Q.1 Which of the following statements is true regarding the relationship between human capital and productivity?

A) Human capital has no impact on productivity.

B) Only physical capital contributes to productivity.

C) Investment in human capital can enhance productivity.

D) Investment in physical capital reduces productivity.

Answer: C) Investment in human capital can enhance productivity.

Q.2 Match the following:

A) i–a, ii–b, iii–c, iv–d
B) i–b, ii–a, iii–c, iv–d
C) i–b, ii–c, iii–a, iv–d
D) i–c, ii–a, iii–b, iv–d

Answer: B) i–b, ii–a, iii–c, iv–d

Q.3 The Mid-day Meal Scheme mainly aims to:
a) Improve literacy rate
b) Increase attendance and retention of children in schools
c) Train teachers
d) Reduce rural–urban literacy gap

Answer: B) Increase attendance and retention of children in schools

Q.4 What is the primary emphasis of the chapter “People as Resource”?

A) Explaining population growth as a liability

B) Highlighting the negative aspects of a large population

C) Viewing population as an asset for the economy

D) Discussing the challenges of providing education and healthcare

Answer: C) Viewing population as an asset for the economy

Q.5 Countries like __________ became rich not by natural resources but by investing in __________ and __________.
A) Japan, land, capital
B) Japan, education, health
C) India, agriculture, industries
D) China, technology, machines
Answer: B) Japan, education, health

Q.6 Which of the following statements are correct?

1. GER in higher education (18–23 years) was 27% in 2020–21.
2. Navodaya Vidyalayas were established under National Education Policy, 1986.
3. Life expectancy in 2021 was over 67.2 years.
4. Crude birth rate dropped to 12 in 2020.

A) 1, 2, 3 only
B) 1 and 3 only
C) 2 and 4 only
D) 1, 2, 3, 4
Answer: A) 1, 2, 3 only

Q.7 Which type of unemployment is most common in rural areas of India?

A) Educated unemployment
B) Seasonal and disguised unemployment
C) Cyclical unemployment
D) Structural unemployment

Answer: B) Seasonal and disguised unemployment

Q.8 What transforms population into human capital?

A) Investment in physical infrastructure

B) Investment in education, training, and healthcare

C) Government subsidies for agriculture

D) Expansion of industrial production

Answer: B) Investment in education, training, and healthcare

Q.9 Which of the following statements are correct?

• A large population can be turned into an asset through investment in education and health.
• Educated parents usually neglect the education of their children.
• Investment in human resources yields high returns in the future.

Options:
A) 1 and 2 only
B) 1 and 3 only
C) 2 and 3 only
D) All of the above

Answer: B) 1 and 3 only

Q.10 Which scheme covers education from pre-school to Class XII with focus on inclusive and equitable learning?
A) National Education Policy 2020
B) Samagra Shiksha
C) Sarva Shiksha Abhiyan
D) Rashtriya Madhyamik Shiksha Abhiyan
Answer: B) Samagra Shiksha

Q.11 What is one way in which educated parents contribute to the education of their children?

A) They discourage their children from pursuing education.

B) They invest heavily in their children’s education because they understand its importance.

C) They prioritize physical strength over education.

D) They rely on the government to provide education for their children.

Answer: B) They invest heavily in their children’s education because they understand its importance.

Multiple Choice Questions:-

Q.12 What was one key difference between Sakal and Vilas?

A) Sakal’s father was a fisherman, while Vilas’s father was a farmer.

B) Sakal was interested in studies and went to school, while Vilas did not attend school.

C) Vilas was physically stronger and healthier than Sakal.

D) Sakal’s family was wealthier than Vilas’s family.

Answer: B) Sakal was interested in studies and went to school, while Vilas did not attend school.

Q.13 Which scheme was launched to encourage attendance and improve nutritional status of children?
A) Samagra Shiksha
B) Mid-day Meal Scheme
C) Beti Bachao Beti Padhao
D) Skill India Mission
Answer: B) Mid-day Meal Scheme

Q.14 According to the National Education Policy, what is the catalytic action of education in the growth process?

A) It creates more problems and requirements.

B) It increases literacy rates rapidly.

C) It needs to be meticulously planned and executed.

D) It reduces the need for investment in human resources.

Answer: C) It needs to be meticulously planned and executed.

Q.15 Why is literacy rate higher among males in India?

A) Males are naturally more intelligent.

B) Females are not allowed to attend schools.

C) Males have historically had more opportunities for education.

D) Females are not interested in education.

Answer: C) Males have historically had more opportunities for education.

Q.16 How does disguised unemployment manifest in rural areas?

A) There is a shortage of manpower in certain categories.

B) More people are employed than necessary, leading to reduced productivity.

C) Technically qualified individuals cannot find jobs.

D) Unemployment rates are statistically low due to low income and productivity.

Answer: B) More people are employed than necessary, leading to reduced productivity.

Q.17 In the context of the story of the village, what role did innovation play in the economic development of the community?

A) Innovation led to increased unemployment due to job displacement.

B) Innovation resulted in the decline of traditional agricultural practices.

C) Innovation created new opportunities and improved productivity in agriculture.

D) Innovation had no significant impact on the economic development of the community.

Answer: C) Innovation created new opportunities and improved productivity in agriculture.

Q.18 Assertion (A): Health is considered an indispensable basis for realising well-being.
Reason (R): A healthy person can maximise output and contribute better to economic growth.

