Here I am going to provide you CBSE Class 9 Economics Notes Chapter 1 - Chapter 2 - People as Resource. You can also Download PDF of these notes. People as Resource, explains how population becomes an asset when invested in education, health, and skills. It highlights human capital formation, the importance of quality population, and different types of unemployment such as seasonal and disguised unemployment. The chapter shows how improving human resources boosts economic development. By going through People as Resource Class 9 Notes you will acquire a better command on this chapter. So, use these notes and do your best!!
Introduction
Meaning of “People as Resource”
In economic terms, a resource refers to anything that can be used to produce goods and services. Traditionally, land, water, forests, and minerals are considered resources. However, human beings can also be treated as a resource.
When the existing population is provided with education, training, and healthcare, it develops skills and abilities. These abilities help in increasing production and contributing to the national income. Therefore, population becomes an asset rather than a liability.
The process of developing the working skills and abilities of people is known as human capital formation.
Human Capital and Human Capital Formation
When investment is made in the form of education, training, and medical care, it leads to the creation of human capital.
Human capital refers to the stock of skilled and productive people in the country.
Just as physical capital (machines, tools, factories) increases production, human capital also increases productivity in the economy.
Thus, expenditure on:
- Education
- Healthcare
- Technical training
is considered an investment because it increases future income and productivity.
Population as an Asset
India has a large population. Whether this population becomes an asset or a burden depends upon its quality.
If the population:
- Is educated,
- Possesses skills,
- Is healthy,
- And is provided employment,
then it can contribute positively to economic growth.
However, if the population:
- Lacks education,
- Suffers from poor health,
- Remains unemployed,
then it may not contribute effectively to development.
Thus, the quality of population is more important than the size of population.
Role of Education
Education plays an important role in transforming population into human capital.
Education helps individuals:
- Acquire knowledge,
- Develop skills,
- Improve efficiency,
- Increase earning capacity.
An educated workforce can adopt new technology easily and increase production. Therefore, investment in education leads to economic development.
Role of Health
Health is another important factor in human capital formation.
A healthy individual:
- Works efficiently,
- Produces more output,
- Contributes effectively to the economy.
Poor health reduces productivity and lowers income. Therefore, investment in healthcare improves the quality of human resources.
Importance of Human Resource in Economic Development
Countries that have invested in the education and health of their people have shown rapid economic progress.
Even countries with limited natural resources have achieved development because of their skilled and educated population.
Thus, human resource is considered a valuable asset for the nation.
Economic Activities by Men and Women
Economic Activities – Meaning
Economic activities refer to those activities which are performed for the purpose of earning income or producing goods and services.
All people in the country are engaged in some kind of activity. However, these activities can be broadly divided into two categories:
- Market activities
- Non-market activities
Market Activities
Market activities are those activities which are performed for pay or profit.
These include:
- Production of goods and services for sale in the market
- Work done in offices, factories, farms, shops, and industries
- Any activity for which wages or salary is received
For example:
- A teacher teaching in a school and receiving salary
- A farmer producing crops for sale
- A factory worker producing goods
- A shopkeeper selling goods
All these are market activities because they generate income.
Non-Market Activities
Non-market activities are those activities which are not performed for pay.
These include:
- Production for self-consumption
- Work done at home for family members
For example:
- A farmer producing crops for family consumption
- A mother cooking food for the family
- Household work like cleaning, washing, and caring for children
Such activities are important for the family but they are not counted as economic activities in the market because no payment is received.
Role of Women in Economic Activities
Women play a very important role in both market and non-market activities.
However, a large number of women are engaged in non-market activities such as:
- Cooking
- Cleaning
- Taking care of children and elderly
- Managing household work
These activities are essential for the well-being of the family, but they are often not recognised as economic activities because no salary is paid.
Many women also work in:
- Farms
- Factories
- Offices
- Shops
In rural areas, women often work in agricultural activities along with men.
Education and Employment Opportunities
The number of women employed in various sectors depends largely on their level of education and training.
Educated women have better employment opportunities. Over the years, there has been an increase in the participation of women in professional fields such as:
- Teaching
- Medicine
- Banking
- Administration
This shows that investment in education improves employment opportunities for both men and women.
Importance of Recognising Women’s Work
Although women contribute significantly to the economy, especially through household services, their work often remains undervalued.
Recognising and supporting women's contribution is important for:
- Gender equality
- Economic development
- Social progress
Improving education and providing equal employment opportunities can increase their participation in economic activities.
Quality of Population
Meaning of Quality of Population
The quality of population refers to the level of education, health and skill possessed by the people of a country.
It is not only the number of people that matters, but their ability to contribute productively to the economy. A population with better education, proper healthcare and useful skills is considered to have high quality.
Thus, the development of a country depends largely on the quality of its population.
Role of Education in Improving Quality
Education is one of the most important factors in determining the quality of population.
Education helps in:
- Developing knowledge and skills
- Increasing productivity
- Improving the ability to adopt new technology
- Enhancing employment opportunities
An educated person can contribute more effectively to the economy compared to an uneducated person.
