Overview

‘People as Resource’ is a way of referring to a country’s working people in terms of their existing productive skills and abilities. Like other resources, the population is also considered as a
human resource. When the existing ‘human resource’ is further developed by becoming more educated and healthy, it is called human capital formation. Investment in human capital
(through education, training, and medical care) yields a return just like an investment in physical capital.

Human capital is superior to other resources like land and physical capital. Total productivity adds to the growth of the economy. Investment in human resources
(via education and medical care) can give high rates of return in future. Countries like Japan have invested in human resources.
Economic Activities: refer to those activities
of human which are undertaken for a
monetary gain or to satisfy his/her wants.
The activities of workers, farmers, shopkeepers,
manufacturers, doctors, lawyers, taxi drivers, etc.
fall under this category.

Sectors under economic activities

(i) Primary Sector
It is also known as agriculture sector. This sector
considers directly using of natural resources. This
sector includes agriculture, forestry, animal husbandry,
fishing, poultry farming, mining, and
quarrying.
ii) Secondary Sector
It is also known as manufacturing sector.
This sector considers manufacturing of goods.
(iii) Tertiary sector
This sector provides service. This sector includes trade,
transport, communication, banking, education, heath etc

This is for self consumption

eg - production of goods and

services
There was a division of labour between men and women. Men were paid for their services, but to the contrary, women were not paid for their services. Education plays an important role
for individuals to make better use of economic opportunities. Most women used to work in places where there was no job security. In this sector, employment was characterised by
irregular and low income. Basic facilities were missing, like maternity leave, childcare and other social security systems. However, women with high education and skill formation were
paid highly.

Quality of Population
The quality of the population depends upon the literacy rate and health of a person, indicated by life expectancy and skill formation acquired by the people of the country.
It ultimately decides the growth rate of the country, and a literate and healthy population is an asset

Education
Education contributes to the growth of society, enhances the national income and cultural richness and increases the efficiency of governance. Literacy is needed for citizens to perform their
duties and enjoy their rights properly. Sarva Siksha Abhiyan, which was introduced in the year 2010, provides elementary education to all children in the age group of 6–14 years.
To encourage attendance and retention of children and improve their nutritional status, a mid-day meal scheme was introduced. The 12th plan focused on increasing access, quality,
adoption of state-specific curriculum modification, vocationalisation and networking on the use of information technology, distance education, and convergence of formal, non-formal, distance
and IT education institutions.
Case study, answer to question no 3
Countries with limited natural resources can achieve wealth and development through strategic investments in human capital,
technological innovation, and a diversified economy. These nations often focus on developing strong service sectors,
manufacturing, and high-value industries to compensate for the lack of natural resource wealth.

Japan

Japan, instead of India

ECONOMICS PEOPLE AS RESOURCE
Section B and C of pdf
1. Why do educated parents invest in education?
Educated parents invest in their children's education because they understand its long-
term benefits, both for the child and for society as a whole.

• Understanding the Value of Education:

Educated parents have appreciation for the knowledge, skills, and opportunities
that education provides. They recognize that education is not just about
academic achievement, but also about developing critical thinking, problem-
solving abilities, and social skills.
• Future Opportunities:
They are more likely to see education as an investment in their child's future
career prospects and financial well-being. Education can lead to better job
opportunities, higher earning potential, and increased financial independence.
• Social Mobility:
Educated parents understand that education can be a pathway to social
mobility, allowing their children to improve their socioeconomic status and
access better resources and opportunities.
• Positive Role Modeling:
Educated parents can serve as positive role models, encouraging their children
to pursue their education and instilling a love of learning.
• Creating a Supportive Environment:
They are more likely to create a supportive and stimulating home environment
that fosters learning and academic success.
• Access to Resources:
Educated parents may have better access to resources and information about
educational opportunities, such as tutoring, extracurricular activities, and private
schooling.
• Long-term Benefits:
They are more likely to consider the long-term benefits of education, such as
increased confidence, improved social skills, and a greater capacity for lifelong
learning.
 2. How have people of Japan developed their country?
Japan became a developed country through a combination of factors including a strong
emphasis on education, technological advancement, efficient resource management,
and a dedication to international trade.

