CBSE Class 9 Economics Chapter 2 - People as Resource Revision Notes (Free PDF Download)

1. People as assets is a completely unique manner of searching on the financial value of the population. The capacity of humans to engage in activities that produce goods or deliver services makes them beneficial contributors of the economy. They make a contribution to economic growth. It appears at the role of education and health in determining the quality of the population. It additionally looks at specific economic activities and attempts to understand the difficulty of unemployment. This chapter explores the idea of human capital and how investments in human capital can make contributions to the economy. 

2. Population as Asset

i. Resources are assets that may be utilized in producing goods and services which make contributions to enhancing the standard of living of people.

ii. When we are saying humans are resources we imply the abilities and skills withinside the population that may make contributions towards production.

iii. A large population may be detrimental, as we need more resources like food, fitness centers to help them. However, looking at this positively, a healthy and exceptionally educated population can turn out to be an asset as they could spend more time doing productive work. A country with engineers can produce technology solutions to problems in comparison to a country with only farmers.

iv. The population is an asset just like the capital and is referred to as human capital. Like funding in physical capital, human capital investments are also possible. Investment in human capital can offer a greater return. Moreover, human capital may be used alone (eg: instructor or musician), in contrast to physical capital.

v. Education, better healthcare centers, job training are some ways through which human capital investment is possible. An incredibly educated man or woman can take up high paying jobs, a nicely-skilled employee may be more productive and healthier workers can work for longer.

vi. Investment in human capital benefits each man or woman and society. Individuals could have higher earnings and better health. Society will gain from more productive and excellent workers.

vii. In the instance withinside the textbook, we see how boys from the village of identical age and situations turn out to be in different places withinside the future. One boy had to access education and healthcare and turned out to be a software program developer and was given a very good job. Another boy who did not access both medicine and did not acquire very good schooling, he continues to remain the same.

viii. Investment in education and training makes a person skilled. The quality of work of a man or woman increases, improving the entire productivity. Higher productivity of a person contributes to the increase in the economy. 

ix. Not making an investment in humans causes them to be unskilled, and thereby they have low productivity. They retain low wages.

3. Virtuous and Vicious Cycles of Human Capital Investment:

i. Well educated parents realize the value of education, proper health, etc. They offer their kids with these investments and allow them to earn high. This cycle is a virtuous cycle.

ii. A vicious cycle is when poor parents are not able to invest in their children’s schooling and health adequately. This can be both because of lack of resources or being unaware of the advantages. The children also have low capabilities and earn low.

4. Economic Activities

i. Economic activities are the ones that add value to the nation’s income. They produce a new well and offer a service.

ii. These activities are divided into:-

a. Primary sector: It includes activities like agriculture, poultry, farming etc.

b. Secondary Sector: It includes manufacturing and industries.

c. Tertiary sector: It includes activities like transport, servicing, banking etc.

iii. All economic activities are precious due to the fact they make contributions to countrywide earnings. However, society might not offer earnings to individuals. Activities which give income or remuneration to people who perform them are known as Market activities. Income may be withinside the form of pay (salary/wages) or profit. Government services, production of goods for sale, and services performed for pay. Non-market activities do not provide the individual an income, they are done for self-consumption. For instance, A person building a house (fixed asset) for themself, a farmer growing crops to feed their family.

iv. The non-market activities done by women are not paid, hence not included in national income. Moreover if this activity, like cooking, is performed for payment then it can be included.

v. Education and skills of a person determine how he can earn, as skilled people can perform better work than a person without any skills. Women generally have low skills and little education due to which are paid low wages.

5. Education

i. Education is an investment for an individual, which opens new possibilities and adds values.

ii. In society, it provides better productivity and national income, cultural vibrancy and government efficiency.

iii. Some focus points:

a. Girl education must be considered.

b. Navodaya Vidyalayas and government schools should provide free education

c. Skill training should be given through vocational education.

iv. Government expenditure on education is still at 3%.

v. Literacy rates act as an  indicator of education. In 1951 from 18%  74% in 2010, it was increased.

vi. Literacy rates are different over different groups of the population. Male literacy rate is 16.6% more than the female literacy rate.

vii. India has about 8.41 lakh primary schools.

viii. Central government has initiated Sarva Siksha Abhiyan which aims to provide elementary education to children between the ages of 6 to 14.

ix. Mid-day meal schemes have however been able to increase students and provide adequate nutrients to students at the same time.

