Class 9 (Economics) Chapter 2 (People as Resource)

 

Class 9 (Economics)

Chapter 2 (People as Resource)

Notes

 

1. Introduction

The population of a nation has the potential to serve as an asset rather than a burden.

The concept of "People as resource" pertains to a nation's workforce in terms of their existing productive skills and abilities.

 When the existing human resources are enhanced through education and healthcare, they transform into human capital.

 Human capital holds a superior position compared to other resources such as land and physical capital, as it utilizes and enhances the value of these resources.

 Investments in human capital, particularly through education and healthcare, can yield significant returns in the future. Countries like Japan have heavily invested in their human resources, allowing them to develop despite limited natural resources.

 Human beings engage in various activities, which can be categorized into economic and non-economic endeavors.

  2. Economic Activities:

 Economic activities encompass those work undertaken by individuals for financial gain or to fulfill their needs and desires. These activities span a wide range of occupations, including those of workers, farmers, shopkeepers, manufacturers, doctors, lawyers, taxi drivers, and more. They are also commonly referred to as market activities.

 

3. Non-Economic Activities:

 

Non-economic activities, on the other hand, are those not pursued for monetary profit. They are often referred to as unpaid activities and include practices such as religious rituals, household chores, charitable acts like aiding the needy or disabled, and similar endeavors.

 

 4. Economic Activities Classification:

Economic activities are typically divided into three sectors: the primary sector, the secondary sector, and the tertiary sector.

 In the primary sector, activities such as agriculture, forestry, animal husbandry, fishing, poultry farming, and mining take place. This sector involves the extraction or cultivation of raw materials from natural resources.

 

The secondary sector encompasses manufacturing, including both small-scale and large-scale production, as well as construction activities.

 

The tertiary sector, also known as the service sector, comprises a wide range of services such as transportation, education, banking, insurance, healthcare, tourism, and more.

 

5. Quality of Population:

 

The quality of a population is determined by factors such as literacy rate, life expectancy, and the acquisition of skills by individuals within the country.

 

Education's Role:

 

Education plays a pivotal role in human resource development, contributing significantly to societal growth, enhancing national income, enriching cultural diversity, and improving governance efficiency.

 

Government spending on education as a percentage of GDP has increased over the years, from 0.64% in 1951-52 to 3.98% in 2002-03, with the national goal set at 6% of GDP.

 

Disparities exist in literacy rates between genders and across urban and rural areas, with urban populations typically exhibiting higher literacy rates.

 

Initiatives like the "Sarva Shiksha Abhiyan" aim to provide elementary education to all children below the age of 14.

 

Health:

 

Health is another crucial aspect of human resource development, as the efficiency of workers is greatly influenced by their health status.

 

While there has been notable improvement in the country's health standards, challenges remain, such as addressing infant mortality rates and further enhancing the healthcare infrastructure.

  

6. Unemployment:

 

Unemployment occurs when individuals willing to work at prevailing wage rates are unable to secure employment.

Typically, unemployed individuals are those within the age bracket of 15 to 59 years.

Children below the age of 15 and elderly individuals above 60 are not considered when calculating unemployment rates.

 

Nature of Unemployment in India:

 

Seasonal unemployment arises when individuals are unable to find work during certain months of the year, particularly during off-season periods. This type of unemployment is commonly experienced by agricultural labourers.

 

Disguised unemployment is prevalent in rural areas and is attributed to the overpopulation of the agricultural sector. It occurs when there are more workers engaged in a job than necessary, resulting in surplus labor that is essentially disguisedly unemployed.

 

Consequences of Unemployment:

 

(i) Unemployment results in the inefficient utilization of manpower resources.

(ii) It contributes to an economic burden, with unemployed individuals becoming increasingly dependent on the working population.

(iii) Unemployment can lead to heightened social unrest and tension within society.

 

Important Question answers

 

Question 1: What is meant by 'people as a resource'?

Answer: 'People as a resource' refers to the country's working population in terms of their existing productive skills and abilities.

Question 2: How does human resource differ from other resources like land and physical capital?

Answer: Human resource utilizes other resources like land and physical capital to generate output. Unlike land and physical capital, human resource cannot become productive on its own, making it superior to other resources.

Question 3: What role does education play in human capital formation?

Answer: Education is crucial for human capital formation as it provides individuals with the necessary skills and knowledge to contribute to economic productivity. It enhances individual productivity, contributes to economic growth, and fosters national consciousness.

Question 4: How does health contribute to human capital formation?

Answer: Health plays a vital role in human capital formation by enabling individuals to realize their full potential and productivity. A healthy workforce is essential for economic development, as it leads to higher efficiency and productivity.

Question 5: What impact does health have on an individual's working life?

Answer: Health significantly affects an individual's working life as it directly influences their productivity and efficiency. Healthy individuals are better equipped to perform their job responsibilities compared to unhealthy individuals, resulting in higher output and performance.

Question 6: What are the various activities undertaken in the primary, secondary, and tertiary sectors?

Answer: The primary sector includes activities such as agriculture, forestry, animal husbandry, fishing, poultry farming, and mining. The secondary sector comprises manufacturing and construction activities. The tertiary sector encompasses services like trade, transport, education, banking, healthcare, tourism, and more.

Question 7: What distinguishes economic activities from non-economic activities?

Answer: Economic activities are undertaken for monetary gain or to satisfy wants, while non-economic activities are not pursued for monetary benefit. Economic activities contribute to national income, whereas non-economic activities are often unpaid and performed for personal fulfillment or societal welfare.

Question 8: Why are women often employed in low-paying jobs?

Answer: Women are often employed in low-paying jobs due to gender discrimination, limited access to education and skill development, and societal norms that undervalue their contributions. This results in a lack of opportunities for women to secure higher-paying employment.