• Investment in Human Resources:

Japan prioritized education and healthcare, recognizing the importance of a
skilled and healthy workforce.
• Technological Advancement:
Japan actively adopted and adapted foreign technologies, particularly in the
post-war period, and invested heavily in research and development to create its
own innovative technologies.
• Efficient Resource Management:
Despite limited natural resources, Japan focused on optimizing the use of
available resources through efficient production processes and a strong
emphasis on quality control.
• Government Policies and Cooperation:
The Japanese government played a crucial role in guiding economic
development through strategic planning, industrial policies, and close
collaboration with the private sector.
• Export-Oriented Economy:
Japan focused on developing industries that could compete in the global
market, leading to strong export growth and economic prosperity.
• Strong Work Ethic:
The Japanese culture emphasizes dedication, hard work, and a commitment to
quality, which contributed significantly to the country's economic success.
• International Trade:
Japan actively engaged in international trade, importing necessary resources
and exporting finished goods, contributing to its economic growth and global
influence.
 3. Why is the women's household work not recognized in national income?
Women's household work is generally not included in national income calculations
primarily because it is typically unpaid and not exchanged in the market.
National income accounting focuses on market transactions, and the value of goods
and services exchanged for money.
Household work, while valuable, is often seen as an activity motivated by love and
affection, rather than a commercial transaction.

4. Mention three impacts of Sarva Shiksha Abhiyan on schools?

• Increased Enrollment and Reduced Dropout Rates:

SSA has been instrumental in bringing more children into the school system,
especially girls and children from backward communities. It has also reduced dropout
rates at the primary level by addressing barriers to education through initiatives like
midday meals and scholarships.
• Improved School Infrastructure:
SSA has funded the construction of new classrooms, toilets, and the renovation of
existing school buildings, creating a more encouraging learning environment.
• Enhanced Teacher Quality:
The program has focused on improving teacher training and providing professional
development opportunities, leading to better teaching methods and improved student
engagement.

5. How a healthy employee is essential for overall growth of the organization?

A healthy employee is crucial for an organization's overall growth as it directly
impacts productivity, performance, and financial well-being. Healthy employees are
more engaged, motivated, and efficient, leading to increased output and reduced
costs associated with absenteeism and healthcare.
Furthermore, a healthy workforce builds a positive work environment, attracting and
retaining talent, and ultimately contributing to the organization's success
 6. Write an example of seasonal unemployment?
Seasonal unemployment occurs when individuals lose their jobs during specific
times of the year due to seasonal change in demand.

Festivals:
Temporary employees hired for festivals like Diwali or Christmas may be laid off after
the festive period

Construction:
Construction workers may face unemployment during colder months or when the
construction season is over.
Agriculture:
Farmers may experience seasonal unemployment after the harvest season, as there
is less demand for labor during the off-season.

Section D
1. Analyse the impact of health and education on society?
Health and education are fundamental pillars of society’s well-being and progress.

Impact of Health on Society:

• Increased productivity:
Healthy individuals are more likely to be active and productive members of society,
contributing to the workforce and the economy.
• Reduced burden of disease:
Good health reduces the need for expensive healthcare and allows individuals to
focus on other aspects of life, like education and work.
• Improved quality of life:
Healthier individuals experience a better quality of life, leading to greater happiness
and overall well-being.
• Enhanced human capital:
A healthy population forms a strong foundation for human capital development,
which is crucial for a nation's progress.
Impact of Education on Society:

• Economic growth:
Educated individuals are more likely to find better jobs, increase their earning
potential, and contribute to the economy.
• Poverty reduction:
Education empowers individuals to escape poverty by providing them with the skills
and knowledge needed for better employment opportunities.
• Social mobility:
Education can break down barriers to social mobility, allowing individuals to
improve their social standing regardless of their background.
• Informed decision-making:
Education equips individuals with critical thinking skills and the ability to make
informed decisions about various aspects of life, including health, finances, and
social issues.
• Reduced inequality:
Education can help bridge the gap between different social groups by providing
everyone with access to knowledge and opportunities.
• Stronger communities:
Education can foster a sense of civic engagement, leading to more active and
engaged communities.
• Reduced crime:
Education can contribute to lower crime rates by providing individuals with better
opportunities and fostering a sense of social responsibility.

2. Analyse the impact of government schemes mid-day meal and Sarva

Shiksha Abhiyan?
The Mid-Day Meal Scheme (MDMS) and Sarva Shiksha Abhiyan (SSA) have
demonstrably impacted India's education and health landscape.

