Class 9 SST Economics Chapter 2 People as Resource

The chapter “People as a Resource” in Class 9 Economics explains how people are an important asset for a country. It shows how education, skills, and health make the population productive and contribute to economic growth.

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Class 9 Economics Chapter 2 Notes

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What is meant by People as a Resource?

It’s the idea that people aren’t just consumers of goods and services - they can also be productive assets for the country. But there’s a catch: people only become a real resource when they are skilled, trained and healthy.

Think of it like this: just like land, machines and money are resources that help the economy, humans can also be productive resources. When people have the right skills and good health, they can actively contribute to economic growth instead of just being a number.

Economic Activities 

Economic activities are the activities people do to earn a living. Based on the type of work people do, economic activities are divided into three main sectors.

1. Primary Sector

The primary sector includes activities that are directly related to natural resources.

• Activities like farming, fishing, mining and forestry
• These activities depend on land, water, forests and minerals
• Many developing and underdeveloped countries depend heavily on this sector
• Examples include countries like Namibia and Liberia

2. Secondary Sector

The secondary sector deals with manufacturing and production.

• Raw materials are converted into finished or semi-finished goods
• Examples include: Making clothes from cotton or silk, factory work and construction activities
• This sector adds value to raw materials and supports economic growth

3. Tertiary Sector

The tertiary sector provides services that support people and other sectors.

• Includes services like teachers, doctors, drivers, transport, banking and communication
• Helps both the primary and secondary sectors function smoothly
• In India, the tertiary sector contributes a large share to national income

What is Human capital?

Human capital means people who have useful skills, abilities and good health. When people are educated, trained and healthy, they can actively take part in the production of goods and services and help the economy grow.

That’s why investing in people is so important. Governments and companies spend money on education, healthcare and training because skilled and healthy people work better, earn more and contribute more to the country.

Human capital plays a key role in a country’s development.

• More human capital → higher productivity
• Higher productivity → higher individual income
• Higher income → better standard of living and economic growth

When human capital is used properly, the population adds value to the economy instead of becoming a burden.

Example: Japan

Japan is a classic example of strong human capital.

• Japan has very limited natural resources
• The government invested heavily in education, health, skills and training
• As a result, people became highly productive

Because of this focus on human capital, Japan successfully became a developed country, proving that people are the real strength of an economy.

Education and Human capital 

Education is one of the most important ways to build human capital. When people get educated, they become more skilled, efficient and capable of earning better. This helps both the individual and the economy of the country.

Why education is important:

• Improves skills and efficiency of individuals
• Increases chances of getting a good job
• Helps people earn higher income
• Reduces poverty and improves standard of living

Education also supports economic and social development of a country. Nations with a well-educated population grow faster.

Examples:

• Countries like Japan, South Korea and China focused on education
• Educated people in these countries contribute strongly to economic growth

Government initiatives in India:

• Sarva Shiksha Abhiyan - promotes universal education
• Mid-Day Meal Scheme - encourages school attendance and reduces dropouts

Health and Human capital 

Health is an important part of human capital. A healthy person can work better, stay active for longer hours and earn a higher income. This directly helps both the individual and the economy.

Why health is important:

• Good health increases productivity and efficiency
• Healthy people have better earning capacity
• Poor health reduces work capacity and slows production
• Ill health lowers income and quality of life

A country with a healthy population grows faster because people are able to contribute positively to economic development.

Government role in improving health:

• Investment in healthcare services
• Focus on sanitation and cleanliness
• Disease prevention programs to keep people healthy

All these steps help in building strong human capital and ensuring long-term economic growth.

Women and Human Capital

Women play a vital role in building human capital and their participation in education and work strengthens economic growth.

1. In traditional Indian society, women going out to work was often considered a taboo in many families.
2. Women face discrimination, inequality in wages and limited opportunities at workplaces.
3. In some cases, women also face sexual harassment at the workplace.
4. Many women are engaged in unpaid household work, which reduces their economic independence.
5. With increasing levels of education, more women are now joining the workforce without restrictions.
6. The Government of India has launched several schemes to promote women empowerment and independence.
7. Increased education has helped improve gender equality in society.
8. Greater participation of women in economic activities helps the economy grow faster and more effectively.

Unemployment in India 

There are three types of unemployment conditions in India are as follows:

• Disguised Unemployment - In this type of unemployment more people are working than needed in a certain work Example- farming and mining.
• Seasonal unemployment - In this type, work is not available for people for a certain season. This reduces the chance of increasing the economy of the country. Example - In farming after all crops farmers have to wait an entire season for growing crops.‍
• Urban unemployment - Educated youth with no skills in urban areas are the biggest problem of the economy. Their skills are not matched in the industry so they are not able to get a good job.

Steps Taken by Government to Increase Productivity 

The government promotes productivity by improving education, skills and health of the workforce.

• Investments in education, skill training and healthcare enhance the efficiency and productivity of workers.
• Schemes like Skill India, Ayushman Bharat, Beti Bachao Beti Padhao and Mid-Day Meal directly contribute to improving education, health and skill development in society.
• These initiatives ensure a skilled, healthy and capable workforce, which boosts overall economic growth.

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FAQs

Q1. What is human capital?

Ans. Human capital refers to the skills, knowledge, health and abilities of individuals that contribute to their productivity and the overall economic growth of a country.

Q2. How does education improve human capital?

Ans. Education enhances skills, talent and efficiency, increases income-earning potential, reduces poverty and promotes social and economic development.

Q3. Why is health important for human capital?

Ans. Good health increases productivity and work capacity, while poor health reduces efficiency and income-earning opportunities, acting as a barrier to economic growth.

Q4. How does women’s participation affect human capital?

Ans. Educated and empowered women joining the workforce improve gender equality, contribute to economic growth and strengthen the overall human capital of the country.

Q5. What steps has the government taken to improve human capital?

Ans. The government promotes productivity through schemes like Skill India, Ayushman Bharat, Beti Bachao Beti Padhao and Mid-Day Meal, along with investments in education, skill training and healthcare.