Q1. Explain the concept of “people as resource”.

Answer:

“People as resource” means viewing the population of a country as an asset, not as a liability. When people are educated, healthy and skilled, they contribute to the production of goods and services and help in economic growth.

Q2. How is a human being different from other resources like land and physical capital?

Answer:

Land and physical capital (machines, buildings) are passive resources; they cannot work on their own. Human beings are active resources; they use their intelligence and skills to organise the other resources to produce output.

Q3. Distinguish between people as an asset and people as a liability.

Answer:

People are an asset when they are educated, healthy and skilled and can earn income and contribute to development. They are a liability when they are illiterate, unhealthy and unemployed, and become a burden on the family and the country.

Q4. What is meant by human capital? Give an example.

Answer:

Human capital refers to the stock of skills, knowledge, education and health possessed by people. For example, an educated engineer who uses his technical knowledge in a factory is a part of the human capital of the country.

Q5. How is human capital formed?

Answer:

Human capital is formed when the government and individuals invest in education, health, training and skill development. These investments increase the future productivity and earning capacity of people, just like investment in physical capital increases output later.

Q6. Why is investment in human capital considered more beneficial than investment in physical capital in the long run?

Answer:

Physical capital can wear out over time, but an educated and healthy human being can adapt, innovate and use resources more efficiently. This leads to continuous improvement in productivity and income, so investment in human capital gives higher long-term returns.

Q7. Give a simple example to show that expenditure on education is an investment in human capital.

Answer:

A poor family spends money to educate their child instead of making him work. After completing studies, the child gets a good job and earns a higher income, which improves the family’s standard of living. Thus, the earlier expenditure on education has yielded a profitable return.

Q8. Define the working population according to this chapter.

Answer:

The working population refers to people in the age group of 15 to 59 years. This group is considered economically productive as they are able to work and earn.

Q9. Explain the term ‘labour force’.

Answer:

Labour force includes all people in the working age group who are either employed or actively seeking work. It represents the part of the population that is willing and able to participate in productive activities.

Q10. How does a large population become an asset for a country like India?

Answer:

A large population becomes an asset when it is educated and healthy so that it can supply skilled labour to different sectors of the economy. It increases production, innovation and demand, which together help in faster economic growth.

Q11. Why is it said that “a person may be an asset for one country and a liability for another”?

Answer:

A skilled person who cannot find a job in his own country may migrate and work productively in another country. In the home country, he was unemployed and a burden, but in the new country he becomes an asset and contributes to its production.

Q12. Why do we say that population is a “positive factor” in economic growth when it is educated and healthy?

Answer:

Educated and healthy people can use modern techniques, manage resources efficiently and adapt to changes in technology. This leads to higher productivity, larger output and higher income, making population a positive factor for growth.

Q13. Mention two reasons why some people view high population as a burden for the economy.

Answer:

High population puts pressure on food, housing, education and health facilities. If sufficient jobs are not created, many people remain unemployed or underemployed, which increases poverty and makes population a burden.

Q14. How can the problem of ‘people as liability’ be converted into ‘people as resource’?

Answer:

By investing in education, skill development, health care and creating more employment opportunities. This makes people capable of earning and contributing productively, turning them into a valuable resource for the nation.

Q15. What are economic activities? Give one example.

Answer:

Economic activities are activities that result in the production of goods and services and generate income. For example, a farmer growing crops and selling them in the market is engaged in an economic activity.

Q16. Classify economic activities into three sectors and give a brief example of each.

Answer:

Economic activities are classified into:

• Primary sector – using natural resources directly, e.g., agriculture.
• Secondary sector – manufacturing, e.g., making cloth from cotton.
• Tertiary sector – services, e.g., teaching or banking.

Q17. Distinguish between market and non-market activities with examples.

Answer:

Market activities are performed for pay or profit, like a worker employed in a factory. Non-market activities are done mainly for self-consumption or without payment, like a woman cooking for her family at home.

Q18. Why are non-market activities not counted in the national income of a country?

