NCERT Solutions for Class 9 Economics Chapter 2 - People as Resource

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Solution 1

Chapter 2 - People as Resource Exercise 27

Solution 1
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.    

Solution 2
If disguised unemployment characterises rural India, educated unemployment is a peculiar problem of urban India. This is the situation wherein a number of youth with matriculation, graduation and post graduation degrees are not able to find suitable jobs. The education system is such that even after about 18 years of education, a person can well be termed as unskilled. What this does is that a large number of unskilled educated youth get churned out of educational institutions year after year, but only a fraction of them are able to find suitable jobs. Among the remaining, some remain unemployed while others get employed in activities that seem inadequate as per their potential. This in turn leads to the wastage of the huge amounts of resources that had been spent on educating them.

Solution 3
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.
Solution 4
Measures in the education system to mitigate the problem of the educated unemployed:

(a) Make education at the secondary level more career-oriented, which would endow individuals with not only education but also the requisite skills for gaining successful employment.

(b) Create a sort of screening process whereby each individual chooses subjects that suit his or her abilities.

(c) The introduction of newer subjects and fields of study at the school level should be accompanied by a growth of job opportunities in the sectors that would employ the students electing to study such subjects.

Solution 5

Human capital makes use of the other resources like land, labour and physical capital to produce an output. The other resources cannot become useful on their own. Hence, human capital may well be considered the best among all the resources.

Solution 6
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.  
Solution 7
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. 
Solution 8
Human capital refers to the stock of skill and productive knowledge embodied in a population. This skill and productive knowledge is provided with the help of proper education and training. However, the benefits of education alone do not lead to the creation of human capital. A human population which is educated but unhealthy cannot realise its potential. An unhealthy population is a liability, and not an asset. Hence, health is an indispensable basis for realising one's well being.

Solution 9

The health of an individual helps him to realise his potential and also gives him the ability to fight illness. An unhealthy individual is a liability to his place of work. The health of a person is directly related to his efficiency. As compared to an unhealthy individual, a healthy person can work more efficiently and with greater productivity.

Solution 10

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.

Solution 11
Activities that add value to the national income are called economic activities. These have two parts ? market activities (production for pay or profit) and non-market activities (production for self consumption).

Non-economic activities are the ones that do not add to the national income; for example, an individual performing domestic chores.

Solution 12
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.  
Solution 13

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. 

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