Options:
A) Both A and R are true, and R is the correct explanation of A.
B) Both A and R are true, but R is not the correct explanation of A.
C) A is true but R is false.
D) A is false but R is true.
Answer: A) Both A and R are true, and R is the correct explanation of A.

Q.19 Population becomes human capital when investment is made in:
A) Roads and buildings
B) Education, training, and medical care
C) Industries and machines
D) Agriculture and irrigation
Answer: B) Education, training, and medical care

Q.20 A vicious cycle in human capital formation is created when:
A) Educated parents invest in their child’s education
B) Poor parents keep their children deprived of education and health care
C) The government provides free education
D) Society invests heavily in health
Answer: B) Poor parents keep their children deprived of education and health care

Q.21 The stock of skill and productive knowledge embodied in people is called:
A) Physical capital
B) Human capital
C) Social capital
D) Natural resource
Answer: B) Human capital

Q.22 Assertion (A): Investment in human capital yields a return like investment in physical capital.
Reason (R): Higher education, better training, and good health improve productivity and incomes.

A) Both A and R are true, and R is the correct explanation of A.
B) Both A and R are true, but R is not the correct explanation of A.
C) A is true but R is false.
D) A is false but R is true.
Answer: (a) Both A and R are true, and R is the correct explanation of A.

Q.23 Assertion (A): A large population is always a burden for the economy.
Reason (R): Most people remain uneducated and unhealthy in large populations.
Options:
A) Both A and R are true, and R is the correct explanation of A.
B) Both A and R are true, but R is not the correct explanation of A.
C) A is false but R is true.
D) Both A and R are false.
Answer: C) A is false but R is true.

Q.24 Which of the following is an example of a virtuous cycle?
A) Uneducated parents keeping their children away from school
B) Educated parents investing in the education and health of their children
C) Children working as unskilled labourers like their parents
D) Parents ignoring nutrition and hygiene

Answer: B) Educated parents investing in the education and health of their children

Q.25 Which of the following is NOT included in the primary sector?
A) Poultry farming
B) Forestry
C) Banking
D) Animal husbandry
Answer: C) Banking

Q.26 Whose income was NOT included in the National Income?
A) Geeta’s income from selling fish
B) Sheela’s work in household chores
C) Buta’s earnings from farming
D) Sakal’s job in a private firm
Answer: B) Sheela’s work in household chores

Q.27 The workforce population in India includes people from:
A) 10–50 years
B) 15–59 years
C) 18–60 years
D) 21–65 years
Answer: B) 15–59 years

Q.28 Sakal’s father cultivates fields and sells produce in the market. His activity belongs to which type?
A) Market activity – Primary sector
B) Market activity – Secondary sector
C) Non-market activity – Primary sector
D) Non-market activity – Tertiary sector
Answer: A) Market activity – Primary sector

Q.29 Activities like trade, transport, education, and health fall under:
A) Primary sector
B) Secondary sector
C) Tertiary sector
D) Informal sector
Answer: C) Tertiary sector

Q.30 Unemployment among matriculates is:
A) Increasing faster than post-graduates
B) Decreasing faster than graduates
C) Increasing slower than graduates and post-graduates
D) Equal to unemployment of graduates
Answer: C) Increasing slower than graduates and post-graduates

Q.31 Assertion (A): Household work done by women is not included in National Income.
Reason (R): Such work is considered non-market activity as it does not involve direct pay or profit.
A) Both A and R are true, and R is the correct explanation of A.
B) Both A and R are true, but R is not the correct explanation of A.
C) A is true but R is false.
D) Both A and R are false.

Answer: A) Both A and R are true, and R is the correct explanation of A.

Q.32 Which state had the highest literacy rate as per 2011 census?
A) Bihar
B) Kerala
C) Tamil Nadu
D) Maharashtra

Answer: B) Kerala

Q.33 The expenditure on education as a percentage of GDP in 2019–20 was:

A) 0.64%
B) 2.8%
C) 3.1%
D) 4.2%
Answer: C) 3.1%

Q.34 GER stands for?

A) Gross Employment Ratio

B) Gross Enumeration Rate

C) Gross Employment Rate

D) Gross Enrolment Ratio

Answer: D) Gross Enrolment Ratio

Q.35 When more people are engaged in work than actually required, it is called:
a) Seasonal unemployment
b) Disguised unemployment
c) Educated unemployment
d) Open unemployment
Answer: B) Disguised unemployment

Q.36 Assertion (A): Educated unemployment is a common problem in urban areas of India.
Reason (R): Many graduates and post-graduates are unable to find jobs suitable to their qualifications.

Options:
a) Both A and R are true, and R is the correct explanation of A.
b) Both A and R are true, but R is not the correct explanation of A.
c) A is true but R is false.
d) A is false but R is true.
Answer: A) Both A and R are true, and R is the correct explanation of A.

Q.37 Consider the following statements:

1. Disguised unemployment is mostly found in the agricultural sector.
2. Educated unemployment has been rising faster among matriculates than among graduates.
3. Increase in unemployment indicates a depressed economy.
4. Poor people often remain idle instead of doing low-paying jobs.

Which of the above are correct?
A) 1, 3 only
B) 1, 2, 4 only
C) 1, 3 only
D) 1, 3 only
Answer: A) 1, 3 only

Q.38 Why is unemployment considered a liability for the economy?
A) It increases economic overload
B) It lowers quality of life
C) It wastes human resources
D) All of the above
Answer: D) All of the above

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