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CLASS – 9 SUBJECT – ECONOMICS TERM - I
BAL BHARATI PUBLIC SCHOOL, PITAMPURA, DELHI – 110034
People as Resource
Economic Activities: The activities which result in the production of goods and services and value to the national income are called economic activities. Disguised Unemployment: It happens when the number of persons employed in a task is more than what is required ; If these extra persons are removed, there is no adverse effect on the output. Educated Employment: It occurs when people with formal education, upto some minimum standard ( generally upto secondary school) , fail to find a productive job. Gross National Product or National Income: Refers to the sum total of the money value of all final goods and services produced in an economy during a year. Market Activity: That part of the activity which produces such goods or services that are sold and purchased in the market, and the provider of the service gets paid for it. Non-market Activity: The performer of this type of economic activity produces primarily for self – consumption. Own-Account Production: The produced asset is not sold in the market; it is produced for self consumption, e.g. ,a house. Primary Sector :It consists of all those activities which are based on natural resources, such as agriculture, forestry, animal husbandry, fisheries, poultry farming, and mining. Seasonal Unemployment: It happens when people are not able to find jobs during some months of the year. Secondary Sector: It consists of all those activities which transform the shape of nature based raw materials into some useful objects, e.g. quarrying and manufacturing. Tertiary Sector: It consists of all those activities which are concerned with the distribution of goods and services so that these reach the final consumers, e.g. trade, transport, communication, tourism, health and insurance. Unemployment: A situation in which a person is willing to work at current wage rate, but doesn’t get a job. Vicious Cycle: One bad event results in another negative event, which in turn perpetuates the first event and so on; it becomes difficult to identify which is the cause and which is the effect of the cycle. Virtuous Cycle: One good event leading to another; this, in turn, further promotes the first positive event, which, in turn, once again promotes the second positive event and so on. Q1 What is human capital formation? How is it different from Physical Capital formation? Human capital formation refers to addition to the stock of human capital in the country. This addition takes the form of investment in education, training and health care. Human capital formation is both similar to and different from physical capital formation. => Human capital formation adds to the productive capacity and generation of income; physical capital formation also performs the same function. =>Human capital formation adds to the stock of human skills and knowledge. Physical capital formation adds to the stock of tools equipments, machinery and buildings in an economy. Q2 When do “people” become a resource? Human beings without any ability to work are known as simple or ordinary people but given proper education, skills, training and proper health care, the same human beings constitute human capital; it is an indispensable resource which constitutes to a nation’s growth and welfare.
1. Popularly it’s most often construed to mean the life expectancy at birth for a given human population.00. Increase in GNP is also a measure of economic growth of a country.59 years. The percentage increase in the GNP is measured as follows: (1.10. .000 crore and it increases to Rs 1.000 – 1. The quality of population depends upon the => literacy rate =>Health of a person indicated by life expectancy =>Skill formation Q7 Define infant mortality rate (IMR) Infant mortality rate is the death rate of a child under one year of age. technically. We will say that the rate of the growth of the economy in 2001-2002 was 10% over the preceding year. It is a significant concept because An increase in the gross national product means that the output of goods and services in an economy has increased. Society as a whole also gains indirect ways from educated population. Q12 ‘ Population is an asset for an economy rather that a liability. Availability of more goods and services means that the standard of living and the welfare of the people has improved. Q6 Name the factors on which quality of population depends.’ Comment. Population turns into a productive set as a result of education. life expectancy means the expected time remaining to live. Life expectancy is a statistical measure of the average length of survival of a living thing. yield a return in the form of higher incomes and higher productivity.Q3 What do you understand by “people as a resource”? The term People as a resource refers to population as asset for the economy. Q11 What is the significance of the concept of Gross National Product? Gross National Product measures the output of goods and services produced in an economy during a given year.10. Q8 Which age group constitutes the work force population? The workforce population includes people from 15 . However. Educated people earn higher incomes on account of higher productivity which aids to the growth of the economy. Q4 What is the role of education in human capital formation? Education plays an important role in human capital formation. Q10 Is there any difference b/w unemployment in rural and urban areas? Yes the nature of the unemployed differs in rural and urban area. The advantage of a more educated population spreads to those who are not directly educated.000 ) X 100 = 10% 1. which is the same as the expected age at death. training. Urban areas have mostly educated unemployment. medical care.00.000 GNP has increased by 10%. It is often calculated separately for differing gender and geographic location.00.000 crores in the year 2001-2002. and it can be calculated for any age. It is a way of referring to a country’s working people in terms of their exciting productive skills and abilities. Therefore every country seeks to improve the size of GNP. Q9 Define life expectancy. More goods and services are now available in the economy. Q5 Does investment in human capital yield any return? Yes investment human capital through education. Suppose the GNP of an economy in the year 2000-2001 was Rs. In case of rural areas there is seasonal and disguised unemployment.
