Advertisements
Advertisements
Question
"Expenditure on On-the-job training is an important means of human capital formation in an economy."
Give valid reasons to justify the given statement.
Solution
Yes, Expenditure on 'On the job training' is an important means of human capital formation in the economy.
Reasons:
- Updation of new skills: There are several skills that employees are inexperienced with. Employee training at work enables individuals to improve their skills. Teachers have found the usage of smart boards and mobile devices, for instance, to be extremely helpful during the time of Covid.
- Increase in productivity: The development of new skills aids in improving an employee's productivity or efficiency. They execute a task in comparably less time than before.
- Increase in expertise: Employees become experts at a task when they accomplish it consistently while utilizing new skills. Additionally, it boosts employees' self-confidence.
- Economic growth: The majority of employees gain new skills and contribute to GDP growth, therefore investing in "on the job training" is helpful for economic growth in addition to the business and the employees.
APPEARS IN
RELATED QUESTIONS
What are the two major sources of human capital in a country?
Discuss the following as a source of human capital formation
Health infrastructure
Trace the relationship between human capital and economic growth.
Which one of the following is a major source of human capital formation in the country?
The objective of midday meal scheme is ______.
Preventive medicine includes medical practices that are designed to avoid or avert diseases.
Match and choose the correct combination.
| (i) | Preventive medicine | (A) | Medical intervention during |
| (ii) | Curative medicine | (B) | Vaccination |
| (iii) | Social medicine | (C) | The spread of health literacy |
Which of the following institutes comes under the health sector?
Ms. Ramanpreet has started a new business venture, she intends to spend a huge amount towards ‘on-the-job training’ of her workers before putting them to work. It exhibits the right step in the direction of Human Capital Formation.
Spot which of the following does not directly contribute to the process of human capital formation by Ms. Ramanpreet -
Match the situations given in Column I with their respective implications given in Column II:
| Column I | Column II | ||
| A | Migration | i | Reduced in per capita economic growth |
| B | Low level of academic standards | ii | An imbalance between demand and supply of human resource |
| C | Population- High Growth rate | iii | Brain Drain |
| D | Lack of proper manpower planning | iv | The mismatch between required skill and academic standards |
Read the given case study and answer the questions
Traditional economic theory viewed capital in physical terms only. Economists during the late 1950s based on the aggregate production function found that the standard measures of simple labour and physical capital were incapable of explaining adequately the rapid post-war growth. Speculations on what was missing were diverse. Some argued that the principal explanation lays in the lack of appropriate adjustments for improvement in the quality of physical capital and the embodiment of technical progress in that capital. Others suggested that the most important omission pertains to the organisational advance or a vaguely specified human capital. The residual of unexplained growth was at first ascribed to technology by Solow, but later, the residual was defined to include improvements in the quality of capital can the investment in human beings. Human capital is formed with improvement in skills education. Improved health and education is merit as well as a public good and is associated with a large number of externalities which are often indirect, indivisible and non-quantifiable.
Which of the following gives the definition of public goods?
Read the given case study and answer the questions
Traditional economic theory viewed capital in physical terms only. Economists during the late 1950s based on the aggregate production function found that the standard measures of simple labour and physical capital were incapable of explaining adequately the rapid post-war growth. Speculations on what was missing were diverse. Some argued that the principal explanation lays in the lack of appropriate adjustments for improvement in the quality of physical capital and the embodiment of technical progress in that capital. Others suggested that the most important omission pertains to the organisational advance or a vaguely specified human capital. The residual of unexplained growth was at first ascribed to technology by Solow, but later, the residual was defined to include improvements in the quality of capital can the investment in human beings. Human capital is formed with improvement in skills education. Improved health and education is merit as well as a public good and is associated with a large number of externalities which are often indirect, indivisible and non-quantifiable.
In the context of the above paragraph, the ‘residual’ factor include ______.
The newly emerging jobs are found mostly in the ______ sector.
Which of the following points indicates that economic growth and infrastructure development are related to each other?
Consider the following statements:
Statement 1: Resources or factors of production can be natural, human, capital, and entrepreneurial.
Statement 2: An economy must make a choice of the wants which are important for the economy.
Read the following statements carefully.
Statement 1: On-the-job trainings help to bridge a gap between theoretical concepts and practical experiences.
Statement 2: On-the-job trainings update the employees, with the latest changes in their work field.
In the light of the given statements, choose the correct alternative:
State with valid reason whether the following statement is true or false:
“Higher productivity and production are the outcome of investment in human resources.”
