CLASS 9

SUBJECT: SOCIAL STUDIES

ECONOMICS
CHAPTER 2
PEOPLE AS A RESOURCE
NOTES
Note : Read the lesson and refer the notes given below

INTRODUCTION

Economic activities are development and wealth producing activities. It creates economic
and financial gain by producing goods and services and adds value to the national
income.

PEOPLE AS RESOURCES

It is a way of referring to a country’s workforce in terms of existing skills and abilities.

SECTORS UNDER ECONOMIC ACTIVITIES

Primary Sector Secondary Sector Tertiary Sector

Known as agricultural Known as manufacturing

Known as service sector.
sector. sector.

Includes trade, transport,

Considers directly using of Considers manufacturing of
communication, banking,
natural resources. goods.
health, tourism

Includes agriculture,
forestry,fishing, mining,
quarrying etc.

TYPES OF ECONOMIC ACTIVITES

 Market Non-Market
Activities Activities

Consider production of Consider production

goods or services including of goods or services
government service for for self-
remuneration consumption.

QUALITY OF POPULATION

Quality of Population is mainly in education and health of the population. Literate and
healthy populations are asset for a country.

(i) Education

 Education is the process of learning for acquisition of knowledge. It is an

important input for growth of a person.
 Development of a country is basically dependant on literacy rate. When a person is
educated, then a family can be educated. After that, society can be educated and
hence literacy rate of the country can increase.
 An educated person can earn more income compared than an uneducated person
because of their skill. National income of a country can increase.
 Governance efficiency can also be enhanced through learning process.

(ii) Heath

 An unhealthy person is burden for a country. A healthy mind create healthy

environment. For development of a country, healthy environment is compulsory.
 In India, states like Bihar and Uttar Pradesh have few medical colleges. These
states have poor health conditions.
 On the other hand, four states Karnataka, Andhra Pradesh, Tamil Nadu and
Maharashtra have majority in number of medical colleges with 81 medical colleges
out of 181.
 In India, infant mortality rate has come down from 147 in 1951 to 47 inn 2010.
 Crude birth rates have dropped to 22.1 and death rates to 7 in 2010.
 Crude birth rate is the number of living births occurring in a given geographical are
per1,000.

UNEMPLOYMENT

Unemployment is a phenomenon that occurs when a person want to do work but unable
to find work.
  Unemployment is liability to the nation. It leads to wastage of manpower resource.

SEASONAL DISGUISED
UNEMPLOYMENT UNEMPLOYMENT
TYPES
In this ,people are
OF not able to find jobs
It happens when
people appear to be
during some months
employed.
UNEMPLOYMENT of the year.

Generally, For ex: In agriculture sector, the field

agriculture sector requires the service of six people and
faces the problem of nine people are worked in the same
seasonal field. The three extra people comes
unemployment under the category of disguised
unemployment.

Infant Mortality Rate : Infant Mortality Rate is the death of a child who is under one
year of age. It is measured by number of death of children under one year of age per 1000
live births.

Birth Rate: It is the number of babies born for every 1,000 people during a particular
period of time.

Death Rate: It is measured by number of people per 1,000 who die during a particular
period of time.

Gross National Product: It is the estimation of the value of the final goods and services
by the residents of the country in a given time period.

National Income: It is the estimation of the value of the final goods and services
produced by a country in a given time period.

Human Capital: It is the stock of skill and productive knowledge embodied in human
beings.

Human Capital Formation: It includes the process of training, medical care etc.
Education and health are the source for the human capital formation.

MINDMAP
 Agriculture

Primary Quarrying

Poultry Farming

Goods & Services

TYPES OF Secondary
ECONOMIC
ACTIVITES Manufacturing

Trade

Transport

Tertairy

Banking

Market Activities
PEOPLE AS A PARTS OF
RESOURCE ECONOMIC Tourism
ACTIVITIES
Non- Market Activities

Health
QUALITATIVE
ASPECTS OF
POPULATION
Education

Seasonal
TYPES OF
UNEMPLOYMENT
Disguised
 QUESTION/ANSWER

Note: Question-Answers to be done in Economics notebook/Loose Sheets.

1. What do you understand by term ‘People as a Resource’?

OR

Why human resource is considered to be most important resource?

Ans.(a) ‘People as Resource’ is a way of referring to a country’s working people in terms of their
existing productive skills and abilities.

