Try each question on your own first. Use the Show Answer button only after you have selected your option, then read the explanation and revise the related concept from your chapter notes.
1. What does the phrase 'People as Resource' mean?
A. Viewing the population as a burden on the economy
B. Viewing the working population in terms of its productive skills and abilities
C. Viewing only children as a resource
D. Viewing land as more important than people
Answer: B. Viewing the working population in terms of its productive skills and abilities
Explanation: 'People as Resource' refers to studying the population as a productive asset, focusing on the skills and abilities that contribute to economic growth.
2. What is the difference between human capital and human resource?
A. There is no difference at all
B. Human resource refers to the workforce, while human capital refers to the quality of that workforce in terms of skills and education
C. Human capital refers to land, while human resource refers to money
D. Human resource applies only to farmers
Answer: B. Human resource refers to the workforce, while human capital refers to the quality of that workforce in terms of skills and education
Explanation: While human resource refers to the working population, human capital emphasises the value added to that population through education, training and health.
3. Which two main sources contribute to 'human capital formation' according to the chapter?
A. Education and health
B. Land and machinery
C. Roads and railways
D. Banks and stock markets
Answer: A. Education and health
Explanation: Investment in education and healthcare are the two major sources of human capital formation, improving people's productivity and quality of life.
4. Economic activities in a country are usually classified into which three sectors?
A. Rural, urban and semi-urban
B. Primary, secondary and tertiary
C. Government, private and cooperative
D. Organised, unorganised and informal
Answer: B. Primary, secondary and tertiary
Explanation: Economic activities are broadly grouped into primary (agriculture and related activities), secondary (manufacturing), and tertiary (services) sectors.
5. Which of the following belongs to the primary sector of the economy?
A. Agriculture
B. Software development
C. Banking
D. Teaching
Answer: A. Agriculture
Explanation: Agriculture, along with forestry, fishing and mining, is classified under the primary sector as it directly uses natural resources.
6. What is 'disguised unemployment'?
A. When a person has no job at all
B. When more people are employed in a task than are actually needed, so productivity per worker is low
C. When a person works overtime for extra pay
D. When employment is only seasonal
Answer: B. When more people are employed in a task than are actually needed, so productivity per worker is low
Explanation: Disguised unemployment occurs when extra workers are engaged in an activity, such as farming, beyond what is required, without adding to total output.
7. What is 'seasonal unemployment'?
A. Permanent job loss regardless of season
B. Unemployment that occurs during certain months of the year when work is unavailable, common in agriculture
C. Unemployment among only educated workers
D. Unemployment caused by machines replacing workers
Answer: B. Unemployment that occurs during certain months of the year when work is unavailable, common in agriculture
Explanation: Seasonal unemployment happens when people cannot find work during certain parts of the year, particularly in activities like farming that depend on specific seasons.
8. Why is investment in education considered important for economic development?
A. It has no effect on productivity
B. It improves the quality of the workforce and enhances productivity and income
C. It reduces the size of the population
D. It is unrelated to economic growth
Answer: B. It improves the quality of the workforce and enhances productivity and income
Explanation: Education equips individuals with skills and knowledge that improve their productivity, employability and earning potential, contributing to economic growth.
9. What is the purpose of programmes like Mid-Day Meal in schools, as mentioned in the context of human capital?
A. To improve nutrition and encourage children to attend and stay in school
B. To reduce the number of schools
C. To increase school fees
D. To replace teachers with volunteers
Answer: A. To improve nutrition and encourage children to attend and stay in school
Explanation: The Mid-Day Meal programme aims to improve children's nutritional status while also incentivising regular school attendance and reducing dropout rates.
10. Which body in India is responsible for setting up basic health infrastructure in rural areas?
A. Primary Health Centres (PHCs) under the health system
B. The Election Commission
C. The Reserve Bank of India
D. The Ministry of Defence
Answer: A. Primary Health Centres (PHCs) under the health system
Explanation: Primary Health Centres provide basic healthcare services in rural areas, forming an important part of India's health infrastructure and human capital formation.
