Sample MCQs with Explanations
Q1. What is the main objective of Human Capital Formation?
A) To increase population
B) To improve workforce productivity
C) To enhance trade balance
D) To reduce imports
Answer: B) To improve workforce productivity
Explanation: Human capital formation aims to develop skills and knowledge through education and health, leading to higher productivity.
Q2. Expenditure on health and education is considered as:
A) Consumption expenditure
B) Investment in human capital
C) Transfer payment
D) Revenue expenditure
Answer: B) Investment in human capital
Explanation: Spending on education and health improves human resources’ capabilities, which is an investment, not consumption.
Q3. Which of the following is a quantitative measure of health?
A) Literacy rate
B) Infant mortality rate
C) Per capita income
D) Employment rate
Answer: B) Infant mortality rate
Explanation: Infant mortality rate reflects the health status of a population, thus measuring the effectiveness of healthcare.
Q4. Why is education considered an important input in human capital formation?
A) It increases unemployment
B) It reduces productivity
C) It develops skills and efficiency
D) It increases dependency ratio
Answer: C) It develops skills and efficiency
Explanation: Education improves knowledge and skills, enhancing an individual’s employability and productivity.
Q5. Health expenditure by the government is aimed at:
A) Reducing inflation
B) Building human capital
C) Encouraging imports
D) Increasing savings
Answer: B) Building human capital
Explanation: Health spending ensures a more efficient and productive labor force, contributing to national economic development.
Relevant Titles
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CBSE Class 12 Economics MCQs on Health and Human Capital Formation
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NCERT-Based Economics Quiz – Health and Human Capital Formation Class 12
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Class 12 Economics Online Practice Test: Health & Human Capital Formation
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CBSE Board Exam 2025 Preparation – Health and Human Capital Formation MCQs
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Free MCQ Practice Test on Health and Human Capital Formation for Class 12
Introduction Paragraph
Introduction:
Prepare effectively for your upcoming CBSE Class 12 Economics Board Exam 2025 with this comprehensive online MCQ practice test on the topic “Health and Human Capital Formation.” This topic, a crucial part of Part B: Indian Economic Development, focuses on how health and education contribute to the economic growth of a nation. These NCERT-based Class 12 Economics MCQs are carefully designed to strengthen your conceptual understanding and align with the latest CBSE exam pattern.
Through this interactive quiz, students can test their knowledge of how healthcare, education, and skill development serve as key components of human capital formation. Each question includes detailed explanations, enabling better comprehension and board-level readiness. Ideal for self-assessment and exam revision, this practice test ensures complete coverage of textbook concepts while improving accuracy and confidence.
Boost your preparation with these CBSE Class 12 Economics MCQs and get one step closer to securing top marks in your 2025 board examinations.
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