❴ECONOMICS❵
Ch-2 People As Resource
Q. Define the following terms
1. Resources: Any material which can be transformed in a way that it becomes more
valuable is known as Resource.
2. Natural Resources: A resource which is in, on, or above the earth that people use to
meet their needs.
3. Human Resources: It means the size of population of a country along with its
efficiency, educational qualities and productivity.
4. Skilled workers : A skilled worker is one who has proper training and education to
work in a particular field.
5. Economic activities: All these activities that give income to the people are called
Economic activities.
6. Primary Activities: These include those occupations which are closely related to the
natural environment. e.g. Agriculture.
7. Secondary Activities: The occupations which produce finished goods by using the
products of primary activities as raw material.
8. Tertiary activity: It consists of all service occupations.
9. Disguised unemployment: It is a situation in which more people are engaged in an
activity than required.
10. Seasonal unemployment: It is a type of unemployment under which people are
employed during some parts of the year and remain without work during the rest of the
year owing to the seasonal nature of work.
11. Literate: According to the census of 2001, a person aged 7 years and above who
can read and write with understanding in any language.
12. Investment: The existing stock of physical capital assets such as machinery,
building, plant and equipment.
13. Productivity: The output of goods and services compared to the inputs used. It is a
measure of efficiency of factors of production.
14. Virtuous Cycle: It is a cycle created by advantaged parents who are educated and
provide proper hygiene and nutrition to their children.
15. Vicious Cycle: It is a cycle created by disadvantaged parents who are uneducated
and lack hygiene and nutrition and keep their children in the same state.
, QUESTION-ANSWERS
Q1. What is human capital?
Ans. When investment is made in the form of education, training and medical care, the
quality of the population improves and becomes a great asset. It is known as human
capital.
Q2. What do you understand by people as a resource?
Ans. People as a resource is a way of referring to a country's working people in terms of
their existing productive skills and abilities.
Q3. How is human resource different from other resources like land and physical
capital?
Ans. Human resource is different in the following ways:
(a) Land and other resources are fixed, limited and specified whereas human resources
can be nurtured through education and health.
(b)Human resources can bring a change in other resources whereas other resources
can not change or affect human resources.
(c) Human resources can make use of land and physical capital whereas land and
physical capital can not become useful on its own.
Q4. What is the role of education in human capital formation?
Ans. The role of education in human capital formation is as follows:
(a) Educated people earn more than the uneducated people.
(b) Literate population is an asset to an economy.
(c) It leads to higher productivity.
(d) It opens new avenues for a person.
(e) It provides new aspirations and develops values of life.
(f) It contributes to the growth of society.
(g) It enhances national income, cultural richness and the efficiency of governance.
Q5. 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 a 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.
Ch-2 People As Resource
Q. Define the following terms
1. Resources: Any material which can be transformed in a way that it becomes more
valuable is known as Resource.
2. Natural Resources: A resource which is in, on, or above the earth that people use to
meet their needs.
3. Human Resources: It means the size of population of a country along with its
efficiency, educational qualities and productivity.
4. Skilled workers : A skilled worker is one who has proper training and education to
work in a particular field.
5. Economic activities: All these activities that give income to the people are called
Economic activities.
6. Primary Activities: These include those occupations which are closely related to the
natural environment. e.g. Agriculture.
7. Secondary Activities: The occupations which produce finished goods by using the
products of primary activities as raw material.
8. Tertiary activity: It consists of all service occupations.
9. Disguised unemployment: It is a situation in which more people are engaged in an
activity than required.
10. Seasonal unemployment: It is a type of unemployment under which people are
employed during some parts of the year and remain without work during the rest of the
year owing to the seasonal nature of work.
11. Literate: According to the census of 2001, a person aged 7 years and above who
can read and write with understanding in any language.
12. Investment: The existing stock of physical capital assets such as machinery,
building, plant and equipment.
13. Productivity: The output of goods and services compared to the inputs used. It is a
measure of efficiency of factors of production.
14. Virtuous Cycle: It is a cycle created by advantaged parents who are educated and
provide proper hygiene and nutrition to their children.
15. Vicious Cycle: It is a cycle created by disadvantaged parents who are uneducated
and lack hygiene and nutrition and keep their children in the same state.
, QUESTION-ANSWERS
Q1. What is human capital?
Ans. When investment is made in the form of education, training and medical care, the
quality of the population improves and becomes a great asset. It is known as human
capital.
Q2. What do you understand by people as a resource?
Ans. People as a resource is a way of referring to a country's working people in terms of
their existing productive skills and abilities.
Q3. How is human resource different from other resources like land and physical
capital?
Ans. Human resource is different in the following ways:
(a) Land and other resources are fixed, limited and specified whereas human resources
can be nurtured through education and health.
(b)Human resources can bring a change in other resources whereas other resources
can not change or affect human resources.
(c) Human resources can make use of land and physical capital whereas land and
physical capital can not become useful on its own.
Q4. What is the role of education in human capital formation?
Ans. The role of education in human capital formation is as follows:
(a) Educated people earn more than the uneducated people.
(b) Literate population is an asset to an economy.
(c) It leads to higher productivity.
(d) It opens new avenues for a person.
(e) It provides new aspirations and develops values of life.
(f) It contributes to the growth of society.
(g) It enhances national income, cultural richness and the efficiency of governance.
Q5. 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 a 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.
