Class: IX

Sub: Economics

Answer the following questions:

***IMPORTANT NOTE***: THESE ARE ONLY REFERENCE SOLUTIONS
FOR THE HELP. NOT TO BE COPIED.

*Notes:
Class 9, Understanding Economics
Chapter 2, PEOPLE AS RESOURCE
Solutions of Ncert Textbook Exercise Questions
Q.1: What do you understand by people as a resource?
Solution: People as a Resource is a way of referring to a countrys working
capital in terms of their existing productive skills and abilities. Like various other
resources people or population is a resource commonly termed as - Human
Resource.
There are some people who regard population as liability rather than an asset.
But it is not true; people can be turned into a productive asset if we make
investment on them in the form of education, training and medical care. For
example, Japan did not have any natural resource. They made investments on
their people especially in the fields of education and health. Ultimately, these
people after efficient use of their resources made their country rich and
developed.
Q.2: How is human resource different from other resources like land and physical
capital?
Solution: Human resource superior to other resources like land and physical
capital because human resources can make use of land and capital. Land and
physical capital can not become useful of their own.
Q.3: What is the role of education in human capital formation?
Solution: Education has a vital role to play in human capital formation or in
human resource development. It helps an individual to make better use of
economic opportunities available before him. Education and skill are the major
determinants of the earning of an individual in the market. Apart from these
education has many other benefits such as, It helps a man to make all around development and opens the avenue of
prosperity.
It uplifts his abilities as a skilled worker and enables him to earn better.
Education enables a man to get rid of bad habits.
It helps a man to acquire good habits and become an ideal citizen for his
country.

Literate parents are aware of the benefits of education of their children.

They are also conscious of proper nutrition and hygiene.

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

Solution: Health does not mean survival only. This term includes something much
more. It involves not only the physical fitness of the individual but also his mental,
economic and social well-being.
The role of health in human capital formation or in individuals working life is quite
important. Health involves the physical, mental, economic and social well-being
of an individual. It not only improves the quality of life of an individual but also
adds to the human resource development on which depend the various sectors
of national economy. Health covers a wide range of activities including family
welfare, population control, drug control, immunization and prevention of food
adulteration etc. Only a healthy person can do full justice to his job. Thus it plays
a vital role in individuals working life. An unhealthy person is a liability for his
family, organization and country. No organization will employ such a person who
can not work efficiently because of ill-health.
Q.5: What part does health play in individuals working life?
Solution: The health of an individual helps him to realise his potential
and also gives him the ability to fight illness. An unhealthy individual is
a liability to his place of work. The health of a person is directly related
to his efficiency. As compared to an unhealthy individual, a healthy
person can work for longer hours supported by his good health. He
would also help the firm to increase its output and hence raising GDP.
Q.6: What are the various activities undertaken in the primary sector, secondary
sector and tertiary sectors?
Solution: Activities can be classified under the following three sectors on the
basis of the nature of their products or materials used:
Primary Sector - Activities concerned with gathering or making available
materials provided by nature are included in Primary Sector like agriculture,
forestry, animal husbandry, poultry farming, fishing, mining etc.
Secondary Sector - Such activities which transform raw materials or primary
products into commodities more useful to man are included under Secondary
Sector. Some such activities are like manufacturing, quarrying.
Tertiary Sector - This sector includes those activities which are a must for
running modern industries or support the activities of the above two sectors. For
example banking, transport, trade, education, insurance etc. person can work
more efficiently and with greater productivity.
Q.8: Why are women employed in low paid work?
Solution: There is no gainsaying that women are generally employed in low paid
work as compared to men. The reasons of the same are as follows:

Education is one of the major determinants of the earning of an individual

in the market. As majority of the women have meager education so they
are paid less than men.
Along with education, skill is also an important determinant which affects
the pay of an individual. Women are generally unskilled so they are
employed in low paid work.
It is also a fact that women can not do as much physical work as men can
do. So naturally they are paid less than men.
Women have generally an additional responsibility of bringing up their
family and children and so they can not be as regular as men in their
duties. Hence, they are employed in low paid work and paid less as
compared to men.

Q.9: How will you explain the term unemployment?

