Chapter 2: People as Resource

Economics • Class 9

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Chapter Analysis

Beginner13 pages • English

Quick Summary

The chapter 'People as Resource' explores the idea of population as a valuable asset when invested in through education, training, and healthcare, transforming it into human capital. It highlights the significant role of human capital in improving productivity and economic activities across the primary, secondary, and tertiary sectors. The chapter also discusses various forms of unemployment such as disguised and seasonal unemployment, and addresses issues related to gender disparity in employment, with a focus on the educated unemployed in India. The story concludes with how a village with no initial job opportunities evolves into a thriving economic center through investment in human capital.

Key Topics

  • Human Capital Formation
  • Role of Education and Health
  • Unemployment and Types
  • Gender Disparity in Employment
  • Economic Activities by Sector
  • Disguised and Seasonal Unemployment
  • Importance of Technological Advancement
  • Impact of Population on Economy

Learning Objectives

  • Understand the concept of people as a resource
  • Identify the factors contributing to human capital formation
  • Differentiate between economic and non-economic activities
  • Analyze the impact of unemployment on the economy
  • Discuss the roles of education and health in economic development
  • Recognize gender disparities and propose solutions to employment inequality

Questions in Chapter

What do you understand by 'people as a resource'?

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How is human resource different from other resources like land and physical capital?

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What is the role of education in human capital formation?

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What is the role of health in human capital formation?

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What part does health play in the individual’s working life?

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What are the various activities undertaken in the primary sector, secondary sector and tertiary sector?

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What is the difference between economic activities and non-economic activities?

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Why are women employed in low paid work?

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How will you explain the term unemployment?

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What is the difference between disguised unemployment and seasonal unemployment?

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Why is educated unemployed, a peculiar problem of India?

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In which field do you think India can build the maximum employment opportunity?

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Can you suggest some measures in the education system to mitigate the problem of the educated unemployed?

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Can you imagine some village which initially had no job opportunities but later came up with many?

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Which capital would you consider the best — land, labour, physical capital and human capital? Why?

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Additional Practice Questions

Explain how investing in human capital can transform an economy.

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Answer: Investing in human capital through education, training, and healthcare increases the skill and productivity of individuals, leading to enhanced economic contributions, innovation, and overall national growth.

Discuss the impact of unemployment on the economy.

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Answer: Unemployment increases economic strain by reducing household income and leading to dependency on working members, thus affecting overall productivity and economic growth. It can turn a potential resource into a liability.

Why is education considered a pivotal factor in human capital formation?

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Answer: Education equips individuals with skills and knowledge that enhance productivity and innovation, thus contributing significantly to economic growth and improved quality of life.

Compare and contrast the economic contributions of men and women.

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Answer: While both contribute significantly, women often work in low-paid and insecure positions due to lower educational opportunities and societal roles, whereas men generally hold more secure and higher-paid jobs.

What measures can be taken to reduce gender disparity in employment?

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Answer: Policies promoting equal educational opportunities, legal protections, maternity benefits, and encouragement of female participation in diverse and higher-paying sectors can help reduce gender disparity.

How does disguised unemployment affect agricultural productivity?

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Answer: Disguised unemployment occurs when more people are employed than necessary, reducing efficiency and productivity per worker without impacting overall output, common in agrarian sectors.

What role does technology play in transforming human capital?

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Answer: Technological advancements drive demand for skilled labor, increase productivity, and create new economic opportunities, thus enhancing the value and contribution of human capital.

What are the primary factors contributing to educated unemployment in urban areas?

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Answer: Mismatched skills, over-saturation of certain fields, and insufficient demand for degrees in the job market lead to increased rates of educated unemployment.

Evaluate the influence of health on a person’s productivity.

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Answer: Good health enhances an individual's productivity by ensuring consistent work performance, reducing absenteeism, and contributing to higher income and economic growth.

How can primary education impact a nation’s economic future?

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Answer: Primary education lays the foundational skills necessary for higher learning, enhances literacy, and prepares a skilled workforce that contributes to sustained economic development.