I. Answer the following question in twelve sentences each.

(Each question
carries four marks)
1) Education is considered to be an important input for the development of the
nation. How?
Education is the process of teaching, training and learning especially in
schools,colleges, to improve knowledge and develop skills.
Education is considered to be an important input for the development of the
nation because
1.An educated person is more skilled than an uneducated person.
2. The contribution of an educated person to economic growth is more than that of
an illiterate person.
3.Education provides knowledge to understand changes in the society.
5. It facilitates scientific advancement, inventions and innovations.
6.Availability of educated labour force is required to adapt new technologies.
7. Education produces good citizens.
8.Education facilitates use of resources in the country.
9.Expands mental horizon of the people.
10.Promotes cultural standard of the citizens.
11. Develops human personality
2) How does investment in human capital contribute to growth?
Economic growth means increase in real national income of a country over a period
of time. Human capital refers to skills and knowledge which is used by human
beings.
Investment in human capital contributes to growth in the following way.
1.Labour skill of an educated person is more than that of illiterate person
2.A skilled labour generates more income
3. The contribution of an educated person to economic growth is more than that of
an uneducated person.
4.Health is also an important factor for economic growth because an healthy person
can provide better labour supply for a longer period of time.
5.Investment in human capital increases labour productivity and stimulates
innovations and creates ability to absorb new technologies.
Therefore, higher rate of human capital formation contributes more towards
economic growth.

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

Training refers to the act of acquiring skills, knowledge and competency required to
perform a particular job efficiently and effectively. On-the-job training is the most
effective kind of training to a trainee, imparting him the technical skills and know-how at
the actual work site.
The need for on the job training has been highlighted in the following points:
i. On-the-job training is the most common method to train freshers or new
employees.
ii. This type of training helps the trainee to acquire the theoretical and practical
skills simultaneously.
iii. It enables the person to absorb values, norms and standards of an organisation
within the organisation because the employee sees them in everyday action.
iv. As it is done under the supervision of a skilled or experienced worker, the
trainee can learn from the experiences of the supervisor.
v. The expenditures on such training improve the quality of human capital by
enhancing its productivity, efficiency and income earning capacity.

4) How government organisations facilitate the functioning of schools and

hospitals in India?

The government organisations play an important role in the functioning of

schools and hospitals in India. The private institutions in the field of
education and health are guided by the profit motive, the price of these
facilities are high.

In such a situation, government regulates their functioning and make these

facilities available to the general public. The government organisations aim
at protecting the interest of the weaker and underpriviledged section of the
society.

Education and health sectors have vast growth prospects. Private sector alone
cannot be relied for the development of these sectors. Thus, to improve the
health and education facilities the government has set up various
organisations. The following are some of such important organisations and
their functioning.

1. NCERT (National Council of Education Research and Training)– This is

responsible for designing textbooks upto standard 12th which form the base
for school curriculum in India.
2. UGC (University Grants Commission)– It is the prime funding authority
for university education
3. AICTE (All India Council for Technical Education)– It enforces rules
and regulations regarding technical and engineering education in India.
 4. ICMR (India Council for Medical Research)– It enforces rules and
regulations regarding education and research in health sector.
5. National Institute of Health and Family Welfare– This institute is
responsible for the promotion of health and family welfare programmes.

5) Explain the need for acquiring information relating to health and education
expenditure.
It is important to acquire information relating to health and education
expenditure because
1. The information of availability of jobs, salaries and admissions related
information plays an important role in the determination of human
capital. The availability of jobs and admissions related information not
only help the students to opt for the best choice according to their
interest areas but also leads to the effective utilisation of human skills
and knowledge.
2. Some of the important medium of different information related to jobs,
eligibility criteria, posts and salaries are Employment News
(Rozgar Samachar), Employment Exchanges, various TV programs and
government and non-government websites.
3. Expenditures on education enhance human skills and their utilisations,
4. Expenditure on health improves health, efficiency, quality of living and
life expectancy of people.
5. The expenditure incurred on the availability of medical information and
health awareness determines the health of the people.
6. The acceptability and the use of medical information and family welfare
programmes are often obstructed by lack of its publicity and promotion.
For example, few years back, people knew very little about polio and
about its vaccination. But due to the constant efforts by various
government and non-government organisations under the Pulse Polio
Immunisation Program, people are now well aware of polio.
Thus, the expenditure on the spread of information (of education and
health) determines the effectiveness and efficacy of human capital.
6) Discuss the need for promoting women’s education in India.

