Loading....
Coupon Accepted Successfully!

 

Question-1

What are the sources of Human Capital?

Solution:
One of the main sources of formation of human capital is the investment in education. The other sources are investing in health, in job training, information and migration.

Question-2

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

Solution:
One of the main sources of formation of human capital is the investment in education. The other sources are investing in health, in job training, information and migration

Question-3

What are the indicators of educational achievement in a country?

Solution:

S No.

Particulars

1990(%)

2000(%)

1

Adult Literacy Level (People above 15 years of age)

1.1 Male

1.2 Female




61.9

37.9




68.4

45.4

2

Primary completion rate

2.1 Male

2.2 Female



78

61



85

69

3

Youth Literacy level (People aged 15-24)

3.1 Male

3.2 Female



76.6

54.2



79.7

64.8

 

Question-4

Why do we observe regional differences in educational attainment in India?

Solution:
Intermediary or tertiary education ( colleges, polytechnics etc) take the minimum share. . The expansion of school education needs more teachers who have had collegiate education. The inadequacy of the amount spent on education can be understood by studying the desired level of educational expense which has been recommended by the various commissions.

Question-5

Bring out the differences between human capital and human development.

Solution:

 

S. NO

Human Capital

Human Development

1.

human capital considers education and health as means of increased productivity of the workforce

human development is formed on the idea that education and health are an integral part for human well-being.

2.

Human capital treats human beings as the means to increase productivity.

Human development has its basis on education and health as it is quite plain that unless the people are educated and are healthy they will not be able to make the choices that they value

 

Question-6

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

Solution:
Human development, on the other hand, treats human beings as ends in themselves meaning any investment in unproductive education and health is still essential for the well being of the human beings. In this view, basic education and basic health are important irrespective of their contribution to the economic growth and hence every individual has a right to have their access.

Question-7

What factors contribute to human capital formation?

Solution:
Education and health are the main sources for the formation of human capital.

Question-8

Mention two government organizations each that regulate the health and education sectors.

Solution:
In India, the education sector is regulated by organizations like National Council of Educational Research and Training( NCERT), University Grants Commission (UGC) and All India Council of Technical Education (AICTE) and also by the ministries of education at the union and state level. The ministries of health at the union and state level and various organizations like Indian Council of Medical Research (ICMR) regulate the health sector.

Question-9

Education is considered an important input for the development of a nation. How?

Solution:
The percentage of educational expenditure in both the total government expenditure and in GDP shows the fact that the government is committed to improve the educational status of our country. Out of the total expenditure on education, elementary education takes the maximum share. Intermediary or tertiary education ( colleges, polytechnics etc) take the minimum share.

Question-10

Discuss the following as a sources of human capital formation (i) Health infrastructure

Solution:
Health infrastructure

The Government should provide health services free of cost for the deserving citizens and those from the socially deprived sections of the society. This is done in order to improve the health condition of the people and thereby educate them and improve their social status in the society.

Question-11

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

Solution:
In our country many people are below the poverty line and hence cannot access basic education and health care facilities. Also, a huge segment of the population cannot afford higher education and super specialty health services. Therefore, it is very important that the government provides education and health as free for the poor and those who cannot access them. In India, over the last few years, the governments at both the centre and state have increased the expenditure on health and education services in order to cater for the needs of the deserving.

Question-12

How does investment in human capital contribute to growth?

Solution:
Human development is based on their education and well-being. If their health is taken proper care, it will automatically bring in more labour into the employment sector. If health is taken care of, them more number of people will be educated and this will also generate more number of skilled labour for employment.

Question-13

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

Solution:
The difference in the levels of literacy of men and women is narrowing down indicating that the gender inequality is getting eradicated. Women education has to be promoted and encouraged even further in order to improve economic independence, social status of women and to have a positive impact on the fertility rate and health care of women and children. We cannot be complacent about the fact that gender equality is on a positive growth because we have to achieve a hundred percent literacy level.

Question-14

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

Solution:
An increased productivity of the human capital contributes significantly towards increasing the labour productivity and also encourages innovations and helps in the absorption of new technologies. Education provides knowledge and helps in understanding the changes that happen in the society. Education acts as a facilitator to promote new inventions and innovations. An educated labour force also encourages the adoption of new technologies.

Question-15

Explain how investment in education stimulates economic growth.

Solution:
The Indian education scenario seems to have very few takers for higher education. Also, the unemployment level of the youth with higher education is more than those with elementary education. According to the NSSO report, in the year 2000, 7.1& was the rate of the youth with higher education whereas for those with just primary education was just 1.2%. The government should allocate funds to promote the higher education and also the education imparted should make the youth employable.

Question-16

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

Solution:
On-job-training provides the person the necessary training that he/she requires to perform the job with their maximum efforts. With the necessary training, the job will be complete within less time than the job performed without training. Moreover, the time taken to complete the job will also be less for the labour employed. This is so because, the method to perform the job will be clear after the training after the person acquires the special skill to perform the job.

Question-17

Trace the relationship between human capital and economic growth.

Solution:
An increased productivity of the human capital contributes significantly towards increasing the labour productivity and also encourages innovations and helps in the absorption of new technologies. Education provides knowledge and helps in understanding the changes that happen in the society. Education acts as a facilitator to promote new inventions and innovations. An educated labour force also encourages the adoption of new technologies.

Question-18

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

Solution:
Women education has to be promoted and encouraged even further in order to improve economic independence, social status of women and to have a positive impact on the fertility rate and health care of women and children. We cannot be complacent about the fact that gender equality is on a positive growth because we have to achieve a hundred percent literacy level.

Question-19

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

Solution:
Despite the fact that the literacy levels have increased, the absolute number of illiterate people in India is still large and almost equal to the number that was during the time of independence. The Constitution of India which was passed by the Constituent Assembly in 1950 noted in its Directives of Constitution that the government should provide free and compulsory education for children upto 14 years of age. This was to start within ten years of commencement of the constitution. If we had achieved the above mentioned target, we would have been a hundred percent literate country by today. We will first see why we need government intervention in the sectors related to education and health. We have clearly stated why we need investments in education and health sectors. The investments will have long term impacts which are not easily reversible. This is the main reason why government intervention is essential. For example, once a student is admitted in a school or health care centre and a decision to shift the child is taken, a significant amount of damage would be done. Also, individual consumers that is the members of the society do not have complete information about the costs and the quality of service rendered. In such a case, the providers of health and education can exploit by enjoying monopoly. The government plays a key role here, by ensuring that the private providers of education and health adhere to the standards given by the government and charge the correct rates.

Question-20

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

Solution:
In our country many people are below the poverty line and hence cannot access basic education and health care facilities. Also, a huge segment of the population cannot afford higher education and super specialty health services. Therefore, it is very important that the government provides education and health as free for the poor and those who cannot access them. In India, over the last few years, the governments at both the centre and state have increased the expenditure on health and education services in order to cater for the needs of the deserving.

Question-21

In your view, is it essential for the government to regulate the fee

Solution:
Through the 86th Amendment of the constitution, the government made education free and compulsory for all children within the age group 6-14 in the year 2002. In 1998, the Government of India appointed the Tapas Majumdar committee which estimated a cost of Rs.1.37 lakh crore over 10 years between 1998-99 to 2006-07 in order to bring all the Indian children belonging to the age group between 6-14 within the purview of school education. The current levels of 4% of GDP has not been enough for education and in the coming years 6% of GDP has been viewed as very essential.




Test Your Skills Now!
Take a Quiz now
Reviewer Name