Mid-Day Meal Scheme (MDMS) Impact:

• Increased Enrollment and Attendance:

MDMS has incentivized parents to send their children to school, especially those
from disadvantaged backgrounds, leading to higher enrollment rates.
• Reduced Dropout Rates:
The availability of nutritious meals has helped students, especially those from rural
areas, stay in school longer, reducing dropout rates.
• Improved Nutritional Status:
The scheme has contributed to improved nutritional levels among children, leading
to better health outcomes and cognitive development.
• Enhanced Academic Performance:
Some studies suggest that MDMS can positively influence academic performance,
as children are more likely to be attentive and focused in class when they are well-
nourished.

Sarva Shiksha Abhiyan (SSA) Impact:

• Universal Access to Education:

SSA aimed to ensure that all children have access to elementary education,
addressing infrastructure deficiencies and improving the quality of learning.
• Teacher Training and Development:
SSA focused on improving the skills and knowledge of teachers, ensuring they
were equipped to deliver quality education.
• School Improvement Grants:
SSA provided financial support to schools for infrastructure development, including
building classrooms, providing libraries, and improving sanitation facilities.
• Increased Enrollment and Retention:
SSA's efforts have contributed to increased enrollment rates and reduced dropout
rates across the country.
• Focus on Disadvantaged Groups:
SSA has prioritized the education of backward groups, including Scheduled Castes,
Scheduled Tribes, and Other Backward Classes, ensuring they have access to
quality education.
• Improved Learning Outcomes:
SSA has contributed to improved learning outcomes, as more students are able to
access quality education and have access to resources that support their learning.
 3. Unemployment has detrimental (damaging) effects on economy
comment?

Unemployment hurts economic growth because

• Reduced Consumer Spending:

When people lose their jobs, their income decreases, and they have less
money to spend on goods and services. This reduction in consumer spending
can lead to a decline in overall economic activity.
• Lowered Productivity:
Unemployment means valuable labor resources are not being used, leading to
lower overall productivity in the economy. This can hurt economic growth in the
long run.
• Loss of Skills and Experience:
Long-term unemployment can lead to the loss of valuable skills and experience,
as unemployed workers may not be able to maintain their skills or stay current
with industry changes.
• Social Issues:
Unemployment can also lead to a variety of social issues, such as increased
crime rates, homelessness, and health problems

Text Book Questions

1. What do you understand by people as resource?

"People as a Resource" refers to the idea that a nation's population can be viewed as
an asset for economic growth when invested in through education, training, and
healthcare. It emphasizes how a healthy and educated population contributes to a
country's prosperity. It is about recognizing that people's skills, knowledge, and overall
well-being are valuable resources that can lead to economic development.

2. How is human resource different from other resources like land and
physical capital?
Human resources differ from land and physical capital because humans possess the
unique ability to utilize and improve all other resources, while land and physical capital
cannot function independently or improve themselves. Human resources, through
education, training, and healthcare, can enhance their own productivity and contribute
to the productivity of land and physical capital making them superior in a way.

Key difference Human resource Land and physical capital

ActiveVs Passive Active and dynamic i.e., they Passive resource
can learn adapt and make
decisions
Developable vs Human resources can be land and physical capital are
fixed developed and improved generally more fixed in their
through investments in characteristics.
education and training
Value creation Human resources add value to Land and physical capital alone
land and physical capital by cannot produce anything of
transforming them into useful value without human input.
goods and services.

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

Education plays a vital role in human capital formation by

• Skill Development:
Education provides individuals with the technical and professional skills needed
to perform jobs effectively and contribute to economic growth.
• Increased Productivity:
By enhancing skills and knowledge, education leads to increased individual and
overall productivity, which is crucial for economic development.
• Higher Earnings:
Educated individuals tend to earn more, as their skills and knowledge are
valued in the labor market.
• Healthier Lifestyle:
Education promotes health literacy, enabling individuals to make informed
decisions about their health and well-being, leading to a healthier workforce.
• Social Development:
Education fosters social development by promoting cooperation, trust, and civic
participation.
 • Economic Growth:
By increasing the overall skill level and productivity of the population, education
contributes significantly to the economic growth of a nation.

