OAV Khandahata Economics Revision Series

By: Parthasarathi Panda

PGT -ECONOMICS
Economics Chapter 2 Important Questions -People as Resource
1. What do you understand by ‘people as a resource’?
Ans: ‘People as a resource’ means viewing individuals as valuable assets because of their skills,
knowledge, and health. It highlights that investing in people’s education and health helps them work
better and contribute more to the economy. For example, educated and healthy people can do their
jobs more effectively, which benefits the economy. By improving people’s abilities and well-being,
they can help the economy grow and become more efficient.

2. How is human resource different from resources like land and physical capital?
Ans: Human resources refer to people and their skills, while land and physical capital are different
types of resources. Land includes natural resources like minerals, and physical capital includes tools,
machines, and buildings. Human resources are unique because they bring creativity and effort, which
help in using land and physical capital effectively. While land and physical capital are important for
production, people’s abilities determine how well these resources are used.

3. In which year did India have its highest literacy rates?

Ans: India’s highest literacy rate was recorded in the 2011 Census. At this time, about 74% of people
could read and write. This increase showed progress in education and access to learning resources.
The higher literacy rate meant that more people, including both adults and children, had better
chances for education and opportunities, reflecting improvements in the country’s education system.

4. What is the difference between human resource and human capital formation?
Ans: Human resources refers to people available for work and their skills. Human capital formation is
the process of improving these skills through education and training. While human resources are the
people themselves, human capital is the value of their skills and knowledge gained through learning.
Human capital formation helps make people more productive by enhancing their abilities, leading to
better job performance and economic growth.

5. Explain the Infant Mortality Rate.

Ans: The Infant Mortality Rate (IMR) measures how many babies die before their first birthday per
1,000 live births in a year. It shows how well healthcare and living conditions support infants. A high
IMR means there are problems with healthcare and nutrition, while a low IMR indicates better care
and living conditions for babies. Tracking the IMR helps assess the effectiveness of health programs
and identifies areas needing improvement to ensure better survival rates for infants.

6. How do education and health contribute to human capital formation?

Ans: Education and health are key to human capital formation. Education improves skills and
knowledge, making individuals more effective in their jobs. Health ensures people are fit to work and
can perform well. Together, education and health enhance a person’s ability to work and contribute to
the economy. Investing in these areas makes people more productive and supports overall economic
development by providing a skilled and healthy workforce.

7. What role does health play in a person’s work life?

Ans: Health plays an important role in work-life by affecting how well people can perform their jobs.
Good health means having the energy and strength to work effectively and consistently. Healthy
workers are less likely to miss work due to illness and can focus better on their tasks. This leads to
higher productivity and lower healthcare costs, making a person more valuable to their employer and
improving their job satisfaction.

8. What are economic activities?

Ans: Economic activities are actions that involve creating, buying, or selling goods and services.
These activities help generate income and contribute to the economy. Examples include farming,
manufacturing, and retail. By engaging in economic activities, individuals and businesses create jobs,
earn money, and provide necessary goods and services. Economic activities drive growth and
improve living standards by making sure people have access to the things they need.

9. What activities are included in the primary, secondary, and tertiary sectors?
Ans: The activities are included in the primary, secondary, and tertiary sectors are:

 Primary sector: This includes activities that collect or harvest natural resources, like farming,
mining, and fishing.
 Secondary sector: This involves turning raw materials into finished products, such as
manufacturing clothes, electronics, or cars.
 Tertiary sector: This provides services rather than goods, such as healthcare, education, and
transportation.

Each sector plays a role in the economy, with the primary sector providing raw materials, the
secondary sector making products, and the tertiary sector offering services to people.

10. How do economic activities differ from non-economic activities?

Ans: Economic activities involve producing, buying, or selling goods and services that create income
and contribute to the economy. Non-economic activities, such as household chores or volunteering,
do not involve financial transactions and do not directly affect the economy. While non-economic
activities are valuable for personal and community well-being, they are not counted in economic
measures. Economic activities are essential for economic growth, while non-economic activities
benefit people in other ways.

