People as Resource


Part A: Multiple Choice Questions (30 with answers)


1. “People as resource” refers to:

a) Population as a liability

b) Population as an asset

c) Population as a problem

d) Population as unemployed

Answer: b) Population as an asset


2. Investment in education, training and medical care is called:

a) Human resource planning

b) Human capital formation

c) Economic planning

d) Population control

Answer: b) Human capital formation


3. Which revolution in India is an example of the role of knowledge in productivity?

a) White Revolution

b) Green Revolution

c) Industrial Revolution

d) Digital Revolution

Answer: b) Green Revolution


4. Which country became rich without natural resources by investing in human resource?

a) Japan

b) USA

c) India

d) Russia

Answer: a) Japan


5. Sakal’s success was due to:

a) Good health only

b) Education and training

c) Wealthy family

d) Migration

Answer: b) Education and training


6. Vilas’s poverty and ill health is an example of:

a) Virtuous cycle

b) Vicious cycle

c) Green Revolution

d) Technological growth

Answer: b) Vicious cycle


7. Which of the following is NOT a primary sector activity?

a) Agriculture

b) Mining

c) Forestry

d) Banking

Answer: d) Banking


8. Secondary sector includes:

a) Trade

b) Manufacturing

c) Transport

d) Communication

Answer: b) Manufacturing


9. Tertiary sector includes:

a) Poultry farming

b) Mining

c) Education

d) Forestry

Answer: c) Education


10. Market activities are performed for:

a) Self-consumption

b) Pay or profit

c) Leisure

d) Hobby

Answer: b) Pay or profit


11. Non-market activities mean:

a) Government jobs

b) Self-consumption activities

c) Private business

d) Banking activities

Answer: b) Self-consumption activities


12. Women are generally paid less because:

a) They lack skills and education

b) They refuse to work

c) They only work in cities

d) They are overqualified

Answer: a) They lack skills and education


13. Quality of population depends on:

a) Size of population

b) Life expectancy, literacy, skills

c) Migration rate

d) Caste system

Answer: b) Life expectancy, literacy, skills


14. Literacy rate in India in 1951 was:

a) 85%

b) 62%

c) 18%

d) 50%

Answer: c) 18%


15. Literacy rate in India in 2018 was about:

a) 50%

b) 70%

c) 85%

d) 100%

Answer: c) 85%


16. Mid-day meal scheme is related to:

a) Women empowerment

b) Child nutrition and education

c) Farming subsidies

d) Health insurance

Answer: b) Child nutrition and education


17. Gross Enrolment Ratio (GER) in higher education in 2020–21 was:

a) 10%

b) 27%

c) 50%

d) 85%

Answer: b) 27%


18. Health is important because it:

a) Increases literacy rate

b) Improves productivity and efficiency

c) Reduces unemployment

d) Provides migration opportunities

Answer: b) Improves productivity and efficiency


19. Infant Mortality Rate (IMR) in 1951 was:

a) 28

b) 67

c) 147

d) 200

Answer: c) 147


20. Infant Mortality Rate (IMR) in 2020 was reduced to:

a) 50

b) 28

c) 67

d) 10

Answer: b) 28


21. Seasonal unemployment is common in:

a) Industries

b) Agriculture

c) Government offices

d) Hospitals

Answer: b) Agriculture


22. Disguised unemployment means:

a) More people working than required

b) People not willing to work

c) Educated but jobless

d) Seasonal absence of work

Answer: a) More people working than required


23. Educated unemployment is mainly seen in:

a) Rural areas

b) Urban areas

c) Forest areas

d) Coastal areas

Answer: b) Urban areas


24. The most labour-absorbing sector of India is:

a) Industry

b) Agriculture

c) Services

d) Transport

Answer: b) Agriculture


25. New service sector opportunities include:

a) Agriculture

b) Biotechnology & IT

c) Mining

d) Forestry

Answer: b) Biotechnology & IT


26. The “virtuous cycle” in human resource development refers to:

a) Poverty cycle

b) Educated parents educating children

c) Seasonal unemployment

d) Migration

Answer: b) Educated parents educating children


27. The workforce population includes people aged:

a) 5–15 years

b) 15–59 years

c) 60–80 years

d) Above 80 years

Answer: b) 15–59 years


28. Unemployment leads to:

a) Prosperity

b) Economic overload

c) High income

d) Industrial growth

Answer: b) Economic overload


29. The best form of capital is:

a) Land

b) Physical capital

c) Human capital

d) Machinery

Answer: c) Human capital


30. The story of the village shows:

a) Migration

b) Human capital leading to prosperity

c) Industrial pollution

d) Agricultural decline

Answer: b) Human capital leading to prosperity


Part B: Very Short Answer Questions (20 with answers)

1. Define “people as resource.”

Ans: Viewing population as an asset with skills and abilities contributing to production.

2. What is human capital formation?

Ans: Investment in people through education, health, and training.

3. Give an example of human capital in India.

Ans: IT revolution.

4. Name the two case studies mentioned.

Ans: Sakal and Vilas.