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

Health plays a crucial role in human capital formation by

• Increased Productivity:
Healthy individuals are more capable of working at their full potential, leading to
higher output, improved job performance, and greater contributions to economic
growth.
• Enhanced Cognitive Abilities:
Good health supports cognitive functions like focus, learning, and information
processing, enabling individuals to acquire skills and knowledge more
effectively.
• Reduced Healthcare Costs:
Preventive healthcare measures and early interventions can minimize the need
for expensive treatments.
• Human Capital as an Asset:
A healthy individual is a valuable asset for the economy, while an unhealthy
person can become a liability, dependent on others for support.

5. What part does health play in the individual's working life?

Good health is crucial for an individual's working life. A healthy individual can work
harder, perform better, and be more productive, leading to better work outcomes and
overall quality of life. On the other hand, poor health can hinder performance, reduce
productivity, and even lead to absenteeism.
Healthy individuals can focus on their tasks, work with greater intensity, and produce
higher quality work. They are less likely to experience fatigue or illness, which allows
them to maintain a consistent level of output. Healthy individuals have the physical
and mental capacity to learn new skills, take on new challenges, and advance in their
careers.
 6. What are the various activities undertaken in the primary secondary
and tertiary sector?
Primary sector Secondary Sector Teritiary Sector
Agriculture: Growin Manufacturing: Converti Trade: Buying and selling
g crops, raising ng raw materials into goods and services.
livestock. finished products (e.g., Transport: Moving people
making cars, clothing,
Forestry: Managing and goods from one place
and harvesting electronics). to another.
timber. Construction: Building Communication: Facilitati
structures like houses,
Fishing: Harvesting ng the transfer of
roads, and bridges.
fish and other information (e.g., phone,
aquatic resources. internet).
Mining: Extracting Banking: Providing
minerals and other financial services like loans
geological materials. and savings accounts.
Quarrying: Extractin Education: Providing
g stone, slate, or learning and training
other materials from services.
the earth. Health: Providing medical
care and services.
Tourism: Providing travel
and leisure services.
Insurance: Providing
financial protection against
risks.
 7. What is the difference between economic and non-economic
activities?
Economic activities Non-economic activities
Purpose: Generating income, profit, or Purpose: Personal enjoyment, social
wealth. contribution, fulfilling a sense of duty, or
helping others without expecting
payment.

Examples: Working at a job, running a Examples: Volunteering time, caring for

business, farming, manufacturing goods, family members, pursuing hobbies,
providing services for a fee. engaging in religious activities, enjoying
leisure activities.

Impact: Contributes to the national Impact: Does not directly contribute to

income (GDP), creates jobs, and drives the national income or GDP, but can
economic growth. have social, psychological, or personal
benefits.

Focus: Monetary transactions and the Focus: Non-monetary aspects of life and
exchange of goods and services relationships

8. why are women employed in low pay work?

Women are often employed in low-paid work due to a combination of factors
including gender discrimination, societal norms, and limited access to education and
training. These factors can lead to women being undervalued in the workplace,
restricted to certain types of jobs, and facing barriers to career advancement.

More detailed explanation

• Gender Discrimination:
Women may face prejudice and bias in hiring and promotion decisions,
resulting in lower wages for the same work as men.
• Societal Norms:
Traditional gender roles often confine women to specific occupations perceived
as "women's work," which are frequently lower-paying and offer fewer
opportunities for advancement.
 • Limited Access to Education and Training:
In some regions, girls and women may have less access to quality education
and vocational training, limiting their skill sets and career options.
• Occupational Segregation:
Women tend to be concentrated in certain industries and occupations (e.g.,
domestic work, garment factories, healthcare support) that are often
characterized by low pay and poor working conditions.
• Lack of Support for Work-Life Balance:
Women often bear the primary responsibility for childcare and household tasks,
which can make it difficult for them to pursue higher-paying, more demanding
jobs or work longer hours.

9. How will you explain the term unemployment?

Unemployment refers to the state of not having a job, despite actively seeking
one

10. What is the difference between disguised unemployment and

seasonal unemployment?
Disguised unemployment Seasonal unemployment
Hidden unemployment: Temporary joblessness:
It's a situation where people appear to Seasonal unemployment is temporary,
be employed, but they are not fully occurring during specific periods of the
utilizing their skills or capacity. year when demand for labor in certain
industries decreases.