11. What term describes people who are able and willing to work but cannot find employment?
A. Retired persons
B. Unemployed persons
C. Students
D. Dependents
Answer: B. Unemployed persons
Explanation: A person is considered unemployed if they are willing and capable of working at the prevailing wage rate but cannot find a job.
12. Which of these best describes 'educated unemployment' in India?
A. Illiterate people unable to find work
B. Educated youth, sometimes with degrees, unable to find suitable employment
C. Employers unwilling to hire women
D. A shortage of teachers in schools
Answer: B. Educated youth, sometimes with degrees, unable to find suitable employment
Explanation: Educated unemployment refers to a situation where individuals who have attained a certain level of education still cannot find jobs matching their qualifications.
13. According to the chapter, why is the quality of population considered as important as its quantity?
A. Because a skilled and healthy population contributes more effectively to national output
B. Because quantity has no relation to development
C. Because only rich countries need quality workers
D. Because quality of population cannot be measured
Answer: A. Because a skilled and healthy population contributes more effectively to national output
Explanation: A population's economic contribution depends heavily on its skills, education and health, which is why quality matters alongside sheer numbers.
14. What effect does unemployment have on an economy, according to the chapter?
A. It has no negative effect on the economy
B. It leads to wastage of potentially productive human resources and can slow economic growth
C. It always increases national income
D. It benefits every sector equally
Answer: B. It leads to wastage of potentially productive human resources and can slow economic growth
Explanation: Unemployment represents underutilised human capital, resulting in lost output and income that could otherwise have contributed to the economy.
15. Which sector of the economy has seen a significant rise in employment due to activities like banking, IT and transport?
A. Primary sector
B. Secondary sector
C. Tertiary sector
D. Informal agricultural sector
Answer: C. Tertiary sector
Explanation: The tertiary sector, comprising services like banking, IT, and transport, has grown considerably and now generates significant employment.
16. Why is health considered an essential component of human capital formation?
A. Because it has no bearing on a person's work capacity
B. Because a healthy person can work more effectively and contribute more productively to the economy
C. Because only the elderly need healthcare
D. Because health spending is a waste of resources
Answer: B. Because a healthy person can work more effectively and contribute more productively to the economy
Explanation: Good health enhances a person's efficiency and ability to work, making healthcare investment a crucial part of building human capital.
17. What does 'economically productive population' refer to in demographic terms?
A. People below 15 years of age only
B. People in the age group of 15 to 59 years who form the workforce
C. People above 60 years of age only
D. Only government employees
Answer: B. People in the age group of 15 to 59 years who form the workforce
Explanation: The economically productive population generally consists of people aged 15 to 59, considered capable of contributing to the workforce.
18. Why might migration for employment be undertaken by workers, as discussed in the chapter?
A. To seek better job opportunities and higher income elsewhere
B. Because they dislike their home region for no reason
C. Because it is compulsory by law
D. Because they want to stop working entirely
Answer: A. To seek better job opportunities and higher income elsewhere
Explanation: Workers often migrate from areas with limited employment opportunities to places offering better jobs and higher wages.
19. What role does the state play in creating human capital, as per the chapter?
A. The state plays no role in education or health
B. The state invests in and regulates education and health infrastructure
C. Human capital formation is entirely a private matter with no government involvement
D. The state discourages investment in education
Answer: B. The state invests in and regulates education and health infrastructure
Explanation: Governments play a key role by investing in schools, colleges, hospitals and health centres that contribute to building the nation's human capital.
20. What is the term for the proportion of the population that is literate?
A. Sex ratio
B. Literacy rate
C. Growth rate
D. Dependency ratio
Answer: B. Literacy rate
Explanation: The literacy rate measures the proportion of the population that can read and write, an important indicator of human capital.
21. Which of the following best explains why unemployment leads to a 'wastage' of manpower resources?
A. Unemployed people consume more resources than employed people
B. Potentially productive labour remains idle instead of contributing to the national output
C. Unemployment increases the number of skilled workers
D. Unemployment reduces literacy rate directly
Answer: B. Potentially productive labour remains idle instead of contributing to the national output
Explanation: When willing and able workers cannot find jobs, their potential productivity is wasted, representing a loss to the overall economy.