5. What is the primary sector?

Ans: Activities like agriculture, forestry, fishing, mining.

6. Give one example of secondary sector activity.

Ans: Manufacturing.

7. Give one example of tertiary sector activity.

Ans: Banking or education.

8. What are market activities?

Ans: Activities performed for pay or profit.

9. What are non-market activities?

Ans: Activities for self-consumption.

10. Mention two determinants of quality of population.

Ans: Literacy and health.

11. Literacy rate in 2018 was?

Ans: 85%.

12. What was IMR in 1951?

Ans: 147.

13. What is seasonal unemployment?

Ans: When people are jobless during certain months of the year.

14. What is disguised unemployment?

Ans: More workers employed than required in agriculture.

15. What is educated unemployment?

Ans: Joblessness among educated youth.

16. Which sector absorbs the most labour?

Ans: Agriculture.

17. Mention one scheme to improve school attendance.

Ans: Mid-day meal scheme.

18. What is the workforce population age group?

Ans: 15–59 years.

19. Which capital is best and why?

Ans: Human capital, because it makes other resources useful.

20. What does a virtuous cycle mean?

Ans: Educated and healthy parents invest in their children’s education and health.


Part C: Short Answer Questions (15 with answers)

1. How does investment in education benefit individuals and society?

Ans: It increases productivity, income, skills, values, and improves governance.

2. Distinguish between market and non-market activities.

Ans: Market = done for pay/profit (e.g., teaching); Non-market = self-consumption (e.g., cooking at home).

3. How is human resource superior to other resources?

Ans: Because it makes land and capital productive.

4. State the difference between Vilas and Sakal.

Ans: Sakal was educated and healthy, became productive; Vilas was uneducated, ill, remained poor.

5. What is the role of health in human capital formation?

Ans: Health improves efficiency, productivity, and reduces absenteeism.

6. What are the three sectors of economic activities?

Ans: Primary, secondary, tertiary.

7. Why are women employed in low-paid work?

Ans: Lack of education, skill formation, and social discrimination.

8. Why is education considered an input for growth?

Ans: It develops skills, values, aspirations and increases productivity.

9. What are the effects of unemployment?

Ans: Wastage of manpower, poverty, economic overload, social unrest.

10. Explain the term ‘disguised unemployment.’

Ans: Extra workers employed without adding productivity, common in agriculture.

11. Why is educated unemployment a peculiar problem in India?

Ans: Many graduates lack employable skills while technical jobs remain vacant.

12. Mention two achievements of India in literacy.

Ans: Literacy rate rose from 18% (1951) to 85% (2018); expansion of schools.

13. What is infant mortality rate?

Ans: Number of children dying below one year per 1000 live births.

14. Give one reason why health facilities are still inadequate in India.

Ans: Unequal distribution and shortage of medical colleges/doctors.

15. Why is human capital the best capital?

Ans: Because it utilizes land, labour, and physical capital efficiently.


Part D: Long Questions and Answers

1. Why is population considered a resource and not a liability?
Answer: Population is considered a resource when people are educated, healthy, and skilled. An educated workforce increases productivity in industries, services, and agriculture. Skilled people innovate and help in economic growth. Healthy people contribute actively to development. If people are uneducated and unhealthy, they can become a burden. Hence, investment in human capital makes population an asset rather than a liability.

2. Explain the concept of human capital formation.
Answer: Human capital formation refers to the process of improving the quality of people through education, training, and healthcare. Like physical capital, human beings also need investment to enhance their productivity. Education increases knowledge and skills, while healthcare ensures a fit workforce. Training sharpens specific abilities required in industries. With better human capital, the economy grows faster. Thus, human development is the base of progress.

3. How does education contribute to the economic growth of a country?
Answer: Education enhances people’s skills and knowledge, which increases efficiency and productivity. It provides better job opportunities and higher income. Educated people can adapt to new technologies more easily. They can also contribute to scientific research and innovation. Education promotes social development, reduces poverty, and improves decision-making. Hence, education is both an economic and social investment.

4. Discuss the role of health in human capital formation.
Answer: Health is as important as education in building human capital. A healthy worker is more energetic, regular, and productive. Good health reduces absenteeism in workplaces. It increases life expectancy, which means a longer working life. A healthier population contributes to better economic output. Therefore, investment in healthcare services, nutrition, and sanitation is essential for development.

5. What is the difference between human capital and physical capital?
Answer: Human capital refers to people’s skills, education, and health, while physical capital refers to tools, machines, buildings, and money. Human capital uses physical capital efficiently. For example, a machine cannot produce without a skilled operator. Unlike physical capital, human capital cannot be separated from its owner. Both are essential, but human capital is considered more valuable in today’s knowledge-based economies.

6. Explain how people as a resource is different from people as a liability.
Answer: People are a resource when they are educated, skilled, and healthy, contributing positively to economic growth. On the other hand, uneducated, unskilled, and unhealthy people cannot participate productively and may depend on others. For example, Japan, despite scarce natural resources, prospered by investing in its people. In contrast, countries with large populations but poor human capital struggle with poverty. Hence, whether people are a resource or liability depends on investment in them.