11. Why is the daily housework done by a housewife not counted as an economic activity?
Ans: Daily housework done by a housewife is not counted as an economic activity because it does
not involve buying or selling goods or services in the market. Economic activities are those that
produce goods or services for sale, which generate income. Housework, while important for running a
household, is not traded or sold and does not contribute directly to economic statistics. Although
housework is essential for family life, it is not included in economic accounting.

12. Why are women often employed in lower-paid jobs?

Ans: Women often work in lower-paid jobs due to factors like discrimination, traditional roles, and
fewer advancement opportunities. Jobs held by women, such as those in services or caregiving, are
often undervalued and pay less. Women may also face barriers to higher-paying jobs due to biases
and limited career growth opportunities. Addressing these issues involves promoting equal pay,
improving career opportunities, and challenging stereotypes to ensure women can access well-paid
and rewarding jobs.

13. What does “unemployment” mean?

Ans: Unemployment means that people who are willing and able to work cannot find a job. It is
measured by the unemployment rate, which shows the percentage of people looking for work but
unable to find it. High unemployment indicates a lack of job opportunities and can be a sign of
economic problems. Unemployment can result from various factors, including economic downturns,
changes in industry demand, and skill mismatches between job seekers and available jobs.

14. What are the sources of human capital? Name two.

Ans: The main sources of human capital are education and training. Education helps individuals gain
knowledge and skills needed for various jobs. Training provides specific skills required for particular
roles. Both education and training improve a person’s abilities and make them more valuable in the
workforce. Investing in these areas helps people become more productive and contributes to
economic growth by preparing them for better job opportunities.

15. What is the difference between disguised unemployment and seasonal unemployment?
Ans: Disguised unemployment occurs when more people are working than needed, often in jobs
where productivity is low, such as in agriculture with too many workers on the same land. Seasonal
unemployment happens when people are out of work during certain times of the year due to seasonal
changes, like agricultural workers being unemployed in the off-season. Both types of unemployment
highlight different issues in the job market and require different solutions.

16. Why is educated unemployment a unique issue in India?

Ans: Educated unemployment is a unique issue in India because many people with higher education
degrees struggle to find jobs. This problem happens because the skills learned in education may not
match the needs of the job market. Additionally, there are not enough job opportunities that match the
qualifications of educated individuals. This leads to wasted potential and economic inefficiency, as
educated people cannot find suitable work.

17. What changes in the education system could help address educated unemployment?
Ans: To tackle educated unemployment, the education system could:

 Align what students learn with current job market needs to ensure relevant skills.
 Provide vocational training and practical skills for specific careers.
 Encourage entrepreneurship to help students start their businesses.

18. What does “life expectancy” mean?

Ans: Life expectancy is the average number of years a person is expected to live based on current
death rates. It reflects the overall health and living conditions in a country. Higher life expectancy
means better healthcare and living conditions, while lower life expectancy indicates more health
problems or poorer living conditions. Monitoring life expectancy helps assess the effectiveness of
health policies and improvements in quality of life.

19. Which capital is considered the best: land, labour, physical capital, or human capital?
Why?
Ans: Human capital is often considered the best because it includes people’s skills, knowledge, and
abilities. Unlike land and physical capital, which are fixed, human capital can grow and improve
through education and training. Investing in human capital helps people become more skilled and
adaptable, leading to better job performance and economic development. This makes human capital
highly valuable for overall economic progress.
20. Which of the following is part of the secondary sector?
(a) Poultry farming (b) Manufacturing (c) Transport (d) Quarrying
Ans: (b) Manufacturing

21. What is the goal of the Sarva Shiksha Abhiyan?

(a) To provide elementary education to women
(b) To provide elementary education to the rural poor
(c) To provide elementary education to all children aged 6-14 years
(d) To provide elementary education to the urban poor
Ans: (c) To provide elementary education to all children aged 6-14 years

22. How does the use of modern farming methods affect the environment?
Ans: Modern farming methods often involve using chemical fertilizers, pesticides, and large
machinery. While these methods can increase crop yields, they can also have negative effects on the
environment. Chemicals can contaminate soil and water, harming wildlife and affecting the health of
people who consume the crops. Large machinery can lead to soil erosion and depletion of natural
resources. To reduce these impacts, farmers need to adopt practices that are more sustainable and
environmentally friendly, such as using organic fertilizers, crop rotation, and reducing machinery use.

