Assertion Reason: Human Capital Formation in India




1. Assertion (A): High level of human capital implies not only high earning potential but also change in the social and economic outlook. Reason (R): It transforms the way of thinking and allow an individual to make well-informed and rational decisions.




... Answer is A)



2. Assertion (A): Study programmes for adults enhance their productivity. Reason (R): Migration does not promote human capital formation.




... Answer is C)



3.Assertion (A): Human capital formation increases productivity of physical capital. Reason (R): Larger the number of skilled and trained personnel, lesser the possibility of innovations, inventions and technical improvements in the area of production.




... Answer is C)



4.Assertion (A): There is a need to bridge the skill-gap in India in order to enhance human capital and bring about more productive labour force. Reason (R): Skills are tangible in nature and can be separated from its owner.




... Answer is C)



5.Assertion (A): Human capital formation refers to adding on to the existing stock of skill, expertise and talent of people. Reason (R): Expenditure on information is not a determinant of human capital formation.




... Answer is C)



6. Assertion (A): People migrate because that can fetch them high earning jobs than what they get in their native places/ countries. Reason (R): Enhanced earnings in the new place exceeds the cost of migration.




... Answer is A)



7. Assertion (A): Human capital is a means in the process of value-addition in the economy. Reason (R): Human development is an index of human welfare, irrespective of its contribution in the process of value- addition.




... Answer is B)



8.Assertion (A): Brain drain is a serious threat to the process of human capital formation in the country. Reason (R): People of high calibre such as scientists, engineers, educationists, etc, may decide to migrate.




... Answer is A)



9. Assertion (A): Education is wider concept and encompasses literacy. Reason (R): A person is considered literate if he has ability to read and write in any language. A person is educated if he can find a work and can earn some income.




... Answer is C)



10. Assertion (A): Rapidly rising population adversely affects the quality of human capital. Reason (R): Population reduces per head availability of the existing facilities relating to housing, sanitation, drainage, etc.




... Answer is A)



11.Assertion (A): The spread of education is necessary to control the population growth rate. Reason (R): Human capital formation decreases the quality of life




... Answer is C)



12.Assertion (A): Literacy rate in India have increased but so has the absolute number of illiterates. Reason (R): Literacy rates have increased mainly because of the growth in educational facilities. however the absolute number of illiterates have increased because of tremendous increase in population.




... Answer is A)



13. Assertion (A): Depreciation of human capital can be avoided through continuous investment in education, training and health. Reason (R): Investment in regular training to keep up with innovations help human capital to avoid depreciation.




... Answer is A)



14.Assertion (A): The facilities for the formation of human capital have remained adequate. Reason (R): The resources allocated to human capital formation have been much less than the resources required.




... Answer is D)



15.Assertion (A): An educated woman can make well informed decisions and can reduce the rate of growth of population. Reason (R): It favourably affects the fertility rate as educated woman do not wish to expand the size of their families unnecessarily.




... Answer is A)



16. Assertion (A): Human capital is intangible and it cannot be sold in the market. Reason (R): The movement of human capital is restricted by culture and is not perfectly mobile.




... Answer is B)



17. Assertion (A): Economic growth and human capital formation are directly proportional. Reason (R): Economic growth leads to increase in availability of resources for all in the economy.




... Answer is A)



18.Assertion (A): On-the-job-training helps workers to sharpen their skills. Reason (R): The efficiency of a worker can never be changed.




... Answer is C)



19.Assertion (A): Human poverty is a state of absolute deprivation and loss of human resources. Reason (R): Inability of an individual to fulfil basic life needs pushes to the state of loss of self confidence.




... Answer is A)



20. Assertion (A): Lack of man power planning in India has led to unemployment in the country. Reason (R): Human development and economic growth reinforced each other.




... Answer is A)

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