th

Class 9
Social Science
Economics |People as Resource
 Economics |People as Resource
People as Resource

Human Capital Leads to Economic Growth

Economic Activities Perform

Quality of Population Unemployment
by Men and Women

● Primary ● Health
● Secondary ● Education
● Tertiary
 Economics |Development

What is "investment in human capital"?

A. Buying things like cars and buildings

B. Spending money on education, training, and health care to make people smarter and healthier

C. Investing in machines and factories

D. Giving people more money to spend

 Economics |People as Resource
Overview People as Resource ?? ‘Human Resources’
Population, when invested in through Education, training and health care, transform into
human Capital, which contribute significantly to the Economy, much like Physical Capital.

Human Resource as an Asset → GNP

Impact of Human Capital → Green Revolution & IT Revolutions
Case studies of Sakal & Vilas
The cycle of Human Capital formation → Virtuous cycle V/S Vicious cycle

Economic Activities By Men And Women

Three Main sectors Market vs Non-Market Activities

Primary (Agriculture / Fishing / Mining) Market - profit
Secondary (Manufacturing) Non-market - self consumption
Tertiary (Trade / Education / Health)

Gender Division of Labour Women's Employment

Men - Paid work, Earns money for the family (Insecure job, Paid lower than
Women - Domestic Activities ( Exception*) men, Poor legal protection)
(Role of Education )
 Economics |People as Resource
Quality of Population Factors - Literacy rates, life expectancy & skill formation.

Education Health
• Maximizing Productivity
Importance Government Challenges Importance • Reduce Infant Mortality
• Enhanced Individual opportunities • Navodaya Vidyalaya, • Poor schooling quality • Increased Life Expectancy
• Contributes to National Income vocational Streams • High Dropout rates
• Social Development • Sarva Shiksha Abhiyan • Disparity in literacy rates • Regional disparity in availability
Challenges • Infrastructure
• Mid-day meal schemes
Unemployment
Unemployment exists when people willing to work but not able to find the work
Seasonal Unemployment (when the employment is available only for a particular season )
Types Disguised Unemployment (when more people work than the actual number of people needed)
Educated Unemployment (when even graduates & post graduates struggle to find suitable jobs)

➢ Wastage of Human Resources Migration and employment in other sectors

➢ Increase economic overload (Primary,Secondary & Tertiary sector)
Impact
➢ Poverty
➢ Decline in health and education
➢ Social issues - Hopelessness, feeling of despair
 Economics |Development

Which of the following types of unemployment happens in rural areas where people don't find
much work during certain months of the year?

A. Educated unemployment

B. Disguised unemployment

C. Seasonal unemployment

D. Full-time unemployment
 Economics |Development

Japan get developed by

A. Investing in human capital

B. Borrowing money from World Bank

C. Developing agriculture sector

D. Improving infrastructure
 Economics |People as Resource
Key Words

People as a Resource : "People as a Resource’ Market Activities : Economic activities are also known as
means thinking of the people in a country as market activities. These activities are done for earning
important because of the skills and abilities money or profit. They include making goods or providing
they have to work and help the country grow. services, and this includes even jobs in the government.
Just like other resources, people are also a
valuable resource, called human resources."
Sarva Shiksha Abhiyan : "‘Sarva Shiksha Abhiyan’ is a big plan
to make sure all children between six and fourteen years old
'Human Capital Formation' : When people get
get a basic education. The government, along with local
more education, training, and healthcare, they
communities, worked together to achieve this goal.
become healthier and smarter. This helps them
do their jobs better and makes the country
stronger. This is called "human capital." Unemployment: "Unemployment happens when people who
want to work and are ready to work at normal pay can't find a
job. The working group includes people between 15 and 59
GDP: GDP is the total value of all the things a
years old. If someone is younger than 15 or older than 59 and
country makes, like food, toys, or cars, and the
doesn't have a job, they are not considered unemployed.
services it provides, like teaching or healthcare. It
shows how much money a country is making in
one year. A higher GDP means the country is Infant Mortality Rate: Infant mortality rate (IMR) is a
doing better. measure of how many babies die before they reach their first
birthday, out of every 1,000 babies born in a certain year.
 Economics |People as Resource
Key Words

Virtuous Cycle: Educated parents spend money and Disguised Unemployment : In case of disguised
effort to make sure their children get good education unemployment, people appear to be employed, but are
and skills. The children understand how important actually not employed. It is mostly found in agriculture.
education is and do well in school. This helps the
family get better jobs and succeed, and the cycle
continues with the next generation.
Seasonal Unemployment : Seasonal unemployment happens
when people are not able to find jobs during some months of
Vicious Cycle: Uneducated parents don't see the the year.It is mostly found in agro based industries and found
importance of education, so they don't spend on their both in rural areas as well as in urban areas.
children's schooling.The children grow up without good
education or skills. This makes it harder for them to get
good jobs, and the cycle keeps repeating.
Birth Rate : is the number of babies born for every 1,000
people during a particular period of time.
Literacy Rate: Literacy rate is a measure of how many
people can read and write in a particular area, usually a
country or region. It is shown as a percentage. If a
country has a high literacy rate, it means most people Death rate : is the number of people per 1,000 who die during
there can read and write. a particular period of time.
 Economics |People as Resource

Why are people of a country referred as resource?

● "People as Resource" means looking at the skills and abilities of workers in a country.
● These workers help the country create goods and services, which contribute to the country's wealth.
● Just like natural resources (like water or land), people are also a valuable resource called "human
resources."
 Economics |People as Resource

How is human resource different from other resources like land and physical capital?

● Unlike land or other resources, which are limited, people can improve through education and health.

● People can use and improve other resources, but other resources can't change or impact people.

● People can make land and capital useful. On their own, land and capital can't do anything without
people to use them.
 Economics |People as Resource

What does quality of population imply?

● How good a country's people are depends on how many can read and write, how healthy they are,
how long they live, and the skills they have learned.

● The better the people, the faster the country can grow.

● If people are healthy and can read and write, they help the country. If they are sick or can't read, they
make it harder for the country to grow.
 Economics |People as Resource

What is the role of education in human capital formation?

● Investment in education of human resource results in the formation of human capital.

● One can earn higher income because of higher productivity of the more educated or better trained
persons, thus contributing towards human capital formation.

● Investment in human resource via education and medical care can give higher rates of return in the
future.
 Economics |People as Resource

What is the role of health in human capital formation?

● Health sector development can prove useful for the economy.

● Healthier the people, the more they work, and the more they produce and earn.

● As it is said, 'Health is Wealth'; a healthy person's capacity to work increases and he becomes more
productive and hence, earns more.
 Economics |People as Resource

Explain any five effects of unemployment in India.

(i) Loss of human resources: When people are unemployed, they spend a lot of time looking for a job instead of
using their skills to help the country.

(ii) Increase in poverty: When people don’t have jobs, they don’t earn money. Without money, they become poor.

(iii) Social problems: Unemployment can lead to bad things like lying, stealing, or cheating because people are
unhappy and struggling.

(iv) Political instability: When many people can’t find jobs, they may lose trust in the government and may
become angry, which can cause problems in the country.

(v) Exploitation of labour: Unemployed people who do get jobs might be treated badly, working in tough
conditions and getting paid very little.
 Economics |People as Resource

How can investment be made in human capital?

Classify various activities on the basis of its economic benefit?

How does investment in human capital yield a return just like investment in physical capital?

Explain the term 'unemployment' in the context of India