23. What role do markets play in the story of village Palampur?

Ans: In the story of Palampur, markets play a key role in the local economy. Farmers sell their
produce in local markets, which helps them earn money to buy other goods and services. The
presence of markets helps villagers connect with buyers and suppliers, making it easier to trade
goods. Markets also provide a place for villagers to exchange products and information, contributing
to the economic development of the village. By participating in markets, villagers can access a wider
range of goods and improve their standard of living.

24. How does the availability of electricity impact the village of Palampur?
Ans: Electricity has a significant impact on the village of Palampur. It powers essential services such
as irrigation systems, which help increase agricultural productivity by providing a reliable water
supply. Electricity also supports other activities, like running small-scale businesses and schools.
With access to electricity, villagers can use modern equipment and technology, leading to better living
conditions and more efficient production methods. Overall, electricity helps to improve both the
economic and social aspects of village life.

25. What are some challenges faced by farmers in Palampur due to limited land?
Ans: Farmers in Palampur face several challenges because of limited land. With a small amount of
land, they must carefully manage resources to produce enough crops to support their families.
Limited land can lead to overuse of soil, which reduces its fertility over time. It also means that
farmers have to compete for space, which can lead to fragmented plots and less efficient farming
practices. Additionally, small landholdings can limit the ability to invest in modern farming methods or
machinery, affecting overall productivity and income.

26. How do family-run businesses contribute to the economy of Palampur?

Ans: Family-run businesses in Palampur play an important role in the village economy. These
businesses, such as small shops, dairy farms, and handcrafts, provide essential goods and services
to the local community. They create jobs for family members and contribute to the overall income of
the household. By operating locally, these businesses help keep money within the village and support
local economic activities. They also help in reducing the dependence on external sources for goods
and services, promoting self-reliance within the village.
 People as Resource Class 9 Extra Questions Short Answer Type Questions
By: Parthasarathi Panda
PGT -ECONOMICS
1. What is the main difference between ‘Human Capital’ and ‘Human Capital Formation’?

Answer:Human Capital: Population becomes human capital when there is investment made in the
form of education, training and health care.
Human Capital Formation: When the existing ‘human resource’ or ‘human capital’ is further
developed by becoming more educated and healthy, it is known as human capital formation.

2. List the demerits of increase in population.

Answer:The demerits of population increase are :

 The per capita income drops.
 Non-productive force increases.
 The people below poverty line increases.
 Resources like land, factories or other tools and machinery are divided into more persons so
profit becomes divided.
 Slums come up.
 Unemployment increases.

[Link] is the importance of education.

Answer:The importance of education is as follows :

 It helps a person to realise his potential and the ability to do work.
 It provides new aspiration. It develops values of life. It contributes towards the growth of
society also.
 It enhances the national income, cultural richness and increases the efficiency of governance.

4. List down the disadvantages of unemployment.

Answer:The disadvantages of unemployment are :

 It leads to wastage of manpower resource. People who are an asset for the economy, turn into
liability Inability of educated people who are willing to work to find gainful employment implies a
great waste.
 Unemployment is a social evil. Unemployed people are frustrated class. There is a feeling of
helplessness and despair among the youth. Unemployment creates social unrest and tension.
It leads to oppression and exploitation in the society.
 It tends to increase economic overload. The dependence of the unemployed on the working
population increases.

5. Distinguish between market activities and non-market activities.

Answer:Market Activities: Market activities involve remuneration to anyone who performs, i.e., activity
performed for pay or profit. These include production of goods or services including government
service.
Non-market Activities: Non-market activities are the production for self-consumption. These can be
consumption and processing of primary product and own account production of fixed assets.

