CBSE Class 12 Economics sample paper 2026-27: question 32(A)
From the official CBSE sample question paper for 2026-27, section B, question 32(A), for 4 marks. Try it first; the hints and our step-by-step solution are below.
Q32(A) · 4 marks · Short answerCompetency-basedHuman Capital Formation in India
Refer the following text carefully:
Keha and Mandeep graduated recently. Keha in order to improve her physical fitness, reduce stress and increase overall well-being, enrolls in yoga classes, while Mandeep, invests in internet data, online job portals and counselling services to explore suitable career opportunities.
Identify and explain the sources of human capital formation indicated in the above text.
Source: official sample paper from cbseacademic.nic.in (PDF). See it in the full Sample paper 2026-27.
Hints
Open one hint at a time and try again before the next.
Hint 1
Which source keeps a worker fit to work?
Hint 2
Knowing where the jobs are is also an investment.
Step-by-step solution
Each step shows the marks it earns, as an examiner would award them. Checked by an independent re-solve from the question paper.
- ½ mark
Keha's yoga classes are an expenditure on health.
- 1½ marks
Good physical and mental health raises efficiency, learning ability and long-term work performance, giving a more productive future workforce; so health spending is a source of human capital formation.
- ½ mark
Mandeep's spending on internet data, job portals and career counselling is an expenditure on information (about the job market).
- 1½ marks
Such information helps him find jobs that best match his skills, improving his employability, productivity and earnings, so it too forms human capital.
Answer: Keha: expenditure on health; Mandeep: expenditure on information. Both raise productivity and earning capacity, forming human capital.
Where the marks are
- Health identified and explained (½ + 1½)
- Information identified and explained (½ + 1½)
Revise the chapter
- Chapter: Human Capital Formation in India (notes, formulas, where marks are lost and every past question)
- Topic: Human Capital and Its Sources of Formation
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