Solution: A situation in which a section of the people, who are able and willing to
work, but do not find gainful work is referred to as unemployment. Such a
situation is often found in developing countries as compared to developed
countries.
Q.10: What is the difference between disguised unemployment and seasonal
unemployment?
Solution: Disguised unemployment - In disguised unemployment, people
appear to be employed while actually they are not adding to the productivity. This
can be explained by the following example:
Farmers in India use primitive methods of production in agriculture due to
poverty. Lack of ownership right present in the existing land tenure system e.g. if
we use modern methods of cultivation, a situation can be created when only two
persons of a family can complete the work in farm instead of three. But the lack
of modern methods and poverty create a situation that three persons work when
the same work can be performed by two persons. So, one person is disguisedly
employed.
Seasonal unemployment - Seasonal unemployment happens when people are
not able to find jobs during some months of the year. Agriculture in India is not a
whole time occupation. It is seasonal. The cultivators generally grow only one
crop in a year. As such in the rural sector and in the lean season, the cultivators
and the hired agriculture workers find no work to do. The seasonal character of
Agriculture in India leads to seasonal unemployment.
Q.11: Why is educated unemployment, a peculiar problem of India?
Solution: Unemployment has become a common problem not only in rural areas
but also in urban areas. Educated unemployment has become a common
phenomenon in urban areas in our country. The reasons for the same are the
following:
1. Defects in the Educational System
Our educational system has failed to see the ground realities. After spending so
many years in schools and colleges, our young generation, both men and

women, come out in large numbers without any practical training whatsoever.
They add to the number of already educated unemployed thus, making the
problem all the more complex. In this way our educational system failed to deliver
the goals as was expected.
2. Growth in the Industrial and Service Sectors is not Adequate
The Growth in the Industrial and Service Sectors is not so satisfactory. No doubt
that these two sectors have shown some improvement in creating employment
opportunities over the years. But this improvement is not adequate to absorb the
educated unemployed persons. The continuous migration of unskilled labour to
urban areas has further added to the problem of the educated unemployed.
3. Visa Restrictions imposed by the Developed Countries
Some of our educated unemployed are prepared to seek jobs in foreign countries
like USA, Britain, Germany etc but Visa Restrictions imposed by most of the
developed countries have further worsened the employment opportunities for the
educated people.
Q.12: In which fields do you think India can build the maximum employment
opportunities?
Solution: Economic activities are divided into three sectors - primary, secondary
and tertiary. The primary sector especially agriculture employs two-thirds of the
population of India. The secondary sector, especially manufacture industry,
absorbs about 10% of the total working population while tertiary sector employs
about 25% of our population.
In the case of agriculture, there is no scope for further employment. As a result of
disguised unemployment, many members of the farming families are unable to
get full time work. As a result, much emphasis will now have to be put on
manufacturing activities which belong to the secondary sector. This sector now
absorbs only 10% of the working population. There is much scope in this sector
so new manufacturing units can be set up and maximum employment
opportunities created.
Some people can be absorbed in the tertiary sector as well by expanding the
scopes of activities like - transport communication, banking, education, health,
tourism and other such services.
Q: 13 Can you suggest some measures in the education system to
mitigate the problem of the educated unemployed?
Answer Measures in the education system to mitigate the problem of
the educated unemployed:
(a) Make education at the secondary level more career-oriented, which
would endow individuals with not only education but also the requisite
skills for gaining successful employment.
(b) Create a sort of screening process whereby each individual chooses
subjects that suit his or her abilities.

(c) The introduction of newer subjects and fields of study at the school
level should be accompanied by a growth of job opportunities in the
sectors that would employ the students electing to study such
subjects.
Q: 15 Which capital would you consider the best: land, labour, physical
capital and human capital? Why?
Answer Human capital makes use of the other resources like land,
labour and physical capital to produce an output. The other resources
cannot become useful on their own. Hence, human capital may well be
considered the best among all the resources.

Class: IX
SA I

Economics (Important Questions)

Assignment 3 (People As Resource)

Answer the following questions:

Q.1: When does population become human capital?
Q.2: What is human capital?
Q.3: Name the different sectors of economic activities.
Q.4: Define the infant mortality rate?
Q.5: What is death rate?
Q.6: What is Birth Rate?
Q.7: Which factors affect the quality of population?
Q.8: Give an outline of the various causes of unemployment in India.
Q9:

Why human capital is considered better or superior to other

resources like land and physical capital?

Q10: Inspite of natural resources constraints countries like Japan have

developed . How?
Q11: Statistically the unemployment level in India is very low. Justify
the statement?
Q12. How the self-employment in the primary sector doesnt contribute
in raising the living standard of people?
Q13.Give a lucid note on the employment scenario in the three sector of
the economy in India?
Q14.What are the causes of unemployment in India? Explain any five?
Q15. What steps are taken to improve the quality of education in India?
Q16. What strategy has been adopted by the government in the Tenth
Five Year Plan to improve the educational sector?

Class: IX

Sub: Economics
Assignment 2 (Human Resource)

Answer the following questions:

*Notes:
Answer Q.1: Population becomes human capital when an
investment is made on it in the form of education, training,
and medical care.