(b) It emphasizes people’s ability to contribute the creation of the Gross National Product (GNP).

(c)It is the human resource which converts national resources and physical capital into useful product.

2. What is human capital formation? Bring out its importance.

Ans. When the existing ‘human resource’ is further developed by becoming more educated and healthy,
we call it human capital formation.

Importance

(i) Investment in human capital (through education, training, medical care)yields return in the form of
higher incomes earned because of higher productivity of more educated or the better trained persons, as
well as the higher productivity of healthier people.

(ii) Society also gains in other indirect ways because the advantages of a more educated or a healthier
population spreads to those also who themselves were not directly educated or given health care.

(iii) Human resource can make use of land and capital. Land and capital can’t become useful on its own.

3. How can large population be transformed into productive asset?

Ans. Large population can be transformed into productive asset by:

 Investment in education including primary, secondary, higher and vocational education.

 Providing proper healthcare and medical facilities.
 Impairing requisite skills and training.

4. Give two examples how human capital has brought change in the Indian economy?

Ans. (i) Green Revolution

It occurred in late 1960s and brought about phenomenal increase in crop production. It was brought out
by the application of human knowledge in form of improved production technologies in cultivation.

(ii) Information Technology Revolution

 It shows the importance of human capital over that of material, plant and machinery.
 It has totally changed the way information is generated and distributed.

5. What is the role of education in human capital formation?

Ans.(i) Investments made on education yields a high return in future in the form of higher earnings.

(ii) Education also provides awareness of proper nutrition and hygiene, better knowledge and skills
which make people more efficient and productive.

(iii) It enhances the national income, cultural richness and increases the efficiency of governance.

6. How does an improved quality of human resource (educated parents) help in creation of
virtuous cycle?

Ans.(i) Educated parents are found to invest more heavily on education of their children because they
have realized the importance of education for themselves.

(ii) They are also conscious of people’s nutrition and hygiene.

(iii)They accordingly look after their children’s need for education and good health. A virtuous cycle is
thus created.

7.How is vicious cycle created by disadvantaged parent?

Ans. It may be created by disadvantaged parents who themselves uneducated and lacking in hygiene
keep their children in a similarly disadvantaged state.

8.Why is educated unemployment, a peculiar problem in India?

Ans. Educated unemployment is the unemployment among the youth with matriculation, graduation and
post graduation degrees are unable to find job. It has become a common phenomena. It is a peculiar
problem because:

(i) On account of expansion of educational institutions i.e. universities, colleges. The universities of
educated persons had substantially increased.

(ii) Employment opportunities were not proportionate with the size of educated labour force.

(iii) Educational system is not job oriented.

(iv) Lack of aptitude and technical qualification for various types of work.

9. List few indicators which determine the quality of population.

Ans. The quality of population depends upon –

(i) Educational levels initiated by literacy rate, gross enrollment ratio, dropout ratio etc.

(ii) Health status depicted by life expectancy, death / birth rate, infant mortality rate etc.

(iii)Training and skills acquired by people of the country.

10. What steps have been taken by the government to promote education?

Ans. (i) Establishment of pace setting schools like Navodaya Vidyalaya in each district.

(ii) Development of vocational streams have been increased to equip large number of high school
students with job related knowledge and skill.
(iii) The primary school systems has been expanded to other 858 lakhs in villages in India.

(iv) ‘Sarva Shiksha Abhiyan’ has been initiated which aims to provide elementary education to all
children in age group 6-14 years.

(v) Bridge courses and back to school camps have been started to increase enrollment in elementary
educations.

(vi) Mid-day meal scheme has been implemented to encourage attendance and retention of children in
school along with improvement of their nutritional status.

11. What is the differences between economic and non-economic activities?

Ans.

Economic Activities Non-Economic Activities

(i) The activities which are under taken to earn (i) The activities performed out of love,
money. sympathy, sentiments etc.
(ii) The activities result in production of goods (ii) These activities don’t add value to national
and services and add value to the national income.
income.
(iii) Example: A worker working in a factory. (iii) Example: Mother cooking food for her
children.

12. Explain the term ‘unemployment’.

Ans. (i) It is said to exist when people who are willing to work at the given wages but are unable find
jobs.

(ii) It is always estimated from the work force population which included people from 15-59 years.

(iii) Unemployment in rural areas is of two types:

 Seasonal Unemployment
 Disguised Unemployment

(iv) Urban area have mostly educated unemployment.