driving etc. Hence.Population . It is in this sense that the stock of knowledge and skills that constitutes the human resource is a valuable asset. b) Secondary activities. Q14 Differentiate between different types of economic activities with the help of examples. A healthy person is able to devote more time to his work. transformation of wheat into flour is a secondary activity.these adults become parents and the same cycle sets off again.g. investment in education brings returns in future. forestry. has been seen as a liability which slows the rate of the economic growth. low income and poverty perpetuate the vicious cycle. A person with more knowledge and skills is generally more productive.children grow up as educated and healthy adults…………. primary sector is the dominant sector of the economy. Primary activities include those activities which are related to the natural resources like cultivation of land. more resources like food . clothing etc would be required for their survival. These are the activities which are concerned with the transformation of natural resources into other goods. Human beings make a demand on the nation’s resources for their survival. It is relatively a new phenomenon. It includes all the activities which produce different type of services needed by the people in the economy. b) A country’s resources are better utilized. Education provides better knowledge and skills. Let us see how this happens: Educated and healthy parents…………provide good education to their children . c) Tertiary activities. It occurred in the late 1960s. provide adequate nutrition and healthcare to their children. E. population was being treated as a liability. this view for population was not correct. They are more efficient and productive. Conversely.g. This view of population was based on the view that population represented the stock of the human beings. a) Green revolution. Q16 What is the role of education in human capital formation? Expenditure on the education of a child can be seen as an investment. It was primarily brought out by the application of the human mind and knowledge in cultivation.e. energy and stamina. Low productivity . Like any other investment. Q17 Examine the role of health in human capital formation. E. Different type of economic activities can be classified into: a) Primary activities.. the uneducated and sick parents are trapped in vicious cycle of underdevelopment. With economic growth the relative shares of secondary and tertiary sectors increases whereas that of the primary sector falls. . Q15 Give two examples of how the human capital has brought phenomenal changes in the Indian economy. human capital. More important thing is that it supplies the most important factor resource i. However. It brought about massive increase in the crop production. poultry etc. As a result: a) An educated person has higher income because his services command a higher price. Q13 What do you understand by the virtuous cycle of human development? By virtuous cycle of human development we mean that human development causes more human development. b) Information Technology Revolution. banking. He has more strength. Education enhances the cultural richness of a country and the efficiency of governance. They neither have the means or the knowledge to provide education or healthcare to their children. for long. In an undeveloped economy. teaching. Enjoy higher incomes and better standard of living…………. As a result the output and the overall GNP of a nation also increase. It has totally changed the way the information is generated and distributed. It is the human capital that organizes the production activities and uses other factor resources. It has been brought out by the application of human skills and knowledge. It was thought that larger the population .