6. Suggest any three ways to transform population load into an asset.

Answer:The three ways to transform population load into an asset are :

To improve literacy rate: Education provides new aspiration and develops values of life. Education
helps in enhancing the national income, cultural richness and increases the efficiency of governance.
Health: The health of a person helps him to realise his potential and the ability to fight illness.
Increase in longevity of life in an indicator of good quality of life marked by self-confidence. It involves
the protection of children from infection, ensuring nutrition and along with mother and the child and
child care.
Formation of skills: Providing vocational and skill-based education helps the people to get
employment and therefore, they contribute to the national income later.

7. What is the nature of unemployment in India?

Answer:In India, unemployment is widespread. Unemployment is found both in its rural and urban
areas. There is seasonal and disguised unemployment in its rural areas. People here are dependent
on agriculture. Certain months do not provide much work to the people dependant upon agriculture.
In urban areas, educated unemployment has become a serious problem. Many educated youths are
not able to find jobs. Unemployment among graduates and post-graduates has increased f§ster than
among the matriculates.

8. What measures have been taken by the government to spread education and skills among
boys and girls ?

Answer:There is a provision made for providing universal access, retention and quality in elementary
education with a special emphasis on girls. There is also an establishment of pace setting of schools
like Navodaya Vidyalaya in each district. Vocational streams have been developed to equip large
number of high school students with occupations related to knowledge and skills.

9. What are the objectives of the 12th Five Year Plan in the field of education?
Answer:The 12th plan endeavoured to raise the country’s Gross Enrolment Ratio (GER) in higher
education in the age group of 18 to 23 years to 25.2% by 2017-18 and to reach the target of 30% by
2020-21, which would be broadly in line with world average. The strategy focuses on increasing
access, quality, adoption of state-specific curriculum modification, vocationalisation and networking
on the use of information technology. The plan also focuses on distance education, convergence of
formal, non-formal, distance and IT education institutions.
10. What are the measures taken by the government to improve literacy conditions in India?

Answer:The following the measures have been taken by the government to improve literacy
conditions in India
Opening of Navodaya Vidyalayas: Government has started to establish Navodaya Vidyalayas in each
district. Vocational streams have been developed to equip large number of high school students with
occupations related to knowledge and skills.
Sarva Siksha Abhiyan: It is a significant step towards providing elementary education to all the
children of age group 6-14 years. It is an initiative of the Central Government in partnership with the
States, the local government and the community for achieving the goal of universalisation of
elementary education.
Mid-day Meal Scheme: It is a programme aimed to encourage attendance and retention of children in
schools and improve their nutritional status.

[Link] did Japan emerge as a developed country inspite of its poor natural resource?

Answer:Japan emerged as a developed country inspite of its poor natural resource because :
As they did not have any other resource they invested in the development of human resource.
They import the natural resource needed in their country. They have invested on people, especially in
the field of education and health.
These people have made efficient use of other resources, like land and capital. Efficiency and the
technology evolved by people have made these countries rich and developed.

[Link] are the children of educated parents different from those of uneducated parents?

Answer: The children of educated parents are different from those of uneducated parents in the
following ways
Children of educated parents get better opportunities and support in their education.
Their nutritional values are taken care in a better way by the educated parents in comparison to the
uneducated parents.
The children of educated parents do not lack in hygiene as the educated parents are conscious about
it.