7. What is the role of women in economic development?
Answer: Women play a crucial role in households, agriculture, industries, and services. However, their contribution often remains undervalued due to social barriers. If women are educated and skilled, they can increase household income and overall productivity. Examples from many countries show that empowering women boosts development. Equal participation of women also ensures balanced growth. Therefore, women’s role is vital in making people a true resource.

8. Why is investment in education called a human capital investment?
Answer: Investment in education is called human capital investment because it enhances knowledge, skills, and earning capacity. Educated people are more productive and can take up specialized jobs. It reduces poverty by providing employment opportunities. Education also spreads awareness about health, hygiene, and civic duties. Like investment in machines, investment in education yields long-term benefits. Thus, it is rightly considered an investment in human capital.

9. Explain the role of unemployment in under-utilisation of human resources.
Answer: Unemployment means people willing to work are not getting jobs. It leads to wastage of human potential. In rural areas, disguised unemployment in agriculture reduces efficiency. In urban areas, educated unemployment is common, where educated youth remain jobless. This under-utilisation hampers economic growth. Providing jobs through skill training and industries can make human resources productive.

10. What is the role of primary, secondary, and tertiary sectors in employment?
Answer: The primary sector (agriculture) employs most of the rural population, though often with disguised unemployment. The secondary sector (manufacturing) provides jobs in factories and industries. The tertiary sector (services) includes banking, education, healthcare, transport, and IT. With development, the tertiary sector grows faster and provides more employment. A balanced growth of all three sectors ensures full use of human resources.

11. Explain how employment generation can make people an asset.
Answer: Employment provides income and dignity to individuals. It reduces poverty and increases purchasing power, which boosts demand in the economy. Skilled employment also leads to innovation and productivity growth. Self-employment, like farming and small businesses, helps in rural development. Government programmes like MNREGA provide work to rural households. Thus, generating employment ensures that people contribute positively as assets.

12. Why is disguised unemployment considered harmful?
Answer: Disguised unemployment occurs when more people are working in a job than required. It reduces efficiency since the extra workers add no productivity. This is common in agriculture where many family members work on small plots of land. Their labour remains under-utilised. If some workers move to other jobs, total output does not fall. Thus, disguised unemployment shows wastage of human resource.

13. How does investment in health create human capital?
Answer: Investment in health ensures people are physically fit and mentally alert. Healthy people can work harder and longer. It reduces the burden of diseases and healthcare costs. Nutrition and sanitation improve children’s development and learning ability. A healthy population has higher productivity and life expectancy. Therefore, health investment creates valuable human capital.

14. Explain the relationship between human capital and economic growth.
Answer: Human capital is the backbone of economic growth. Skilled and educated people increase production and income levels. Healthier people ensure regular and efficient work. Countries like Japan grew rapidly despite limited natural resources due to strong human capital. On the other hand, countries with poor education and health struggle with poverty. Hence, strong human capital leads to sustainable development.

15. Why is education considered a key input for human development?
Answer: Education provides knowledge and skills required for employment. It empowers people to make informed choices in life. It helps in reducing poverty, controlling population growth, and improving health. Education also promotes gender equality and social awareness. It prepares individuals for better job opportunities and innovation. Therefore, education is the foundation of human development.

16. How do educated parents contribute to human capital formation?
Answer: Educated parents understand the value of education and send their children to school. They invest in the health and nutrition of their family. They provide a learning environment at home, which helps in personality development. Educated parents also encourage skill development and career growth. This cycle of education ensures better human capital for the next generation.

17. What are the differences between market activities and non-market activities?
Answer: Market activities involve production of goods and services for pay or profit, like factory work or shopkeeping. Non-market activities are unpaid services like household work done by women. Market activities contribute directly to national income. Non-market activities, though valuable, are not counted in GDP. Recognising women’s household work can improve social awareness. Thus, both are important but only market activities are monetised.

18. Why is educated unemployment a serious problem in India?
Answer: Educated unemployment occurs when educated people cannot find jobs matching their skills. In India, many graduates and postgraduates remain jobless due to limited job opportunities. It leads to frustration and wastage of talent. Families spend heavily on education but fail to get returns. This reduces economic productivity. Educated unemployment highlights the need for skill-based training and employment generation.

19. How do women’s contributions remain under-recognised in India?
Answer: Women in rural areas work in fields, collect fuel, fetch water, and manage livestock. In urban areas, they manage households and care for children. Yet, their work is considered non-market activity and is not counted in GDP. This undervalues their role in the economy. Educated and employed women contribute both at home and in the workplace. Recognising women’s work can change social attitudes and improve equality.

20. How did Japan become a developed country despite poor natural resources?
Answer: Japan has very limited natural resources but invested heavily in human capital. It focused on education, technical skills, and healthcare. Japanese workers are highly skilled and disciplined. The country developed strong industries, technology, and global trade. Innovation and research boosted its economy. This example shows that human resources are more important than natural resources for development.