PEOPLE AS RESOURCE - Q&A
1. What do you understand by 'people as a resource'?'People as a resource' is a way of referring to a country's working population in terms of their existing productive skills and abilities.
Explanation:
Just like land and capital are resources, the population is also a resource—a 'human resource'. When we look at people not just as mouths to feed, but as individuals who can contribute to the creation of the Gross National Product (GNP) through their skills and work, we see them as a resource. This perspective highlights their ability to contribute to the economy.
2. How is human resource different from other resources like land and physical capital?
Human resource is different because it is an active resource that can make use of other resources.
Explanation:
- Active vs. Passive: Land and physical capital (like machines) are passive resources; they cannot become useful on their own. They need humans to work on them.
- Superiority: Human resource is considered superior because it can make use of land and capital to produce goods and services. Without human effort, land and capital would remain idle.
3. What is the role of education in human capital formation?
Education plays a major role in human capital formation by adding to the productive power of the country.
Explanation:
1. Skill Development: Education provides individuals with new skills and knowledge, making them more efficient.
2. Better Opportunities: It opens up new horizons and helps people earn higher incomes, which improves their standard of living.
3. Social Growth: It contributes to the growth of society by creating a conscious and informed citizenry.
4. Economic Growth: An educated population contributes more to the National Income and enhances the efficiency of governance.
4. What is the role of health in human capital formation?
Health is indispensable for realizing one's well-being and is a vital component of human capital formation.
Explanation:
1. Productivity: A healthy person has more strength and energy to work, whereas an unhealthy person becomes a liability (burden) for an organization or country.
2. Potential Realization: Good health allows an individual to realize their full potential and fight illness.
3. Asset vs. Liability: Improvement in the health status of the population translates into a healthy workforce, which is an asset for the economy.
5. What part does health play in the individual's working life?
Health provides the physical and mental strength required to perform work efficiently.
Explanation:
- No firm or employer would want to hire someone who falls sick often and cannot work as much as a healthy person.
- A healthy individual can work for longer hours, is more focused, and is more productive. Therefore, health is the basis for maximizing an individual's output and earning capacity.
6. What are the various activities undertaken in the primary sector, secondary sector and tertiary sector?
The activities are classified as follows:
Primary Sector: Activities related to the extraction and use of natural resources.
Examples: Agriculture, forestry, animal husbandry, fishing, poultry farming, and mining.
Secondary Sector: Activities related to manufacturing and processing.
Examples: Manufacturing goods in factories or small workshops (e.g., textile weaving, car assembly).
Tertiary Sector: Activities that provide support services to the other two sectors.
Examples: Trade, transport, communication, banking, education, health, tourism, and insurance.
7. What is the difference between economic activities and non-economic activities?
The main difference lies in the purpose and the value added to the national income.
| Economic Activities | Non-Economic Activities |
|---|---|
| These are performed for pay or profit. | These are performed for self-consumption or out of love/duty, without payment. |
| They add value to the National Income. | They do not add to the National Income. |
| Example: A teacher teaching in a school; a farmer selling crops. | Example: A mother cooking for her family; a teacher teaching her own child. |
8. Why are women employed in low paid work?
Women are often employed in low-paid work due to lack of education and skill formation.
Explanation:
1. Education Gap: A majority of women in India have lower education levels compared to men.
2. Skill Deficiency: Due to lack of training, they are often considered unskilled labor.
3. Unorganized Sector: Many work in the unorganized sector where there is no job security, and legal protections (like minimum wages) are not followed strictly.
4. Social Factors: Traditionally, they are expected to manage household chores, which limits their ability to take up high-demand, full-time jobs.
9. How will you explain the term unemployment?
Unemployment is a situation where people who are willing to work at the going wages cannot find jobs.
Explanation:
It refers to the workforce (people aged 15 to 59 years) who want to work but are unable to find employment. If a person chooses not to work (like a student or a retired person), they are not counted as "unemployed".
10. What is the difference between disguised unemployment and seasonal unemployment?
Both are types of unemployment common in rural areas, but they differ in nature.
| Disguised Unemployment | Seasonal Unemployment |
|---|---|
| It happens when more people are working on a job than are actually required. | It happens when people are unable to find jobs during some months of the year. |
| Even if the extra people are removed, production does not decrease. (e.g., 8 people working on a farm that needs only 5). | People have work during busy seasons (sowing/harvesting) but sit idle during the off-season. |
| Common in: Agriculture (small family farms). | Common in: Agriculture (dependent on seasons). |
11. Why is educated unemployed, a peculiar problem of India?
Educated unemployment is a peculiar problem because there is a mismatch between the skills available and the jobs created.
Explanation:
1. Surplus Manpower: Many young people with matriculation, graduation, and post-graduation degrees are unable to find suitable jobs.
2. Paradox: On one hand, there is a surplus of manpower in certain categories (like general graduates), while on the other hand, there is a shortage of technical skills required for economic growth.
3. Wastage: This leads to the wastage of human resources, where educated youth feel depressed and become a liability instead of an asset.
12. In which field do you think India can build the maximum employment opportunity?
India can build maximum employment opportunities in the Tertiary (Service) Sector and the Secondary (Manufacturing) Sector.
Explanation:
- Agriculture (Primary): It is already overcrowded with disguised unemployment, so its capacity to absorb more workers is decreasing.
- Small-Scale Manufacturing: This sector is the most labour-absorbing within the secondary sector and can provide many jobs.
- Services (Tertiary): New services like Biotechnology, Information Technology (IT), and tourism are growing rapidly and have immense potential to create jobs for the educated youth.
13. Can you suggest some measures in the education system to mitigate the problem of the educated unemployed?
Measures to solve educated unemployment include:
1. Vocational Education: The education system should focus on vocational training (learning specific trades/skills) so students can find jobs immediately after school.
2. Skill Development: Emphasis should be on practical skills rather than just theoretical knowledge.
3. Career Counseling: Students should be guided to choose fields where there is a demand for workers.
4. Encouraging Entrepreneurship: Education should encourage students to start their own businesses (become job creators) rather than just looking for jobs (job seekers).
14. Can you imagine some village which initially had no job opportunities but later came up with many?
Yes, this is possible through human capital formation. (Example based on the story of Vilas and Sakal or the Village Story in the text):
Scenario:
Imagine a village where everyone was a farmer. There were no modern jobs.
1. Then, a family decided to send their son to study agriculture engineering.
2. He returned and designed a new plough that increased the wheat yield.
3. This created a surplus of wheat, which the village could sell.
4. With the extra money, families sent their children to learn other skills.
5. Soon, the village had a teacher, a tailor, a nurse, and an agro-engineer.
Result: A simple village transformed into a prosperous one with many diverse job opportunities.
15. Which capital would you consider the best — land, labour, physical capital and human capital? Why?
I would consider Human Capital as the best capital.
Reason:
Human capital is the only active factor of production. Land and physical capital (machines) cannot produce anything on their own; they need humans to operate them. Human capital (knowledge, skill, and health) can make use of other resources to generate value. Therefore, investing in humans (education/health) yields the highest return for society.