The weaker and lower status of women in India can be attributed to the
negligence of their education. Women have always been considered as a liability
for a family. The role of women in the economic and social spheres cannot be
neglected in order to achieve overall economic development and growth. With
the rise in the educational levels and modernisation, people have realised the
 importance of female education. The need for female education should be
highlighted in India in order to empower women.
The following are the important points that advocate in favour of promoting women
education:
i. Women education is essential for improving their economic independence and
economic feasibility.
ii. Women education is important in order to raise the social and moral status of
women.
iii. It plays a significant role in maintaining favorable fertility rate.
iv. Health care of women and children can be enhanced with education imparted to
women.
v. An educated women can infuse good moral values and can impart quality education
to her children.
II. Answer the following question in twenty sentences each. (Each question
carries six marks)
1) Discuss the following as a source of human capital formation.
[1] Health Infrastructure [2] Expenditure on migration.
Health Infrastructure
There is a saying ‘Health is Wealth. The wealth of a country can be
increased with the efforts of healthy workforce.
Investment in health sector increases efficiency, and productivity of a
nation’s workforce.
A healthy person can work better with more efficiency than an unhealthy
person.
Good health and medical facilities not only extends life expectancy but also
improves quality and standard of life. Investing in health sector ensures the
perennial supply of healthy workforce.
Some of the common expenditures incurred in the health sector are on
providing better medical facilities, easy availability of life savings drugs,
common vaccination, spread of medical knowledge, provision of proper
sanitation and clean drinking water, etc.
Thus, the expenditure incurred on health is important in building and
maintaining a productive work force.
Expenditure on migration
Migration refers to the movement of people from one place to another for
better jobs.
Migrations contribute to human capital formation
The cost of migration is very high due to the high cost of transportation and
high cost of livelihood in the developed countries.
 But still, people migrate in search of better job opportunities and better
salaries.
Migration of human capital helps the underdeveloped countries to acquire
technical skills, These skills and know-how are transmitted by the migrated
people to their home country that not only add to the economic growth and
development but also enhance the human capital of the home country.

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

An increase in the level of production of goods and services of a country

along with improvement in the quality of life is referred to as economic
development. The role of education in the economic development of a nation
is explained through the following points:

i. Imparts Quality Skills and Knowledge: Education endows people with

quality skills and, thereby, enhances their productivity. Consequently, it
enhances the income earning capacities of and opportunities for people.
Moreover, it also enables human capital to utilise the available physical
capital wisely
ii. Develops Mental Abilities: Education develops mental abilities of people
and helps them to make their choice rationally and intellectually. Education
brings out good citizens by inculcating values in them.
iii. Acceptability of Modernisation: An educated public of a nation has
greater acceptability of modernisation and modern techniques. This not only
helps the economy to grow but also facilitates a primitive economy to break the
shackles of traditions and backwardness.
iv. Removes unequal Income Distribution: Education not only increases the
income earning capacity but also reduces the unequal distribution of income
v. Raises Standard and Quality of Living: Education enhances the income
earning capacity of people and, thereby, it raises the standard of living and
also improves the quality of living.
vi. Increases the Participation Rate: It increases the participation of people
in the process of growth and development.
vii. One Solution for Other Economic Problems: The importance of
education is not only limited to making people educated but also in
facilitating an underdeveloped economy to solve different but interrelated
 macro economic problems like, poverty, income inequality, population,
investments, under utilisation of resources.

3) Trace the relationship between human capital and economic growth.

Human capital and economic growth goes hand in hand. Human capital formation
accelerates the economic growth whereas economic growth in turn facilitates human
capital formation. The interrelationship between the economic growth and the
human capital formation can be explained with the help of the below mentioned
points.

1. Increase in the Productivity of Physical Capital: Physical capital refers to the

stock of produced means of production. It consists of machines, production plants,
tools and equipments. The skilled workers handle the productive assets in such a
manner that these not only enhances their productivity and but also leads to an
efficient utilisation of the physical capital. When the productivity increases, the
pace of growth is automatically accelerated.
2. Innovation of Skills: An educated person is more productive and skillful. He has
the potential to develop new skills and innovate new techniques that can be more
efficient and productive. Greater the number of skilled and trained personnel,
greater will be probabilities of innovations.
3. High Participation Rate and Equality: Human capital endowed with higher
technical skills and innovating power is more productive and efficient. This
increases the participation of more people in the process of economic growth and
development. Higher the participation rate, higher is the degree of social and
economic equality across the country.

Thus, we can conclude that human capital and economic growth goes hand in hand.
Human capital formation accelerates the economic growth whereas economic
growth also facilitates human capital formation.