In agriculture it is difficult to identify who is employed and who is unemployed. two other members of his family join him and share his work. Therefore any expenditure on healthcare may be regarded as the investment made in human capital formation. It may be a low productivity. It may involve much hard work without sufficient remuneration. The total output remains as before i. He would be recorded as employed and not as unemployed. much of education is irrelevant. Unemployment rate in India is low as compared to other countries. Such women have to take up low paid jobs generally in unorganized sectors of the economy. in general a large number of women are illiterate. Q21 Distinguish between disguised unemployment and seasonal unemployment. he accepts whatever job comes his way. Soon. There is no discrimination between men and women. b) Quality improvement c) Vocationalisation of education d) Promotion of distant education e) Convergence between formal and non – formal system of education f) Adoption of state specific curriculum Q20 ‘Unemployment rate in India is low. India is experiencing this problem mainly because of the following reasons: Much of the education is of low-quality. Seasonal unemployment refers to a situation where a large number of people are unable to find a job during some months of the year. knowledge and training are paid higher. harvesting. The rate at which the white collar jobs are created in India is much less than the rate at which the population and education is increasing.g. This is because of the following reasons: a) A poor cannot afford to sit unemployed for a long period of time. low paid job. He has to find work for his subsistence. All those with higher skill. he is more efficient and productive. weeding and threshing. A worker’s remuneration in a work depends upon the level of skill and knowledge involved. However. It is called seasonal unemployment. Q19 Outline the strategies of the Tenth Five Year Plan to promote education. They do not possess any skills or training. one farmer cultivates the land and manages to produce 5000 kg of wheat. These two persons will be called as disguisedly unemployed. They work as extras on land. it means that these two additional labourers are not making any contribution to the total output. Agricultural labourer finds himself as unemployed during this period. although all persons will be reported as employed. Therefore. Disguised unemployment is a situation where the number of people employed in a job is more than what is optimally required. agriculture is a seasonal activity. There is an increased demand for labour at the time of sowing. Therefore. b) A major part of our labour force is engaged into agriculture. The reality is that a large portion of the agricultural labour force is disguisedly unemployed.Hence.e. Also they are subjected to job insecurity.’ Explain. There is rarely any vocation element in it. Q22 Why is educated unemployment a peculiar problem in India? Educated unemployment is a situation where a person has some formal education but fails to find a job for himself. The Tenth Five Year Plan aims to : a) Increase the number of schools and colleges. 5000 kg. suppose on a given farm land. In between there is either no or little demand for labour. In fact India experiences a large rate of underemployment . Do you agree? This is not universally true that women are employed into low paid jobs. Q23 How does unemployment adversely affect an economy? . A poor man would be compelled to accept it.g. Q18 Women are employed in low paid jobs. E. E.
Industrial development in India is very slow due to shortage of capital. contribute to the generation of national product. Q24 What are the causes of unemployment in our economy? Rapid growth of population cuts away our limited and existing and limited resources. c) Under-developed industries. sick industrial units etc. Our educational system is educated. India is a slowly growing economy. . f) Use of capital intensive technology. When in a job. An unemployed person is a liability.Unemployment adversely affects in an economy in the following ways: a) It leads to the wastage of national resources. leaves no surplus and causes unemployment. He does not contribute to the national product. retards capital formation. less investment and almost no capital formation. Over 60% of the Indian population is dependent on agriculture for their livelihood. power shortage. b) Overdependence on agriculture. size of our families. their potential contribution to the economy’s growth remains zero. Little savings means that only little is available for investment. b) An employed person is a human resource and therefore an asset for the economy. To earn huge profit and to save their industries from labour unrest. more persons are dependent on others. d) Defective educational system. This slow economic growth is neutralized by our rapid growth of population. shortage of raw materials. More of the income gets consumed and only a little is saved. investment and capital formation. As a result. But when unemployed. Our economy is characterized by low savings due to low incomes and poverty. Rather puts a pressure on the natural resources for his survival. Human beings represent a national resource. we have a large number of educated unemployed. c) More the unemployed persons in an economy. outdated machinery. Seasonal character of agriculture and disguised unemployment in agriculture are the causes of unemployment in our country. a) Slow rate of economic growth. job opportunities are very limited in industrial sector. e) Less savings. our industries are switching over to capital intensive technology. It is not job-oriented. essential inputs. Hence. frequent strikes.
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