13. Give an account of educational achievements made in India so far.

Answer: Over the past 50 years, there has been a significant growth in the number of universities and
institutions of higher learning in specialized areas.
The plan outlay on education has increased from ₹ 151 crore in the first plan to ₹ 3766.90 crore in
the eleventh plan. The expenditure on education as a percentage of GDP rose from 0.64% in 1951-
52 to 3.0% in 2015-16 (B.E.) and has remained stagnant around 3% from past few years. The literacy
rates have increased from 18% in 1951 to 74% in 2010-11.
 People as Resource - Long Answer Type Questions
By: Parthasarathi Panda
PGT -ECONOMICS

1. How does investment in human capital yield a return just like investment in physical
capital?
Answer:
(i) Investment in human capital (through education, training, medical care) yields a return just like
investment in physical capital. This can be seen directly in the form of higher incomes earned
because of higher productivity of the more educated or the better trained persons, as well as the
higher productivity of healthier people,

(ii) Not only do the more educated and the healthier people gain through higher incomes, society
gains also 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. In
fact, human capital is in one way superior to other resources like land and physical capital. Human
resource can make use of land and capital. Land and capital cannot become useful on its own.

2. What different the strategies should be made by the government to solve the
unemployment in India.
Answer:The strategies made by the government to solve the problem of unemployment in India:
 Heavy Investment in Basic Industries: Investment in heavy and basic industries and consumer
goods industries should be increased. They provide more employment along with the supply of
consumer goods.
 Development of Cottage and Small-scale Industries: They provide more employment by adopting
labour intensive techniques.
 Change in Educational System: More emphasis should be given to vocational education.
 Checking of Population Explosion: Rapidly rising population should be checked by adopting family
planning and welfare schemes.
 Modernisation of Agriculture: Modernisation of agriculture should be done. Waste lands should be
utilised.
 Introduction of Rural Works Programmes: Rural works programmes should be increased.
 Developing Infrastructure of Economy: Infrastructure of the economy should be developed.
 Subsidies to Private Sector: Subsidies and other incentives should be given to private sector.
 Stress on Self-employment: Young entrepreneurs should be encouraged for sell-employment by
giving proper training and financial assistance.

3. What is an economic activity ? What cue various activities undertaken in the primary
sector, secondary sector and tertiary sector ?
Answer:
Economic activities: All the activities which give us some income are called economic activities.
Pulling cycle-rickshaw, cleaning houses, selling vegetables and working in schools, factories, banks,
etc. are economic activities.
Activities undertaken in Primary, Secondary and Tertiary Sectors are :
Primary Sector: Activities concerned with collecting or making available material provided by nature
are included in primary sector like agriculture, poultry farming, mining, fishing, etc.
Secondary Sector: The activities which are associated with transforming raw material or primary
products into commodities useful to man such as manufacturing, etc.
Tertiary Sector: The activities which are essential for running modern factories in a big way are
termed as tertiary sector. Activities like trading, banking, health, education, insurance, etc. are
included in tertiary sector and all there providing services.

4. Question [Link] are the different types of unemployment found in India?

Answer:
The different types of unemployment found in India are :
 Disguised unemployment: In disguised unemployment, people appear to be employed. They
have agricultural plot where they find work. This usually happens among family members
engaged in agricultural activity.
 Seasonal unemployment: Seasonal unemployment happens when people are not able to find
jobs during some months of the year. People dependant upon agriculture usually face such
land of problem. There are certain busy seasons when sowing, harvesting, weeding and
threshing is done. Certain months do not provide much work to the people dependent on
agriculture.
 Educated unemployment: Educated unemployment has become a common phenomenon in
urban areas. Many youths with matriculation, graduation and post-graduation degrees are not
able to find job. A study showed that unemployment of graduate and post-graduate has
increased faster than among matriculates.

5. How does Sarva Siksha Abhiyan help in improving elementary education in India?

Answer:
Sarva Siksha Abhiyan is a significant step towards providing elementary education to all children in
the age group of 6-14 years by 2010. It is a time-bound initiative of the Central Government, in
partnership with the States, the local government and the community for achieving the goal of
universalisation of elementary education.

Along with it, bridge courses and back-to-school camps have been initiated to increase the enrolment
in elementary education. Mid-day meal scheme has been implemented to encourage attendance and
retention of children and improve their nutritional status. It is because of Sarva Siksha Abhiyan that
there has been a significant growth in literacy \ rates in India from 18% in 1951 to 74% in 2010-11.
These policies have added to the literate population of India