Here are important questions and answers from NCERT Class 9 Economics Chapter 2 People As Resource.

1. How do people become human capital?

People become human capital when investment is made to provide them with education, healthcare and training.

2. What is human capital?

Human capital is the stock of skill and productive knowledge that people possess.

3. Why are people referred to as human capital?

People are referred to as human capital because they have the ability to contribute to the creation of gross national product.

4. Is a large population an asset or a liability?

A large population is an asset when we consider their ability to contribute to the gross domestic product. Hence, if the government invests in their education, training and healthcare, their productivity will increase and they become a huge asset. On the other hand, uneducated and unskilled population is a liability because of two reasons. First, they are unable to contribute to the GDP. Second, they need to be provided with food, health and education.

5. What do you mean by human capital formation?

When the available human resource is further developed by making them more educated and healthier, their productivity increases manifold and we call it human capital formation.

6. How does investment in human capital yield the same return as the investment in physical capital?

When the government invests in human capital by providing health, education and training to its people, their productivity increases and they are able to earn higher incomes. Thus, just like investment in physical capital, investment in human capital also increases productivity and earning potential of people.

7. Human capital is superior to other resources like land and capital. Explain.

Educated, skilled and healthy people not only earn higher incomes, but also benefit the society in many ways. The advantages of their education and good health spread to those who were not directly educated or given health care. In fact, human resource can make better use of land and capital. By contrast, land and capital cannot become useful on their own. For these reasons, human capital is superior to land and capital.

8. How did Japan become a developed country despite lacking natural resources?

Japan invested heavily in the education and healthcare of their people. Hence, the Japanese are able to earn higher incomes by applying the knowledge they earned from education. With their higher earnings, they are able to import the resources they need. Hence, the lack of natural resources did not affect the development of their nation.

9. Economic activities can be classified into three sectors. Which are they?

Primary, secondary and tertiary

10. What sort of economic activities come under the primary sector?

Agriculture, forestry, animal husbandry, poultry, fishing, farming, mining and quarrying come under the primary sector.

11. Manufacturing is included in the ………………………….. sector.

Secondary

12. What are included in the tertiary sector?

Trade, transport, communication, banking, education, health, tourism, insurance, catering, services etc. come under the tertiary sector.

13. What are the two parts of economic activities?

Market activities and non-market activities are the two parts of economic activities.

14. What are market activities?

Market activities are those activities that generate profit or involve the payment of remuneration to the person who performs it. Production of goods and services, government jobs etc come under market activities.

15. What are non-market activities?

These are activities that involve the production of goods or services for self consumption.

16. What is the importance of education?

Education enables people to make better use of the opportunities available to them. Education and skills are the major factors that determine the earning potential of a person. Education also enhances the national income, cultural richness and efficiency of governance.

17. Name the government initiative which aims to provide elementary education to all children in the age group of 6-14 years by 2010

Sarva Siksha Abhiyan

18. What are some measures that the government has taken to increase the literate population in the country?

The government has built more primary schools in rural areas to make sure that every child has access to education. Sarva Siksha Abhiyan is another such initiative of the central government. It aims to provide elementary education to all the children in the age group of 6-14 years by 2010. There are also bridge courses and back to school camps to bring more children to schools. In addition, the midday meal scheme is implemented to encourage attendance and retention of children in schools and improve their nutritional status.

19. What is the importance of health in the economic progress of a nation?

Employers want to maximize profit. They do not want to appoint people who fall ill frequently as the absence of an employee due to illness affects the productivity and profit of the organisation. By contrast, healthy people can work to the best of their ability and thus boost the profitability of their company. Thus, health is an indispensable basis for realising one’s potential and well-being. Since healthy people are less likely to fall ill, they boost the economic progress of a nation.

20. What is unemployment?

When people who are willing to work at the going rates cannot find jobs, it is called unemployment,

21. What are the types of unemployment present in rural areas?

Seasonal and disguised unemployment

22. What is seasonal unemployment?

When people are not able to find work during certain months of the year, it is called seasonal unemployment. People dependent on agriculture, for example, face this problem as they can only find work during the sowing and harvesting seaason.

23. What is disguised employment?

When a job is done by more people than is necessary to complete it, it is called disguised employment. This usually happens among family members engaged in agricultural activity. For example, sometimes eight people may work in their plot of land, when just five people can complete the job easily. In this case, the three extra people appear to be employed but they do not increase production. If they are removed, the farm output will not suffer. Hence, they are in disguised unemployment,

24. What kind of unemployment exists in urban areas?

In urban areas, educated unemployment exists. In almost all cities, there are lots of graduates and post graduates who cannot find work. This paradoxical situation occurs because there is a surplus of manpower in certain sectors while in certain other sectors there is a shortage of manpower.