GRADE IX
ECONOMICS CHAPTER-2
PEOPLE AS RESOURCES
1. What do you understand by people as resources?
“People as resources” is a way of referring to a country’s working population in terms of their
existing productive skills and abilities. People as resources or human resources turn to be an asset
when investment made in the form of education and health. Thereby turning into a productive
section of the economy and contributing to the GDP.
2. How are human resources different from resources like land and physical capital?
Human resources are different from land and capital because they only can make use of land and
capital with their knowledge. They add to the productive power of the country whereas land and
capital cannot become useful on their own.
Land and physical capital can be productive only if they are utilized efficiently by human resources
therefore human resources in a way is superior to other resources like land and capital.
3. What is the role of education in human capital formation?
Education is an important factor for the development of human resource.
Investment made in education yields a high return in the future in the form of higher earnings and
greater contribution to society. Education adds to the total quality of the labor and increases the
total productivity. It enhances national income, cultural richness and increases the efficiency of
governance. The investment made in education causes higher earnings and greater contribution to
the economy of the country.
4. What is the role of health in human capital formation?
Health plays an important role in human capital formation. The health of a person helps him to
realize his potential and the ability to fight illness. Health is an indispensable basis for realizing
one’s wellbeing. Improvement in the health status of the country turns into an asset and
contributing to the GNP of the country.
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ECONOMICS CHAPTER-2
PEOPLE AS RESOURCES
1. What do you understand by people as resources?
“People as resources” is a way of referring to a country’s working population in terms of their
existing productive skills and abilities. People as resources or human resources turn to be an asset
when investment made in the form of education and health. Thereby turning into a productive
section of the economy and contributing to the GDP.
2. How are human resources different from resources like land and physical capital?
Human resources are different from land and capital because they only can make use of land and
capital with their knowledge. They add to the productive power of the country whereas land and
capital cannot become useful on their own.
Land and physical capital can be productive only if they are utilized efficiently by human resources
therefore human resources in a way is superior to other resources like land and capital.
3. What is the role of education in human capital formation?
Education is an important factor for the development of human resource.
Investment made in education yields a high return in the future in the form of higher earnings and
greater contribution to society. Education adds to the total quality of the labor and increases the
total productivity. It enhances national income, cultural richness and increases the efficiency of
governance. The investment made in education causes higher earnings and greater contribution to
the economy of the country.
4. What is the role of health in human capital formation?
Health plays an important role in human capital formation. The health of a person helps him to
realize his potential and the ability to fight illness. Health is an indispensable basis for realizing
one’s wellbeing. Improvement in the health status of the country turns into an asset and
contributing to the GNP of the country.
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