The government plays an important role in providing education facilities through schools, colleges and training institutions. Efforts such as expanding elementary education and increasing literacy rates help in improving the overall quality of population.
Health and Quality of Population
Health is another major component of quality of population.
Healthy individuals are able to:
- Work efficiently
- Increase output
- Earn higher income
Poor health reduces productivity and affects economic development.
The government has introduced various health programmes to improve the health conditions of people. Public health services, hospitals and medical facilities are necessary to maintain a healthy workforce.
Improvement in life expectancy and reduction in infant mortality rate indicate better health conditions in a country.
Role of Skill Formation
Skill formation is also important in improving the quality of population.
Technical training and vocational education help individuals acquire specialised skills. Skilled workers are more productive and can earn better wages.
Thus, investment in skill development increases the efficiency of human resources.
Government Initiatives
The government has taken several steps to improve the quality of population, such as:
- Expanding educational facilities
- Implementing health programmes
- Providing mid-day meals in schools
- Encouraging technical and vocational education
Such measures help in developing human capital and improving productivity.
Importance of Improving Quality of Population
Improving the quality of population leads to:
- Higher productivity
- Increased national income
- Economic growth
- Better standard of living
Therefore, investment in education, health and skill development is essential for long-term development.
Unemployment
Meaning of Unemployment
Unemployment refers to a situation in which a person who is willing to work at the prevailing wage rate is unable to find work.
It is a serious economic problem because unemployed persons are unable to contribute to production and earn income. As a result, the country’s resources remain underutilised.
Unemployment indicates a waste of manpower resource.
Nature of Unemployment in India
In India, unemployment exists in both rural and urban areas.
In Rural Areas:
Unemployment is often hidden. Many people are engaged in agricultural activities, but not all of them are fully employed.
In Urban Areas:
Unemployment is generally seen among educated youth who are unable to find suitable jobs according to their qualifications.
Disguised Unemployment
Disguised unemployment is commonly found in rural areas, especially in agriculture.
It occurs when more people are engaged in a job than are actually required.
For example:
If five persons are working on a small piece of land but the work can be done efficiently by three persons, then the remaining two persons are disguisedly unemployed.
In such a case, even if two persons are removed, total production will not be affected.
Thus, disguised unemployment means that some workers appear to be employed, but their contribution to production is negligible.
Seasonal Unemployment
Seasonal unemployment occurs when people are employed only during certain seasons of the year.
It is common in agriculture, where work is available only during sowing and harvesting seasons.
For the remaining part of the year, workers remain unemployed.
Seasonal unemployment is also found in industries like sugar mills and brick-making, where work depends on seasons.
Educated Unemployment
Educated unemployment is mainly seen in urban areas.
It refers to a situation where people with educational qualifications are unable to find jobs suitable to their education level.
In recent years, the number of educated unemployed persons has increased due to:
- Rapid growth of population
- Limited job opportunities
- Mismatch between education and employment
Effects of Unemployment
Unemployment has several negative effects:
- Loss of income for individuals
- Increase in poverty
- Waste of human resources
- Social problems and frustration among youth
It slows down economic development because human capital remains underutilised.
Measures to Reduce Unemployment
To reduce unemployment, the following measures are important:
- Expansion of education and skill development
- Promotion of small-scale and cottage industries
- Development of rural infrastructure
- Encouragement of self-employment opportunities
Creating more employment opportunities helps in utilising human resources effectively.
Glossary
| Term | Meaning |
|---|---|
| Resource | Anything that can be used to produce goods and services. |
| People as Resource | The concept of treating population as an asset when they are educated, skilled and healthy. |
| Human Capital | The stock of skilled, educated and healthy people in a country who contribute to production. |
| Human Capital Formation | The process of improving the quality of people through education, training and healthcare. |
| Investment in Human Capital | Expenditure on education, health and skill development to increase future productivity. |
| Productivity | The ability to produce more output using available resources efficiently. |
| Economic Activities | Activities performed for the purpose of earning income or producing goods and services. |
| Market Activities | Activities performed for pay or profit and counted in national income. |
| Non-Market Activities | Activities not performed for pay, such as household work or production for self-consumption. |
| Quality of Population | The level of education, health and skills possessed by the people of a country. |
| Literacy Rate | The percentage of people who can read and write in a country. |
| Infant Mortality Rate | The number of children who die before reaching one year of age per 1,000 live births. |
| Life Expectancy | The average number of years a person is expected to live. |
| Skill Formation | The process of developing technical and vocational abilities in individuals. |
| Unemployment | A situation where a person who is willing to work at the prevailing wage rate cannot find work. |
| Disguised Unemployment | A situation where more people are engaged in work than required, and removal of some workers does not affect production. |
| Seasonal Unemployment | A type of unemployment where people get work only during certain seasons of the year. |
| Educated Unemployment | A situation where educated persons are unable to find suitable jobs. |
| Self-Employment | Working for oneself rather than being employed by someone else. |
| National Income | The total income earned by the people of a country during a given period. |