Answer:

Non-market activities are unpaid and are done for self-use, so no money is exchanged. Since national income measures the value of goods and services produced for the market, unpaid work is not included in it.

Q19. Explain with an example how the work done by women at home is devalued in our economy.

Answer:

A woman may cook, clean, look after children and help in family farming, but she is not paid for this work. Therefore, she is often recorded as a “non-worker” in official data, even though her work is essential for the family’s survival.

Q20. How does the participation of women in economic activities differ in rural and urban areas?

Answer:

In rural areas, women often work in fields, collect fuel and water and do animal rearing besides domestic work. In urban areas, many women work in offices, factories and services, but their overall work participation rate is still lower than men’s.

Q21. What do you understand by the term “gender division of labour”?

Answer:

Gender division of labour refers to the social practice where certain types of work are considered suitable for men and others for women. For example, men are expected to work outside for wages, while women are expected to do household chores at home.

Q22. Why is the wage rate of women generally lower than that of men for the same work?

Answer:

Women often work in the informal sector, lack bargaining power and face discrimination. Traditional attitudes undervalue women’s work, so employers tend to pay them lower wages than men for similar jobs.

Q23. Who are self-employed workers? Give an example from rural areas.

Answer:

Self-employed workers are those who run their own economic activity or business. In rural areas, a small farmer cultivating his own land or a woman running a small tailoring unit at home are examples of self-employed workers.

Q24. Differentiate between regular salaried workers and casual wage labourers.

Answer:

Regular salaried workers have a fixed job with a monthly salary and job security, like teachers in government schools. Casual wage labourers are hired on a daily or seasonal basis, with no job security or fixed salary, like construction workers.

Q25. Why are women in India largely employed in the unorganised sector?

Answer:

Many women have low levels of education and skills and face social restrictions, so they cannot easily access regular, formal jobs. Therefore, they work in unorganised sectors like domestic work, casual labour and small home-based activities where wages and conditions are poor.

Q26. How does education influence the type of economic activity a person undertakes?

Answer:

Education increases a person’s knowledge and skills, making them eligible for specialised and better-paying jobs in the secondary and tertiary sectors. Less educated people are usually restricted to low-paid, unskilled work in the primary or informal sectors.

Q27. Why is it important to recognise and value women’s work in the economy?

Answer:

Recognising women’s work shows their real contribution to family welfare and national production. It helps in demanding fair wages, better working conditions and equal opportunities, which are essential for gender equality and full use of human resources.

Q28. What is meant by “quality of population”?

Answer:

Quality of population refers to the level of education, skills and health of people in a country. A population with high quality is more productive and contributes more effectively to economic development.

Q29. Explain how education acts as a powerful tool for human capital formation.

Answer:

Education develops the knowledge and skills of people, enabling them to use modern technology and work more efficiently. It raises their productivity and earning capacity, which in turn increases national income and helps in overall development.

Q30. What is literacy rate and why is it an important indicator of development?

Answer:

Literacy rate is the percentage of people who can read and write with understanding. It reflects the educational status of the population, and a higher literacy rate usually indicates better job opportunities, higher incomes and better living standards.

Q31. How does health influence the quality of human capital?

Answer:

Healthy people can work regularly with more energy and concentration and are less likely to fall ill. This improves their efficiency and productivity, making them more valuable as part of the country’s human capital.

Q32. Why is government expenditure on health considered an investment in human capital?

Answer:

Government spending on hospitals, vaccination, nutrition programmes and clean drinking water keeps people healthy. Healthy citizens work more and earn more, which increases national income and recovers the cost of such expenditure over time.

Q33. Mention any three problems faced in the education sector in India.

Answer:

Some problems are:

• High dropout rates, especially among girls.
• Shortage of trained teachers and infrastructure.
• Regional and gender disparities in access to education.

Q34. What steps has the government taken to improve elementary education in India?

Answer:

The government has launched programmes like Sarva Shiksha Abhiyan and the Right to Education Act to provide free and compulsory education. It also builds more schools, provides mid-day meals and gives scholarships to encourage children to attend school regularly.

