The difference between benefit from expenditure on education and cost is an approximate market value of _________
Answers
5.1 INTRODUCTION
Think of one factor that has made a great difference in the evolution of mankind. Perhaps it is man’s capacity to store and transmit knowledge which he has been doing through conversation, through songs and through elaborate lectures. But man soon found out that we need a good deal of training and skill to do things efficiently. We know that the labour skill of an educated person is more than that of an uneducated person and hence the former is able to generate more income than the latter and his contribution to economic growth is, consequently, more. Education is sought not only as it confers higher earning capacity on people but also for its other highly valued benefits: it gives one a better social standing and pride; it enables one to make better choices in life; it provides knowledge to understand the changes taking place in society; it also stimulates innovations. Moreover, the availability of educated labour force facilitates adaptation of new
technologies. Economists have stressed the need for expanding educational opportunities in a nation as it accelerates the development process.
5.2 WHAT IS HUMAN CAPITAL?
Just as a country can turn physical resources like land into physical capital like factories, similarly, it can also turn human resources like students into human capital like engineers and doctors. Societies need sufficient human capital in the first place—in the form of competent people who have themselves been educated and trained as professors and other professionals. In other words, we need good human capital to produce other human capital (say, doctors, engineers…). This means that we need investment in human capital to produce more human capital out of human resources.
Let us understand a little more of what human capital means by posing the following questions :
(i) What are the sources of human capital?
(ii) Is there any relation between human capital and economic growth of a country?
(iii) Is the formation of human capital linked to man’s all-round development or, as it is now called, human development?
(iv) What role can the government play in human capital formation in India
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NCERT Class XI Economics: Chapter 5 – Human Capital Formation in India
by Neepur Garg November 6, 2014 Reading Time: 17min read
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NCERT Class XI Economics: Chapter 5 – Human Capital Formation in India
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National Council of Educational Research and Training (NCERT) Book for Class XI
Subject: Economics
Chapter: Chapter 5 – Human Capital Formation in India
Class XI NCERT Economics Text Book Chapter 5 Human Capital Formation in India is given below.
After studying this chapter, the learners will
understand the concepts of Human Resources, Human Capital Formation and Human Development
have understood the links between investment in human capital, economic growth and human development
have understood the need for government spending on education and health
have learnt about the state of India’s educational attainment.
5.1 INTRODUCTION
Think of one factor that has made a great difference in the evolution of mankind. Perhaps it is man’s capacity to store and transmit knowledge which he has been doing through conversation, through songs and through elaborate lectures. But man soon found out that we need a good deal of training and skill to do things efficiently. We know that the labour skill of an educated person is more than that of an uneducated person and hence the former is able to generate more income than the latter and his contribution to economic growth is, consequently, more. Education is sought not only as it confers higher earning capacity on people but also for its other highly valued benefits: it gives one a better social standing and pride; it enables one to make better choices in life; it provides knowledge to understand the changes taking place in society; it also stimulates innovations. Moreover, the availability of educated labour force facilitates adaptation of new
technologies. Economists have stressed the need for expanding educational opportunities in a nation as it accelerates the development process.
5.2 WHAT IS HUMAN CAPITAL?
Just as a country can turn physical resources like land into physical capital like factories, similarly, it can also turn human resources like students into human capital like engineers and doctors. Societies need sufficient human capital in the first place—in the form of competent people who have themselves been educated and trained as professors and other professionals. In other words, we need good human capital to produce other human capital (say, doctors, engineers…). This means that we need investment in human capital to produce more human capital out of human resources.
Let us understand a little more of what human capital means by posing the following questions :
(i) What are the sources of human capital?
(ii) Is there any relation between human capital and economic growth of a country?
(iii) Is the formation of human capital linked to man’s all-round development or, as it is now called, human development?
(iv) What role can the government play in human capital formation in India?
, the workers may be sent for off-campus training. In