High School Economics

An effort to pictorially represent the nuances of

economics in a simpler manner, making it easier to
understand.
A visualization

by
Zalak Upadhyay

Information & Interface Design | National Institute of Design

Concept

The idea behind this project was to visualize the existing CBSE Class IX Economics
textbook, to make it easier to understand and grasp the basics, terminology and concepts
without getting into mundane prose given in textbooks.

The concept came to my mind while working on a classroom project to visualize economic
data. When we started visualizing the data it was very important for us to know what exactly
were we visualizing, this required in depth knowledge of the field, the acronyms,
terminology etc. To my dismay I realized I had a very little idea about it, even the economics
learnt back in school seemed hazy and wasn’t helping much. So, I resorted to the textbooks
to get my basics right. But, reading the same old textbooks again was an excruciatingly
painful task. That’s when i remembered the technique I used back in school to ease my
learning experience. I used to read the chapters and simultaneously make graphical notes
which would reduce a ten page long chapter to some 2 page long notes, made by me, and
then I never had to touch the book ever again. Those notes helped me year long.

Hence, the idea to visualize the book.

Source: Economics, Textbook for Class IX, CBSE

Production in Villages
A brief look at production in terms of Indian villages.
What are the major types, factors and their results,
scale, requirements and classification.

Types
Indian villages have production of two types
Small scale Large scale namely small scale and large scale. Where the
small scale production includes industries like
sugar & jaggery production, the major industry
of Indian villages is agriculture. The economy
Suga
r of Indian villages depends on agriculture and
the most common occupation is that of a
farmer, either working in one’s own farm or
Sugar / jaggery employed by a person owning a bigger chunk
Dairy Agriculture
of land to work on their fields.

Needs

Forests &
Land Water Minerals

Natural Human Physical

Resources Labor Capital Capital

Fixed Capital Working Capital

---------------- -------------------

Raw
Buildings Money Materials
Tools Machines

Now, the production has some needs or rquirements which are also known as the factors of production.

The four major factors of production are:

Natural resources: Certain resources provided to us by mother earth like land, water, minerals etc are an essential part of production, moreso when we
are talking about agriculture.

Labor: There is an obvious need of labor to work on the fields and use the resources to produce, this is more of physical human effort. These are people
who do the work. Some production activities require highly educated workers to perform the necessary tasks. Other activities require workers who can
do manual work.

Physical Capital: This has more to do with tangible things. Physical capital can be majorly divided into two categories:

a) Fixed Capital: Tools, machines and buildings range from very simple tools such as farmer’s plough to sophisticated machines such as generators,
turbines, computers, etc. Tools, machines, buildings can be used in producation over many years, and are called Fixed Capital.

b) Working Capital: Production requires a variety of raw materials such as yarn used by the weaver and the clay used by the potter. Also, some
money is always required during the production to make payments and buy other necessary items. Raw materials and money in hand are called
working capital. Unlike, tools, machines and buildings, these are used up in production.

Human Capital:One needs knowledge and enterprise to be able to pur together land, labor and physical capital and produce an output either to use
yourself or to produce an output either to use yourself or to sell in the market.
Production in Villages
A brief look at production in terms of Indian villages.
What are the major types, factors and their results,
scale, requirements and classification.

Produces

All the industries and production activities like small scale manufactiring, dairy, transport
Good & Services etc, exist to produce some goods and services that can be consumed and utilised by
humans for their basic needs, comfort and development.

Leads to

Houses &
Schools

Growth & prosperity

Electricity

Irrigation
Health Center
Transportation

All the production activities require some inputs in terms of natural resources, labour, money etc, but then they have their outputs as well. Like goods and
services. These goods and services lead to development, which in turn leads to growth nd prosperity.

A village needs certain facilities to survive and sustain on it’s own. Some of these are:

Irrigation / Water supply : Proper water supply is very important both for the residents in terms of hygiene and also for the proper functioning of the
industries, especially agriculture, which requires water for irrigation.

Electricity: All of us know the importance of electricity for daily gneral purposes and to run machines.

Transportation: It is very essential for a better connectivity of the village to near by villages and cities, for a better market.

Housing: One of the most essential requirements of humans is a shelter to save themselves from the various weather conditions, sanitation and good
health.