Q35. How does better health care contribute to improving the quality of population?

Answer:

Better health care reduces diseases, infant mortality and malnutrition. As a result, people live longer, can work more effectively and children can attend school regularly, improving the overall quality of human resources.

Q36. Explain the relation between education, health and productivity.

Answer:

Education provides knowledge and skills; health ensures physical and mental fitness. Together, they increase a worker’s productivity, as a healthy educated person can use technology better, work longer and adapt to changes in the workplace.

Q37. Why is it necessary to reduce inequalities in educational opportunities?

Answer:

If only a small section of society gets good education, the potential of a large part of the population remains unused. Reducing inequalities ensures that talent from all regions and groups is developed, increasing overall human capital and social justice.

Q38. What do you understand by “infant mortality rate” and what does a high rate indicate?

Answer:

Infant mortality rate is the number of children dying before the age of one per 1,000 live births. A high infant mortality rate indicates poor health facilities, malnutrition and low quality of life in a country.

Q39. How can a country improve the quality of its human capital in the long run?

Answer:

By continuously investing in good schools, colleges, vocational training centres and health infrastructure. It must also ensure equal access to these facilities for all sections of society so that the entire population becomes educated, healthy and skilled.

Q40. Define unemployment as used in this chapter.

Answer:

Unemployment is a situation in which people who are willing to work, and are able to work at the prevailing wage rate, do not find any work. It leads to wastage of human resources and loss of potential output for the economy.

Q41. What is disguised unemployment? Explain with an example.

Answer:

Disguised unemployment occurs when more people are engaged in a work than actually required. For example, if a small plot of land requires only 3 workers but 6 family members are working on it, then 3 of them are disguisedly unemployed.

Q42. Why is disguised unemployment common in Indian agriculture?

Answer:

In rural areas, many family members depend on small pieces of land for livelihood. Due to lack of alternative jobs, all of them work on the farm even though the land does not need so many workers, leading to disguised unemployment.

Q43. Explain the term seasonal unemployment with one example.

Answer:

Seasonal unemployment occurs when people are employed only during certain seasons or periods of the year. For example, farm labourers get work during sowing and harvesting seasons but remain unemployed during the rest of the year.

Q44. What is educated unemployment? Why is it a matter of serious concern in India?

Answer:

Educated unemployment is when people with school, college or professional degrees do not find suitable jobs. It is serious in India because a huge number of educated youth remain jobless, which wastes their skills and creates frustration and social problems.

Q45. How does unemployment affect the economic development of a country?

Answer:

Unemployment leads to loss of production because willing workers remain idle. It reduces income, increases poverty and lowers demand for goods, which together slow down the overall economic growth of the country.

Q46. What is the difference between open unemployment and disguised unemployment?

Answer:

In open unemployment, people are clearly without work and are openly searching for jobs. In disguised unemployment, people appear to be employed but their contribution to production is zero or negligible, and they can be removed without reducing output.

Q47. Why is unemployment considered both an economic and a social problem?

Answer:

Economically, it causes loss of output, income and increases poverty. Socially, it leads to frustration, loss of self-respect, increase in crime and other social tensions, especially among youth.

Q48. Suggest two measures to reduce unemployment in rural areas.

Answer:

• Promoting non-farm activities like dairy, poultry, small-scale industries and rural services.
• Creating more employment-generating schemes, better irrigation and infrastructure so that agriculture and allied activities can employ more people.

Q49. How can the development of the education and training sector help in solving the problem of unemployment?

Answer:

Education and training give people the skills required by modern industries and services. This increases their chances of getting jobs or starting their own enterprises, thereby reducing both educated and unskilled unemployment.

Q50. Explain how unemployment leads to wastage of human resources.

Answer:

When educated and able-bodied people do not get jobs, their knowledge, time and energy remain unused. This is a direct loss for the individual as well as for the country, because the human capital that could have produced goods and services is simply wasted.