Example: Example: Agricultural workers are

unemployed during the off-season when
In a family farm, even if only two people
there are no crops to tend to. Tourism
are needed to cultivate the land, five
workers may be unemployed during the
might be working. The extra three are in
off-peak season.
disguised unemployment.

Removing the extra workers would not It's predictable and occurs at the same
decrease the total output. time every year.
 Often found in agriculture and Common in agriculture, tourism, and
developing economies with large other industries with seasonal demand.
populations and limited job
opportunities.

11. Why is educated unemployment a peculiar of India?

Educated unemployment is a peculiar problem in India due to a combination of factors
including a mismatch between the education system and job market demands, a large
and growing educated population, and a slower pace of job creation compared to the
number of graduates.
Detailed explanation

• Mismatch between education and job requirements:

The Indian education system often emphasizes theoretical knowledge and
degrees rather than practical skills. This leads to graduates with degrees who
are not equipped with the skills needed for specific jobs.
• Rapid population growth and limited job opportunities:
India has a large and growing population, and the number of educated
individuals entering the job market every year exceeds the number of available
positions, particularly in skilled sectors.
• Outdated education system:
Some parts of the Indian education system are not aligned with the demands of
the modern job market. The focus on memorization rather than practical skills
leaves graduates unprepared for the workforce.
• Lack of skilled labor:
While there's a large pool of educated individuals, there's a shortage of skilled
workers in areas like technology, engineering, and other specialized fields,
further contributing to unemployment.
 12. In which field do you think India can build the maximum
employment opportunity?
India has the potential to create the most employment opportunities in
the manufacturing sector and supporting industries like electronics, defense, and small-
scale manufacturing. Additionally, agriculture and its related industries is also a major
source of employment, although the manufacturing sector can absorb a larger portion of
the workforce.

Detailed explanation
• Manufacturing Sector:
India can significantly boost employment by encouraging the manufacturing of
goods like electronics, defense equipment, and various other products. This
sector can employ both skilled and unskilled workers, offering a wide range of
job opportunities.
• Agriculture and Allied Industries:
While the agricultural sector already employs a large portion of the population, it
also faces issues like disguised unemployment. By supporting related
industries, such as food processing and agro-based manufacturing,
employment can be further increased.
• Tertiary Sector (Services):
The services sector, including IT and tourism, can also contribute to
employment growth, although to a lesser extent than the primary and secondary
sectors.
• Focus on Skill Development:
To effectively leverage the manufacturing sector, it's crucial to focus on skill
development programs to equip the workforce with the necessary skills for
these industries.

13. Can you suggest some measures in the education system to

mitigate the problem of educated unemployed?
To mitigate (lessen) educated unemployment, the education system needs an approach
focused on practical skills, vocational training, and aligning education with job market
needs. This includes revising curriculum, career counseling, promoting internships, and
promoting entrepreneurship.
 14. Can you imagine some village which initially had no job
opportunities but later came up with many?
Rampur was a small village which initially depended on agriculture; dependent on
rainfall. Then electricity reached the village and people could irrigate their fields and
could grow 2 to 3 crops in a year and get work. Some people set up small scale
industries which could be run by electricity and provided employment to people. A
school was established and now the population started to become educated and as a
result they could seek employment in and outside the village. The village became
prosperous leading to better health, education, transport and job facilities.

15. Which capital would you consider the best land labour physical
capital and human capital? why?
Human capital is generally considered the most important among land, labor, physical
capital, and human capital. This is because human capital, includes knowledge, skills,
and abilities, which is necessary to effectively utilize and improve the other forms of
capital. Human capital can learn, adapt, and innovate, making it the driving force behind
economic growth and development.

why human capital is considered the best:

• It makes other forms of capital productive:

Land, labor, and physical capital are essential, but without human capital, they
cannot be used to their full potential. Human capital provides the expertise to
manage resources, operate machinery, and develop new technologies.
• It is adaptable and improves over time:
Human capital can be enhanced through education, training, and experience,
leading to increased productivity and innovation. This continuous improvement is
crucial for economic progress.
• It drives economic growth:
Countries with strong human capital, like Japan and South Korea, have achieved
significant economic success even with limited natural resources.
• It is essential for long-term development:
Human capital investments in education and healthcare yield high returns,
contributing to a nation's overall development and prosperity.