13. How has Japan become rich and developed despite of lacking in natural resource?

Ans. Countries like Japan invested in human resources.They import natural resource needed in their
country.

(a) Japan has invested in people especially in the field of health and education.
(b) These people have made efficient use of other resources like land and capital.
(c) Efficiency and technology involved by people has made it rich and developed.

14. Classify the economic activities on the basis of nature and purpose.

Ans.
On the basis of nature:

(i) Primary Sector : includes activities which involves exploitation of natural resources to produce
goods. Example : farming, fishing, forestry, mining etc.

(ii) Secondary Sector : covers

activities in which natural
products are further changed
ECONOMIC
into other forms through ways of ACTIVITIES
manufacturing. Example:
Manufacturing sugar or gur
using sugarcane as a raw
On the basis of On the basis of
material, cotton cloth from nature purpose
cotton.

(iii) Tertiary Sector : the

Primary Secondary Tertairy Market Non-Market
activities which provide service Activity Activity Activity Activities Activities
facilities. Example:
trade,transport, communication
etc.

On the basis of purpose:

(i) Market Activities: involve remuneration to anyone who performs. These include production of
goods or services for pay or profit.

(ii) Non-market Activities: are the activities for production for self-consumption. These can be
consumption and processing of primary products and own account production of fixed assets.

15. Why are women employed in low paid work?

Ans. (i) Education and skill are the major determinants of the earnings of any individual in the market.

(ii) A majority of Women have meager education and low skill formation.

(iii) Hence, they find work in low paid jobs in the informal sector where there is no job security,
employment is irregular and there are no basic facilities like maternity benefits, childcare and other
social security systems.

16. What role does health play in individual’s working life?

Ans. (i) The health of a person helps him to realize his potential and the ability to fight illness.

(ii) A healthy person has more strength and stamina which improve the efficiency and productivity.

(iii) This in turns pays an individual through salary and opportunity to grow.
17. What is the role of health in human capital formation?

Ans. (i) Investment on health makes a man more efficient and therefore more productive.

(ii) His contribution to the production process tends to rise.

(iii) It adds more to GDP of the nation than an unhealthy person who becomes a liability for his family
or an organization and country.

18. What are the provisions for the 12th Five Year Plan?

Ans. The 12th Five Year Plan focuses on:

(i) Increase in the enrollment of higher education of 18-23 years age group.

(ii) Increase access to education.

(iii) Improved quality of education.

(iv) Adoption of states, specific curriculum.

(v) Vocationalisation of education.

(vi) Use of IT in education.

(vii) Distant Education.

(viii) Convergence of formal, non-formal, distant and It educational institutions.

19. How can Infant Mortality Rate be reduced?

Ans. Reduction of Infant Mortality Rate involves the protection of child from infection ensuring
nutrition along with child and mother care.

20. Why in case of India, statistically the unemployment rate is low?

Ans. The unemployment rate is low in India because:

(i) A large number of people represented with the low income and productivity are counted as
employed.

(ii) They appear to work throughout the year but in terms of their potential and income, it is not adequate
for them.

(iii) Poor people can’t afford to sit idle. They tend to engage in any activity irrespective of its earning
potential.

21. In which field do you think India can build the maximum number of employment
opportunities?

OR

Discuss the employment scenario in primary, secondary and tertiary sectors.

Ans. (i) Agriculture is the most labour absorbing sector of the economy. However, there is no scope of
further employment due to prevalence of disguised unemployment.

(ii) There is no scope in the secondary and teriary sector.

(iii) In secondary sector, small scale manufacturing is most labour absorbing.

(iv) In tertiary sector, various new services like bio-technology, information technology have emerged.
These services can absorb more labour.

22. What is the difference between disguised and seasonal unemployment?

Ans.
DISGUISED UNEMPLOYMENT SEASONAL UNEMPLOYMENT

(i) It is a situation in which number of workers (i) It happens when people are not able to find jobs
engaged in a job is much more than actually during some months of a year.
required to do it.

(ii) In this people appear to be employed if some of (ii) It happens due to the seasonal nature of the
them are withdrawn from the job, the total work.
production does not fall.

(iii) For example: If two people are required to (iii) For example: Agriculture is a seasonal
cultivate a farm measuring one hectare but actually occupation. There are certain busy seasons when
five people are engaged, then three people are sowing, harvesting and threshing is done and some
disguisly unemployed. months people don’t have work to do.

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