Which of the following pairs of a source of human capital formation and its example is correctly matched?
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → Migration — An engineer moves to another country for a higher salary
Technically qualified people such as engineers and doctors migrate to other countries for higher salaries. So this pair is correct.
Option (1) On-the-job training — A young man pays a website to learn the salaries offered in different jobs — Incorrect. Spending to learn the salaries of different jobs is spending on information about the labour market.
Option (2) Information — A firm sends its workers for a training course outside the firm — Incorrect. Sending workers for a course outside the firm is off-campus on-the-job training.
Option (3) Migration — An engineer moves to another country for a higher salary — Correct. The engineer bears the cost of moving because the earnings abroad are higher.
Option (4) Health — A firm makes its new workers learn to run machines under a skilled worker — Incorrect. Learning to run machines under a skilled worker is on-the-job training inside the firm.
NCERT (2026-27): “4.3 Sources of Human Capital … Firms spend on giving on-the-job-training to their workers. This may take different forms: one, the workers may be trained in the firm itself under the supervision of a skilled worker; two, the workers may be sent for off-campus training.” “People migrate in search of jobs that fetch them higher salaries than what they may get in their native places. Unemployment is the reason for the rural-urban migration in India. Technically qualified persons, like engineers and doctors, migrate to other countries because of higher salaries that they may get in such countries.” “People spend to acquire information relating to the labour market and other markets like education and health. For example, people want to know the level of salaries associated with various types of jobs, whether the educational institutions provide the right type of employable skills and at what cost.” |