Solutions of NCERT Economics Textbook Exercise Questions | CBSE Class 9, People as Resource | Chapter 2, Understanding Economics


Class 9, Understanding Economics
Solutions of Ncert (Cbse) 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 country’s 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 individual’s 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 individual’s 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 individual’s working life?
Solution: Refer to answer of Q.No.4 above.

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. 

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. 
Further Study
Cbse Ncert Sample Questions for Class 9 Economics (Social Science) - People as Resource (READ) 

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  6. I do not agree with answer 8(point 3 and 4).. it is not true. It depends on the person. It is not a fact!