Chapter 2

People As Resource

Q1. What do you understand by ‘people as a resource’?

Ans: ‘People as Resource’ is a way of referring to a country’s working people in terms of their existing productive
skills and abilities. Human resource is an asset for the economy rather than a liability. Population becomes human
capital when there is investment made in the form of education, training and medical care. In fact, human capital is
the stock of skill and productive knowledge embodied in them.

Q2. How is human resource different from other resources like land and physical capital?
Ans: Human resource is different in the following ways:
▪ Land and other resources are fixed, limited and specified whereas human resources can be nurtured through
education and health.
▪ Human resources can bring a change in other resources whereas other resources can not change or affect human
resource.
▪ Human resource can make use of land and physical capital whereas land and physical capital can not become
useful on its own.

Q3. What is the role of education in human capital formation?

Ans: Education plays a very important role in human capital formation for the following reasons:
▪ An educated human can be considered an asset for the economy and not a liability.
▪ Education can help an individual make better use of economic opportunities. It helps in enhancing the national
income, cultural richness and increases the efficiency of the Government.
▪ It enhances individual productivity in terms of quality and quantity.
▪ Because being educated can help the economic status of an individual, it also develops the consciousness
towards society.
▪ An educated person is also aware of health and hygiene, and it will ultimately result in better health for the
people of a country.

Q4. What is the role of health in human capital formation?

Ans: The role of health in human capital formation is as follows:
▪ Healthier people have higher productivity because the health of a person helps him to realise his potential and
the ability to fight illness. On the other hand, an unhealthy person becomes a liability for an organisation.
▪ It improves the quality of life. A healthy person is able to do his work in a proper and efficient way.
▪ A healthy person makes greater contribution to society as compared to an unhealthy person.
▪ Good health enables a person to earn more and to be more regular in his work.

Q5. What part does health play in the individual’s working life?
Ans: Health plays a very important role in an individual’s life because as we all know health is wealth and only a
healthy person can work or perform to his full potential. An unhealthy person can not work efficiently. A healthy
person is able to work harder and better, thus, earning more and living a better life. If the body is healthy, only then
one can perform well. So, we can say that health plays a vital role in an individual’s life.

Q6. What are the various activities are undertaken in the primary sector, secondary sector and tertiary sector?
Ans: The various activities have been classified into three main sectors i.e., primary, secondary and tertiary are:
▪ Primary Sector: The primary sector includes activities involving the extraction and production of natural
resources. This sector’s activities include agriculture, forestry, animal husbandry, fishing, poultry farming, mining,
and quarrying.
▪ Secondary Sector: Manufacturing is referred to as a secondary activity. Natural resources are properly modified
in the secondary activity. Light manufacturing, food processing, oil refining, and energy production are examples
of the secondary sectors.
▪ Tertiary Sector: Tertiary activities are economic activities that support both primary and secondary activities.
Trade, transport, communication, banking, education, tourism, insurance, etc., are examples of tertiary activities.
Q7. What is the difference between economic activities and non-economic activities?
Ans:
Economic Activities Non-economic Activities
1. Those activities which are done to earn some 1. These activities are performed to discharge social
money are called economic activities. obligation or for physical fitness or for recreation.
2. It leads to increase in the personal income of an 2. It do not increase the personal income of an
individual individual.
3. It Contribute to the flow of goods and services in 3. It does not contribute to the flow of goods and
the economy. services in the economy.
4. These add value to the national income. 4. These do not add any value to the national income.
5. Economic activities have two parts- market 5. Non economic activities do not have such parts.
activities and non-market activities.
6. Trading, production, distribution, consumption are 6. People visiting places of worship, providing relief to
all examples of economic activities. the victims of flood and earthquake, engaging in
sports activities, gardening, listening to radio or
watching television are all examples of non-
economic activities.

Q8. Why are women employed in low paid work?

