9 Economics Chapter 2 People As Resource

Chapter Notes and Summary
Human Resource
1. People as resource is a way of referring to a country’s working people, in terms of their existing productive skills and abilities.
2. When existing ‘human resource’ is further developed by becoming more educated and healthy, we call it human capital formation. It adds to productive power of country.
3. Investment in human capital (through education, training, medical care) yields a return just like investment in physical capital.
4. Human capital is in one way superior to other resources like land and physical capital because human resource can make use of land and capital.
5. Land and capital cannot become useful on their own.
6. For many decades in India, a large population has been considered a liability rather than an asset.
7. A large population can be turned into a productive asset by investment in human capital i.e., by spending resources on education and health for all.
8. Educated parents invest in education of their children.
9. They are also conscious of proper nutrition and hygiene.
10. As a result of investment in children, a virtuous cycle is created.
11. A vicious cycle may be created by disadvantaged parents who, themselves being uneducated keep their children in a similarly disadvantaged state.
Economic Activities by Men and Women Various economic activities have been classified into 3 sectors i.e., primary, secondary and tertiary.
1. Primary Sector Primary sector includes agriculture, forestry, animal husbandry, fishing, poultry farming and mining.
2. Secondary Sector Manufacturing and construction are included in secondary sector.
3. Tertiary Sector Trade, transport, communication, banking, education health, tourism services, insurance etc are included in tertiary sector.
Defining Economic Activities Economic activities also called market activities are those activities in which income is got in return for work done.
1. Market Activities These involve remuneration to anyone who performs activity, i.e., activity performed for pay or profit.
These include production of goods and services and also includes government service.
2. Non Market Activities Non market activities are production for self consumption. These can be consumption and processing of primary products and own account production of fixed assets.
Division of Labour Between Men and Women
1. Due to historical and cultural reasons, there is a division of labour between men and women in family.
2. Women generally look after domestic work and men work in fields. women who work in homes are not paid anything, while men who work outside homes earn wages.
3. Women get paid for their work only when they enter labour market.
4. earnings of women are determined on basis of skill and education.
5. Education and skill are major determinants of earning of any individual in market.
6. Women have very less education and low skill formation and are paid lower compared to men.
Quality of Population
1. quality of population depends upon literacy rate,health and skill formation.
2. Health of a person is indicated by life expectancy.
3. quality of population decides growth rate of country.
4. Illiterate and unhealthy population are a liability for country.
1. Advantages
(a) Education contributes towards growth of society. It enhances national income, cultural richness and efficiency of governance; it helps to get jobs and increase income.
(b) Literacy rates have increased from 18% in 1951 to 65%
in 2001.
(c) Literacy among males is nearly 50% higher than females and is about 50% higher in urban areas compared to rural areas.
2. Steps to Spread Education
(a) Sarva Siksha Abhiyan is a significant step towards providing elementary education to all children in age group of 6 to 14 years by 2010.
(b) Midday Meal scheme has been implemented in schools to encourage attendance and retention of children and improve their nutritional status.
(c) 10th Plan aimed to increase enrollment in higher education of 18 to 23 years age group.
(d) 10th plan also focuses on distance education and convergence of formal, non-formal distance and IT education institutions.
1. health of a person helps him to realise his potential and ability to fight illness.
2. An unhealthy person becomes a liability for an organisation. Health is an indispensable basis for realising one’s well being.
3. National Health Policy too, aims at improving accessibility of health care, family welfare and nutritional services especially for weaker and underprivileged sections of society.
Unemployment It is said to exist when people who are willing to work at going wages cannot find jobs.
(a) Seasonal Unemployment Seasonal unemployment happens when people are not able to find jobs during some months of year due to seasonal nature of work.
(b) Disguised Unemployment
¢ In case of disguised unemployment, people appear to be employed but they are not working to their full potential.
¢ A family of 8 persons are working on a farm whereas work requires service of 5 people only. remaining
3 persons are extra though they are working on farm.
They are said to be disguisedly unemployed.
(c) Educated Unemployment In case of urban areas educated unemployment has become a common feature.
The unemployment of graduates and post-graduates has increased faster than among matriculates.
Negative Effects/Impact of Unemployment
1. Unemployment leads to wastage of manpower resource.
2. People who are an asset for country turn into a liability.
3. There is a feeling of helplessness and despair among youth.
4. People do not have enough money to support their family.
5. dependence of unemployed on working population increases.
6. quality of life of an individual as well as society is negatively affected.
7. In conditions of bare subsistence there is a general decline in health status and increased dropouts from school.
8. Unemployment has detrimental impact on overall growth of an economy.
Sectors and Unemployment
1. Agriculture is most labour absorbing sector of economy.
2. In secondary sector small scale manufacturing is most labour absorbing.
3. In tertiary sector various new services are now appearing like biotechnology and IT services (call centres).
4. Some of surplus labour in agriculture has moved to either secondary or tertiary sector.

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