6. Health

The focus points of Health policy in India are:

a. The welfare of the Family.

b. Accessibility to the health care

c. Nutrition to every individual

d. Building good health infrastructure

7. Unemployment

i. When an individual is willing to go to work but is unable to find any work is known as unemployment.

ii. Different types of unemployment:

a. Urban unemployment: Mainly educational unemployment is popular in urban areas. Youngsters with good educational qualifications are unable to find a job matching their qualifications. 

b. Rural unemployment: It can be either seasonal or disguised.

c. Disguised unemployment: In this, people might appear to have work, but more people do the same work than it is actually required. 

d. Seasonal unemployment: People remain unemployed for a few months or in a particular season. This is quite common in agriculture where activities take place once for a few months in a year.

Class 9 Economics Chapter 2 Notes PDF

People as a Resource Class 9 Notes gives students a brief about investment capital. The chapter refers to India’s working people and population in general and this is described in terms of their existing productive abilities and skills. The population is also considered as a human resource just like the other resources. A capital formation is referred to when an existing human resource is developed further through a healthy formation and education. The investment in human capital occurs through medical care, education, and training to yield a return that is not something just like an investment but in physical capital. Human capital is superior to other resources like physical capital, and the total productivity is an addition to the economic growth. An investment in human resources via medical care or education can leverage people with a high rate of returns in the future in countries like Japan, which have already invested in human resources. 

Economic Activities 

Economic activities are divided into three different sectors- the primary, the secondary, and the tertiary sector.

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Economic Activities in India

The primary sector is an economic activity that is inclusive of animal husbandry, agriculture, poultry farming, quarrying, forestry, fishing, and mining. The secondary sector is an economic activity that comes inclusive of manufacturing. Finally, the tertiary sector is an economic activity that comes inclusive of transport, education, trade, insurance, banking, services, education, tourism, communication, health, and more. All three sectors combine to be termed as an economic activity. 

Economic activities comprise two sections- Non-market activities and Market activities. Non-market activities refer to the production of self-consumption that leads to the processing and consumption of primary products, and this process leads to the own-account production of fixed assets. Market activities refer to the involvement of remuneration through the performance of any individual such as the activity performed for pay or profit such as services or goods, including government services. 

Quality of Population

The quality of a population depends on certain factors such as the health of a person and the literacy rate that is indicated by skill formation and life expectancy that are often acquired by the people of the country. The quality of the population is an ultimatum as it decides certain factors such as the growth rate of the country and also maintains the healthy and literate population is an asset. 

Health also plays an important role that determines the Quality of the Population. This factor has been the utmost priority of the country as it improves the health status of the population. The National Policy also aims at improving the accessibility of family welfare, nutritional service, and healthcare, especially for the underprivileged and the deprived section of the population. India has spent over five decades to develop its workforce in the field of primary, secondary, and tertiary sector of the population. 

Unemployment

People as Resource Notes also talks about unemployment. India suffers from unemployment in both rural and urban sections of the country even though the nature of the unemployment differs from the urban to the rural areas of the section. However, in rural areas, unemployment remains disguised and seasonal while in the urban section of the society, unemployment was educated unemployment.

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Unemployment

Seasonal unemployment occurs when people are unable to find a career or employment for the first few specific months of the year. In disguised unemployment, individuals appear to be portrayed as unemployed. 

Educated unemployment became a standard and common phenomenon in urban areas. At the same time, unemployment also leads to wastage of workforce resources, has a detrimental impact on the overall growth of an economy, and tends to increase economic overload.

This was the complete discussion on the People as Resource Class 9 Notes CBSE Economics Chapter 2. The population is analysed in Class 9 Economics Chapter 2 Notes PDF as an asset rather than a burden for the economy. Students will learn how the population becomes human resource if capital is invested in healthcare, schooling, and training facilities.

The chapter also describes how human capital is the store of useful intelligence and experience that is represented in people. Students are given all the key ideas in the People as Resource Class 9 Notes in an easy-to-understand format. These ideas are specifically created to assist pupils in achieving exceptional results. Download the Vedantu Revision notes PDF to be ready for your examinations.