choices. Education also teaches us good values.
3. An educated person is more likely to embrace new ideas and modern techniques that are beneficial for the country’s economy.
4. Education can lead to higher incomes and helps make the distribution of wealth in society more even.
5. It encourages more people to participate in economic activities, leading to overall economic growth and improvement in people’s lives.
6. Education is not just about learning subjects; it also contributes to improving the economy and addressing important issues like population growth, poverty, and using resources effectively.

Q. 15. Bring out the need for on-the-job-training for a person.

Ans.

Improving human skills can really boost how well machines and tools work. Because of this, many companies offer training for their employees while they work.

This type of training is beneficial because it can be done quickly and doesn’t cost a lot of money.

It helps workers become more skilled and efficient, which leads to higher production and better overall productivity.

On-the-job training can happen in different ways:

(a) Workers can be trained at their workplace by a more experienced coworker;

(b) Workers can also go to special training sessions outside the company.

After employees finish their training, companies often require them to stay and work for a certain time. This way, the company can benefit from the workers’ improved productivity.

This training is a good investment because the increase in how much work the employees can do will be greater than the money spent on training them.

Q. 16. Trace the relationship between human capital and economic growth.

Ans.

Human capital is important for economic growth in a few key ways:

1. Skilled workers improve how things are made, leading to better products. When companies produce high-quality goods, they earn more money, which helps the economy grow.
2. Workers who are educated and skilled can come up with new ideas that cut costs and make processes more efficient. This innovation also leads to economic growth.
3. People with strong technical skills can inspire others to learn and develop similar skills. This teamwork and involvement contribute to the overall growth and progress of the nation.

Q. 17. Discuss the need for promoting women’s education in India.

Ans.

Indian society has often focused more on men when it comes to education, which has led to a lower literacy rate among women. This situation also affects the whole economy because women, who are part of the workforce, can’t contribute fully when they are treated unequally. For a nation to thrive, it’s crucial to ensure equal rights for both men and women. Women play an essential role in driving economic growth, so it’s important to educate them. Here are some points to support the need for female education:

1. Educating women can lead to better economic stability.
2. When women are educated, their status in society improves, which helps in the overall progress of our community.
3. An educated woman will pass on valuable lessons to the next generation.
4. A woman with an education is likely to be more aware of health issues, leading to better health for her family and improved fertility rates.
5. To improve economic independence and social status of woman

Q. 18. Argue in favour of the need for different forms of government intervention in education and health sectors.

Ans.

Government spending on education and health is really important for building strong human capital. To make sure these investments give us good results, it’s crucial for the government to step in. Here are a few reasons why:

(i) Money spent on education and health can have a big impact in the long run, and it’s not easy to change once it’s set. For instance, if a child starts attending a school or a healthcare center that doesn’t provide the necessary services, a lot of harm may be done before parents decide to move the child to a better place.

(ii) People who use these services often don’t have all the information they need about how good the services are or how much they should cost.

(iii) Sometimes, the companies providing education and health services can become too powerful and might take advantage of people.

So, it’s important for the government to make sure that private service providers follow the rules and charge fair prices.

Q. 19. What are the main problems of human capital formation in India?

Ans.

The different issues related to building human capital are:

(i) Not enough resources:

The money and tools set aside for developing human skills are much lower than what is needed. Because of this, the programs for building human capital are not enough.

(ii) Major inefficiencies:

A lot of resources are wasted because educated people either can’t find jobs (unemployment) or their skills are not fully used (underemployment). There is also a big problem with illiteracy, many children not getting an education, and poor health services that have not been properly addressed.

(iii) Brain Drain:

Many people move from one place to another in search of better job prospects and higher salaries. This leads to a loss of skilled individuals, like doctors and engineers, who are hard to find in a developing country. The cost of losing such valuable human talent is very high.

(iv) Rapid population growth:

The ongoing increase in population negatively affects the quality of human capital because it lowers the availability of resources per person.

(v) Various imbalances:

More resources have been directed towards higher education, which benefits only a few, instead of investing in primary and secondary education. As a result, the overall productivity of the economy remains low.

(vi) Lack of proper manpower planning:

There is a mismatch between the need for and the availability of human resources in different areas, especially for highly skilled workers. This mismatch leads to wasted resources.

(vii) Weak science and technology:

When it comes to education, the situation is especially poor in science and the development of modern technology.

Q. 20. In your view, is it essential for the government to regulate the fee structure in education and health care institutions? If so, why?

Ans.

It’s really important for the government to step in and manage the fees that schools and hospitals charge. Here’s why:

(i) People who use these services often don’t have all the information they need about what they’re paying for or how good the services are.

(ii) Sometimes, schools and healthcare providers can become too powerful and might take advantage of people by asking for very high fees.

So, the government plays a key role in making sure that private schools and healthcare services follow the rules set by the government and charge fair prices.