Schooling: Education is vary important for a nation’s progress. And it has to be imparted at the very basic level. It is very important to have schooling
facility at a short distance for a proper education of the kids so that they can develop, and aid the development of their village with their expertise.

Health center: Health and sanitation is also an essential part of human society’s development.
Production in Villages
A brief look at production in terms of Indian villages.
What are the major types, factors and their results,
scale, requirements and classification.

Unevenly Self Employed

Fertility Employed
divided

Land Labor
Land ia a vary important factor As mentioned previously labor, i.e
for agriculture. But, it doesn’t end people tp work on the land in
at land, it’s size and fertility terms of physical and intellectual
matters a lot. Two of the major labor are also important. Labor in
concerns regarding the Land in
Us ds terms of Indian agriculture is seen

ee
Indian agricultural context are in two major categories. Self
fertility ans size. Fertility has been
majorly affected by chemicals and
es N employed are the ones, who own
land and work on their own land,
weather conditions. Also, the whereas employed are those who
distribution of land is very work on other’s farm for daily
uneven. wages.

Agriculture
The crops are highly dependent on The production is increased manifold
natural conditions. and the quality improves as well.

Often leads to drought and famine. But, the studies reveal that the

At times crops are lost to rodents

Has products lack the natural taste and
nutrient values.
and infestations.
Chemicals affect the fertility and
Production is very average both in pollute the land.
quantity and quality, and the farmer
suffers. A reduction in water tables is seen.
Styles
Indian agriculture is mostly simple all over the country Whereas, there are certain parts of India, where the
and depends on monsoons for it’s irrigation and other farmers have started to develop and keep updated with
seasonal activities for the production. The farmer the happenings around the world in their field. They have
community at remote villages is still uneducated and adapted various methods to increase their production like
ignorant about the modern farming methods and multiple farming and modern methods. They use tools
continues to tradition of old days. whereas weather like tractors, threshers, pumps etc. Also, chemical
conditions have changed and hence it leads to a very fertilizers, pesticides are being used along with High
normal production. Yielding Variety (HYV) seeds.

Normal Increased
Production Production
People as Resource
An effort to explain population as an asset for the
economy rather than a liability. A look at people and
population as human capital.

n s
e ptio
on c
i s c Food Issues
M

Population
Health
Job issues Issues

Skills

+
+
education
+
training
+
medical care

Human Capital
u t h
Tr
Increased Gross National Product
People as Resource
An effort to explain population as an asset for the
economy rather than a liability. A look at people and
population as human capital.

Leading example Japan

Market activities
Countries like Japan have
invested in their human Activity performed for pay
resource. They did not have any or profit.
natural resource. These
countries are developed/rich Tertiary Non - Market activities
countries. They import the Production for self
Trade
natural resources needed in consumption.
their country. They have
Transport
invested intheir people especially
in the field of education and
Communication
health. These people have made
efficient use of other resources
Banking
like land and capital.Efficiency
and technology evolved by
Education
people have made these
countries rich/developed.
Health & Services

IT revolution Tourism
India’s IT revolution is a
Secondary
striking instance of how the
importance of human capital Manufacturing
has come to acquire a higher
postion than that of Production
material, plant and
machinery. Technology
Primary
Green revolution Agriculture

India’s green revolution is a Forestry

dramatic example of how
the input of greater Animal Husbandary
knowlwdge in the form of
improved production Fishing
technologies can rapidly
increase the productivity of Poultry
scarce land resources.
Mining

Quarrying

Indirect
Betterment of
Society
Employment

Direct Virtuous
Education
Cycle
Higher salaries

Better lifestyle Development High GNP

Better Health Progress

Human Capital
People as Resource
An effort to explain population as an asset for the
economy rather than a liability. A look at people and
population as human capital.

Literacy rate
Education opens new horizons, provides new aspirations
and developed values of life. It also contributes towards
growth of the society. It enhances national income, cultural
richnesss and increases the efficiency of governess.

Plans by Government
Provision for universal access, retention and quality in elementary education with special
emphasis on gorls.

Establishment of pace setting of schools like Navodaya Vidyalaya in each district.

Vocational streams for knowledge and skill development.

Free education till the age of 14, the Sarva Shiksha Abhiyaan.