Answer Q.2: Human capital is the stock of skill and knowledge

of production embodied in them.
Answer Q.3: Economic activities have been divided into three
different sectors: Primary, Secondary, and Tertiary.
Answer Q.4: Infant Mortality Rate is the number of babies died
among 1000 babies under one year age. In other words, it is
the death rate of a child under one year age.
Answer Q.5: Death Rate is the number of people who die for
every 1000 people during a particular period of time.
Answer Q.6: Birth Rate is the number of babies born for every
1000 people during a particular period of time.
Answer Q.7: Generally three factors (i) Literacy rate (ii)
Health (iii) Skill
Answer Q.8: Causes of unemployment:
1. Ever increasing population,
2. Low economic growth rate,
3. Defects in educational system,
4. Comparatively lower growth rate in the industrial and
service sectors,
5. Migration of people from rural to urban areas,
6. Use of outdated technology, and
7. Slow growth in agricultural sector.
Answer Q.9: Human Resource, with education and skills can
make use of land and capital. On the other hand, land and
capital cannot become useful on its own.
Answer Q10: Textbook page no. 19 (left side) last para

1.
2.
3.
4.
5.

Countries.natural resource.
These countries..their country.
They haveeducation and health.
These people land and capital.
Efficiency.rich/developed.

Answer Q11: Textbook page No. 25 (right side) last para

In case
1.
2.
3.
4.
5.

of India, statistically, the unemployment rate is low.

A large.counted as employed.
They appear.. adequate for them.
The workupon them.
They may.to sit idle.
They tend subsistence level.

Answer Q12:

Textbook Page No. 26 (left side) second para

The employment structure is characterized by self-employment

in the primary sector.
1.
The wholeis really needed.
2.
So there..agriculture sector.
3.
But the..been produced.
4.
This concept.in the rural sector.
5.
But this doesin search of jobs.
Answer Q13:
1.
2.
3.

Textbook page No. 26(left side) last para

Agriculture, is the most.or the tertiary sector.

In the secondaryabsorbing.
In case of the..and so on.

Answer Q14:

There are many causes of ever increasing unemployment in

India.
The following are the main reasons:(1) Slow economic growth rate - Rate of economic growth in
India has been slow. It has been ranging between 5-6 percent
per annum. This slow rate fails to provide more employment
opportunities to the increasing population.
(2) Rapid and high growth rate of population- Constant rise in
population has been perpetual and serious problem for India.
Its rapid growth not only eats away the existing resources
retarding capital formation but also becomes main cause of
unemployment.
(3) Slow growth of agriculture sector - No doubt agriculture is
the dominant occupation absorbing about 60% of the work
force of India. But due to it's seasonal character it does not
provide work to the farmers throughout the year. There are
some other problems in Indian agriculture also. So about 15%
of working population in agriculture suffers from disguised
and seasonal unemployment.
(4) Slow progress of industrialisation -Growth of industries has
been slow in India. Industrial and services sectors are further
weakened by global competition, ever increasing power shortage, industrial disputes, wrong policies of the govt.,
shortage of raw material etc. All this leads to problem of
unemployment.
(5) Less saving and investment - Shortage of capital is a
problem in India. Whatever little capital is available; it has not
been properly used or invested. Investment is low as savings

are low due to large scale poverty. These low savings and
investment are inadequate to provide employment to all.
(6) Defective educational system - Our educational system has
not kept pace with the times. More stress on academics then
practical training in schools and colleges has generated more
youth, both men and women; with degrees in their hands but
unfit for dynamic jobs. So unemployment has increased due to
this also.
(7) Migratory character of labour - Mostly industries are
located in urban areas but labourers in these are ruralites
who go back to their villages when the work is finished. But
soon they are out of pocket and again come to urban areas in
search of jobs. So number of employees swells.
(8) Use of capital intensive technology - Where India needs
labour intensive technology for more employment, producers
industrialists due to their own constrains (competition,
profitability, etc) are replacing labour by big machines and
capital . This creates unemployment.
Answer Q15:
(a) Government has made a provision for providing universal
access and quality in elementary education with a special
emphasis on girls.
(b) Navodaya Vidyalaya Schools have been established in each
district.
(c) Vocational streams have been developed to equip high
school students with occupational related knowledge and

skills. The plan outlay on education has increased from Rs.

151 crore to Rs. 43,825 crore.
(d) 'Sarva Siksha Abhiyan' is a significant step towards
providing elementary education to all children in the age group
of 6 to 14 years by 2010.
(e) There has been a significant growth in the number of
universities and institutions of higher education in specialised
areas.
(f) There has been a great increase in the number of colleges,
universities, enrolment of students and recruitment of
teachers.
Answer Q16:

Textbook page No. 22 (right side) second para

1. The tenth plan ..9 % by the end of the plan period.

2. The strategy ..use of information technology.
3. The plan also focuses on..IT education institutions.