22. What is meant by 'underemployment'?
A. When workers are employed at a level below their potential or skills, or work fewer hours than they would like
B. When a person has no education at all
C. When workers earn very high wages
D. When a worker is over-employed with excessive workload
Answer: A. When workers are employed at a level below their potential or skills, or work fewer hours than they would like
Explanation: Underemployment occurs when a person's skills, qualifications, or available working time are not fully utilised in their current job.
23. Which of the following is an example of an activity in the secondary sector?
A. Cotton farming
B. Textile manufacturing from raw cotton
C. Retail trading of clothes
D. Teaching in a school
Answer: B. Textile manufacturing from raw cotton
Explanation: The secondary sector includes manufacturing activities such as converting raw cotton into cloth through industrial processes.
24. Why does the chapter argue that investment in people can be as important as investment in physical capital?
A. Because skilled and healthy people can generate new ideas and increase overall productivity
B. Because physical capital is unimportant for production
C. Because human capital cannot be measured
D. Because education has no economic value
Answer: A. Because skilled and healthy people can generate new ideas and increase overall productivity
Explanation: The chapter argues that just as investment in machinery increases production capacity, investing in people through education and health enhances their productive capabilities.
25. What has been one significant effect of the growth of the service sector in India's economy?
A. Increased contribution to national income and generation of new types of jobs
B. Complete elimination of agriculture
C. No effect on employment at all
D. A decrease in overall national income
Answer: A. Increased contribution to national income and generation of new types of jobs
Explanation: The growth of services such as IT, banking, and telecommunications has significantly boosted India's national income and created diverse employment opportunities.
26. What is a key reason why rural areas in India often show higher levels of disguised unemployment?
A. Too many people depend on agriculture, which cannot productively absorb them all
B. There are no farmers in rural areas
C. Rural areas have too many factories
D. Rural unemployment does not exist
Answer: A. Too many people depend on agriculture, which cannot productively absorb them all
Explanation: Since agriculture remains the main occupation in many rural areas, more family members often work on farms than are actually needed, leading to disguised unemployment.
27. How does better health infrastructure contribute to a country's economic development?
A. It improves worker productivity by reducing illness and increasing life expectancy
B. It has no relation to a country's economy
C. It only benefits doctors and hospitals
D. It decreases the working population
Answer: A. It improves worker productivity by reducing illness and increasing life expectancy
Explanation: A healthier population tends to be more productive and can work for longer, contributing positively to overall economic development.
28. Which of these is a distinguishing feature of the primary sector compared to the secondary and tertiary sectors?
A. It directly involves the use of natural resources like land, water and forests
B. It deals only with providing financial services
C. It focuses purely on manufacturing goods
D. It has no connection with the environment
Answer: A. It directly involves the use of natural resources like land, water and forests
Explanation: The primary sector, which includes agriculture, fishing, forestry and mining, is characterised by its direct dependence on natural resources.
29. What long-term benefit does the chapter suggest a country gains from investing in the education of girls?
A. It generally leads to social benefits including better health and education outcomes for future generations
B. It has no measurable benefit
C. It reduces the country's overall human capital
D. It should be avoided to save resources
Answer: A. It generally leads to social benefits including better health and education outcomes for future generations
Explanation: Educating girls tends to have wide-ranging positive effects, including improved family health and better educational outcomes for their children.
30. What is the overall conclusion of the chapter regarding the relationship between population and development?
A. Population is always a burden on development
B. A well-educated, healthy and skilled population is a valuable resource that drives economic development
C. Development has no connection with the quality of population
D. Only physical capital, not people, matters for growth
Answer: B. A well-educated, healthy and skilled population is a valuable resource that drives economic development
Explanation: The chapter concludes that investing in people's education and health transforms population from a mere number into a productive resource essential for national development.
This page contains a chapter-wise objective practice set. Try the questions without checking the answer first, then use the explanation to understand the point you missed. The current page contains 30 questions, so you can practise in smaller sets when you are revising.
Quick revision tip
After the practice set, write down the question numbers you missed and revise only those concepts once more. This makes MCQ practice more useful than repeatedly attempting the same questions without reviewing mistakes.