Focus on distant education, convergence of formal, non-formal , distant and IT

education institutions.

Quality of
Population

Literacy rate statistics

80

70

60

50

40

30

20

10

0
1961 1971 1991 2001
People as Resource
An effort to explain population as an asset for the
economy rather than a liability. A look at people and
population as human capital.

Life Expectancy
A healthy mind lives in a healthy body. To be able to work
and apply one’s skills effectively one needs to be in a healthy
state of mind. Unhealthy people are a liability to the nation.
Hence, life expectancy is an important factor.

Plans by Government
Improvisation of accessibility of health care, family welfare and nutritional service with
special focus on the under-privileged segment of the population.

There has been a constant effort to increase man power in the medical sector.

Special mother care and childcare units have been provided.

Certain essential vaccinations are distributed for free in vaccination camps. Ex: Polio.

New medical colleges are opened up, and interns are requested to serve in rural areas.

Quality of
Population

Health related statistics

9,209 23,555 43,322

Hospitals

1,17,198 5,69,495 8,70,161

Beds

61,800 1,43,887 7,37,000

Medical Personnels
1951 1981 2001
People as Resource
An effort to explain population as an asset for the
economy rather than a liability. A look at people and
population as human capital.

Labor Distribution Women are paid only when they enter the
Due to historic or cultural reasons there is a division of labor market.
labour between men and women in the family. Women
generally look after domestic chores and men work in the
fields. Women are not paid for their doemstic work and Their earning like that of their male
hence, don’t add up to National Income. counterpart depends on their education and
skill.

Majority of Indian women have meagre

education and low skill formation.

Women are paid low compared to men.

Most women work where job security is

not there, no legal protection, low and
irregular income.

Fact is women with high education earn at

par with men and do exceptionally well in
fields like teaching and medicine.

Major
Issues
Wastge of manpower
resource.

Increases economic
Seasonal Rural overload.
It happens when people are not able to find
jobs during some months of the year. Dependence of
People dependednt on agriculutre usually
face this problem.
unemployed people on
working population.

Detrimental to overall
Disguised growth of an economy.
Here people appear to be employed. This
usually happens among family members
engaged in agricultural activity. The job
Unemployment
requires 5 people but engages 8 people, Unemployment is said to exist when people who are willing
making 3 extra.
Urban to work at the going wages cannot find jobs. The wrokforce
population includes people from 15 years to 59 years.

Educated
Often there are people who are educated
but do not get a job due to surplus
manpower. There is unemployment among
technically qualified people on one hand,
whereas there is a dearth of technical skills
requires for economic growth.
Poverty
A look at one of the most difficult challenges faced by
Independent India. The definition, parameters, view of
social scientists and world wide view.

Lack of sanitation
Lack of sanitation
People in India below poverty
line, often don’t have proper No regular Job
drinking water and sannitation, Due to lack of education they
like toilets. most often end up doing harsh
physical labour, which again is
not a permanent job and Can’t send my kids to school!
changes according to need. When there’s not enough money to feed the

Hunger
family, often the kids are also taken into labour

No regular Job
and hardly have time and money to go to
schools.
Hunger
Most of the times they can’t Landlessness
even manage a proper meal per Often the poor people have no

Can’t send my kids to school!

day, sometimes they go hungry property of their ow, even if they
for days. are farmers, they earn wages by
working on someone else’s land.

26 crore people in India live in poverty!

Malnutrition
Child labour
Malnutrition
When a meal per day is luxury,
nutrition definitely goes for a
toss. Most of the kids, die at an
India has the single largest concentration
of poor in the world.

Unemployment
early age due to lack of One in every four people in India is poor.
nutrition
Lack of clean water
Lack of shelter

Sense of helplessness
They even lack the basic necessity
In most of the cases, poor people of safe and clean drinking water,
don’t even have proper shelter to hence keep falling sick, and their
live under. They are often seen chances of survival are meagre.
sleeping in public places, under
bridges, on construction sites,

Lack of clean water

railway stations etc.

Sense of helplessness Child labour

All the bad conditions, with no Due to lack of funds in the family,
food, no health care, lack of a the children in the family are

Can’t afford medical bills!

regular job and bad treatment by forced to work, which is against
the society creates a sense of the constitutional rights.
helplessness.