Ans: Women are employed in low paid work due to the following reasons:
▪ There is a division of labour between men and women due to the historical and cultural reasons.
▪ Among women, the literacy rate and skill formation are low.
▪ The legal protection of women employees is meager.
▪ Most women find jobs in fields, where there is no job security.
▪ They are employed in sectors which do not provide them with proper maternity leaves, childcare benefits and
other provisions and are also responsible for managing the household work. Hence, they are paid less than men.

Q9. How will you explain the term unemployment?

Ans: Unemployment is a situation when a person is not involved in any gainful occupation. It also exists when a
person is able and willing to work, but cannot find jobs It creates a feeling of despair among the educated youth. It
has a negative impact on the overall economic growth of a country.

Q10. What is the difference between disguised unemployment and seasonal unemployment?
Ans: Disguised Unemployment: In case of disguised unemployment, people appear to be employed but they are not
actually employed. Sometimes, in agricultural families, eight people are working on a farm, whereas only four people
are needed to do that work. Thus, four persons are surplus and they are not needed on the farm. They also do not
help to increase the production. If these four extra persons are removed from the farm, the production from the
farm will not decrease. Therefore, these four persons appear to be employed but are actually disguisedly
unemployed.
Seasonal Unemployment: Seasonal unemployment happens when people are not able to find jobs during some
months of the year. People dependent upon agriculture usually face such problems. There are certain busy seasons
when sowing, harvesting, weeding and threshing are done. When the plants are growing, there is not much work.
During this period, they remain unemployed and are said to be seasonally unemployed.

Q11. Why is educated unemployment, a peculiar problem of India?

Ans: Educated unemployment is a peculiar problem of India due to the following reasons:
▪ There is unemployment in the technically qualified population, while there is a scarcity of technical skills required
for the economic growth of a country.
▪ According to a study, unemployment among graduates and post graduates has increased faster than the
matriculates.
▪ In a paradoxical manpower situation, there is surplus manpower in certain categories while there is shortage of
manpower in others.
▪ Not being able to find job for long periods creates a feeling of depression among the youth.

Q12. In which field do you think India can build the maximum employment opportunity?
Ans: There are three types of activities into which the employment sector is divided: the primary sector, secondary
sector and tertiary sector. The largest part of India’s population is dependent on agriculture for their livelihood, yet
there is a massive scope of disguised unemployment in the agricultural sector. Hence the manufacturing sector, a
secondary activity, is the one where the maximum part of the population can be given employment due to the
increase in the number of industries.

Q13. Can you suggest some measures in the education system to mitigate the problem of the educated unemployed?
Ans: Following are some of the measures that can be undertaken to mitigate the problem of educated
unemployment:
▪ Educational institutions should focus on imparting job-oriented education.
▪ The structure of education should be such that it successfully caters to the employment market.
▪ Vocational and professional education should be promoted to introduce the future prospects of various career
opportunities to the youth.
▪ The students should be provided educational counselling to help them identify their areas of interest and
persuade them to pursue their career in the same.

Q14. Which capital would you consider the best—land, labour, physical capital and human capital? Why?
Ans: Among land, labour, physical capital and human capital, human capital is the best because it can make use of
land, labour and physical capital. Land and capital cannot become useful on their own.
There are countries like Japan that have invested in human resources as they did not have any natural resources.
These countries are developed and rich countries. They import the natural resource needed in their country. They
have invested in people especially in the field of education and health. These people have made efficient use of other
resources like land and capital. Efficiency and technology evolved by people have made these countries rich and
developed.

Q15. What is the main difference between ‘Human Capital’ and ‘Human Capital Formation’?
Ans: 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.

Q16. What are the objectives of the 12th Five Year Plan in the field of education?
Ans: 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.

Q17. What are the measures taken by the government to improve literacy conditions in India?
Ans: Following are 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.

Q18. What different the strategies should be made by the government to solve the unemployment in India.
Ans: 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.