Question 9: How would you define unemployment?

Answer: Unemployment refers to a situation where individuals willing and able to work at prevailing wage rates are unable to find employment opportunities. It indicates an underutilization of labor resources within an economy.

Question 10: What distinguishes disguised unemployment from seasonal unemployment?

Answer: Disguised unemployment occurs when more workers are engaged in a job than necessary, leading to inefficiency without affecting total production. Seasonal unemployment arises when individuals can only find employment during certain months of the year due to the seasonal nature of certain industries.

Question 11: Why is educated unemployment a unique challenge in India?

Answer: Educated unemployment is a significant challenge in India due to the rapid growth of the educated workforce, coupled with insufficient job creation in various sectors. The gap between the skills possessed by educated individuals and the skills demanded by the job market exacerbates the issue.

Question 12: In which sector can India create the most employment opportunities?

Answer: India can generate significant employment opportunities in the agricultural sector and its allied industries. Agriculture is labor-intensive, and improvements in agricultural practices, along with value addition and modernization, can create numerous job opportunities.

Question 13: How can the education system mitigate the issue of educated unemployment?

Answer: The education system can address educated unemployment by focusing on skill development, vocational training, and aligning curricula with industry requirements. Emphasizing practical skills and fostering entrepreneurship can empower individuals to create their employment opportunities.

Question 14: Among land, labor, physical capital, and human capital, which is the most valuable resource?

Answer: Human capital is considered the most valuable resource among land, labor, physical capital, and human capital. Unlike other resources, human capital has the ability to utilize and enhance the productivity of land, labor, and physical capital, making it indispensable for economic growth

Question 15: Enumerate the drawbacks of population growth.

Answer:

1. Population increase entails several drawbacks, including:
2. A decline in per capita income.
3. A rise in non-productive forces within the economy.
4. An increase in the number of people below the poverty line.
5. The proliferation of slums in urban areas.
6. A surge in unemployment rates.

Question 16: Highlight the significance of education.

Answer: The significance of education encompasses:

1. Enabling individuals to realize their potential and capabilities for work.
2. Cultivating new aspirations and instilling values essential for personal development and societal growth.
3. Enhancing national income, fostering cultural richness, and bolstering the efficiency of governance.

Question 17: List the disadvantages of unemployment.

Answer: Disadvantages of unemployment include:

1. Squandering of human resources, converting potential contributors to the economy into liabilities.
2. Unemployment fosters a frustrated class within society, leading to feelings of helplessness and despair, thereby contributing to social unrest and tension.
3. Unemployment exacerbates the economic burden by increasing dependence on the working population.

Question 18: Propose three methods to harness population as an asset.

Answer: Three strategies to transform population into an asset entail:

1. Improving literacy rates through education, fostering new aspirations, and enriching cultural values, consequently enhancing national income and governance efficiency.
2. Prioritizing health by enabling individuals to realize their potential, bolstering disease resistance, and promoting self-confidence through improved longevity and healthcare access.
3. Developing skills through vocational and skill-based education, empowering individuals to secure employment and contribute to national income.

Question 19: Detail the initiatives undertaken by the government to enhance literacy conditions in India.

Answer: Government initiatives to improve literacy conditions include:

1. Establishment of Navodaya Vidyalayas in each district, offering vocational streams to equip high school students with practical knowledge and skills.
2. Implementation of Sarva Siksha Abhiyan, aimed at providing elementary education to children aged 6-14 through a collaborative effort between the Central Government, States, local governments, and communities.
3. Introduction of the Mid-day Meal Scheme to enhance school attendance, retention, and nutritional status among children.

Question 20: Explain how Japan emerged as a developed country despite its limited natural resources.

Answer: Japan's development as a developed country stemmed from:

1. Investment in human resources due to limited natural resources, focusing on education and healthcare.
2. Importing necessary natural resources while leveraging the efficiency and technology developed by its educated workforce to make efficient use of land and capital.
3. Prioritizing human capital development, which proved instrumental in Japan's economic growth and technological advancement.

Question 21: Elucidate how investment in human capital yields returns akin to investment in physical capital.

Answer: Investment in human capital, encompassing education, training, and medical care, yields returns by:

1. Increasing individual productivity and incomes through enhanced skills and health, akin to the productivity gains from physical capital investment.
2. Indirectly benefiting society through the spillover effects of a healthier and more educated population, ultimately contributing to economic growth and development.

Question 22: Propose various strategies for the government to alleviate unemployment in India.

Answer: Strategies to combat unemployment in India involve:

1. Increasing investment in basic and consumer goods industries to create more employment opportunities.
2. Promoting the development of cottage and small-scale industries employing labor-intensive techniques.
3. Reforming the educational system to emphasize vocational education and aligning curricula with industry demands.
4. Implementing population control measures through family planning and welfare schemes.
5. Modernizing agriculture and utilizing wastelands to create agricultural employment.
6. Expanding rural works programs to provide employment opportunities in rural areas.
7. Enhancing the infrastructure to stimulate economic growth and job creation.
8. Providing subsidies and incentives to the private sector to boost employment generation.
9. Encouraging self-employment among young entrepreneurs through training and financial assistance.

Question 23: Describe the different types of unemployment prevalent in India.

Answer: Types of unemployment in India include:

1. Disguised unemployment, where individuals appear employed but contribute minimally to productive activities, commonly found in agriculture among family members.
2. Seasonal unemployment, occurring when individuals cannot find jobs during certain months, particularly prevalent in agriculture during off-seasons.
3. Educated unemployment, a phenomenon observed in urban areas, where individuals with higher education degrees struggle to secure suitable employment, leading to underutilization of educated workforce resources.