Unemployment Can’t afford medical bills!

Lot of times, there’s a struggle to Medical treatments are next to impossible

Landlessness
find a job that can sustain their for them with the increased medical bills
family. and lack of proper access to medical
centres.
Poverty
A look at one of the most difficult challenges faced by
Independent India. The definition, parameters, view of
social scientists and world wide view.

What Social Scientists

have to say?
Income
Consumption
Usually the indicators used to measure poverty are level of
income and consumption. Also, known as the ‘poverty line’.
A person is considered poor if his or her income or
consumption level falls below a given “minimum level”
necessary to fulfill basic needs. What is necessary to satisfy
basic needs is different at different times and in different
countries. Therefor, poverty line may vary with time and
place.
Factors for calculation of Indian Poverty Line
Minimum level of food requirement (in Calories),
depending on age, sex and type of work.
Clothing
The usual terminology
Social Exclusion
According to this concept, poverty must be seen in
terms of the poor having to live only in a poor
surrounding with other poor people, excluded from
enjoying social equality of better-off people in better
surroundings. Social exclusion can be both a cause as well
as a consequence of poverty in the usual sense. Broadly,
it is a process through which individuals or groups are
excluded from facilities, benefits and opportunities that
others enjoy.
Vulnerability
Vulnerability to poverty is a measure, which describes
the greater probability of certain communities ( say,
members of a backward caste) or individuals (such as
widow or a physically handicapped person) of becoming,
or remaining poor in the coming years.
Vulnerable groups
The proportion of people below poverty line is also not
same for all social groups and economic categories in
India. Social groups which are most vulnerable to poverty
are scheduled caste and scheduled tribe households.
Similarly, among the economic groups, it’s the rural
agricultural labour households and the urban casual
labour households.

Footwear Apart from these social groups, there is also inequality of

incomes within a family. In poor families all suffer, but
Fuel & Light some suffer more than others. Women, elderly people
and female infants are sytematically denied equal access
to resources available to the family.
Educational & Medical requirements

Inter - State Disparities

Calculating poverty line The proportion of poor people is not the same in every
state of India. The success rate of reducing poverty varies
from state to state. States like Orissa, Bihar, Assam,
Poverty Line = Level of Factors X Cost Price (C.P) Tripura and Uttar Pradesh face a serious problem of
poverty.

Things to know
Poverty line for Urban and Rural areas is different
due to difference in cost price.

Poverty line is calculated based on surveys

conducted every 5 years.

These surveys are conducted by National Sample

Survey Organisation (NSSO)
 Poverty
A look at one of the most difficult challenges faced by
Independent India. The definition, parameters, view of
social scientists and world wide view.

Global poverty Scenario

Nigeria
Bangladesh
70.8
India
Pakistan

35.3 36.0
China
Indonesia

16.6 17.0
Brazil
Sri Lanka

7.5 8.2

5.6

Poverty: Comparison among some selected coountries

Source: World Development Report, 2001

Poverty
A look at one of the most difficult challenges faced by
Independent India. The definition, parameters, view of
social scientists and world wide view.

Anti-Poverty Measures
Targeted Anti-Poverty programmes
National Rural Employment Guarantee Act
(NREGA) 2005 was passed in September 2005.

The Act provides 100 days assured employment

every year to every rural household in 200 districts.

One third of the proposed jobs are for women.

The central governement will also establesh National

Employment Guarantee Funds.

National Food for Work Programme (NFWP)

was launched in 2004, in 150 backward districts of
the country.

It is open for all rural poeple who are in need of

wage employment and desire to do manual unskilled
labor.

Prime Minister Rozgar Yozana (PMRY) started

in 1993.

The scheme was aimed at creating self employment

opportunities for educated unemployed youth in
rural areas and small towns.

Rural employment Generation Programme

(REGP) launched in 1995 had a similar aim.

SwaranaJayanti Gram Swarozgar Yojana

(SGSY) was launched in 1999 which brought
together poor families to create self help groups
through bank credit and government subsidy.

Pradhan Mantri Gramodaya Yozana (PMGY)

launched in 2000, gave additional central assistance
to states for basic services such as primary health,
primary education, rural shelter, drinking water, and
electrification.