NCERT Class 9 Economics Chapter 2: People As Resource Complete Notes Part 2

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People as Resources

  • Human resource can make use of land and capital

  • Land and capital cannot become useful on its own

  • Education adds to quality of labour – Increases productivity & growth of economy

  • Child with investment can lead to higher earning & greater contribution to society

  • Uneducated people create a vicious cycle of disadvantaged state

  • Japan – with no natural resource, only human resource - developed

Now definitely we can say human resources is the one who can use the land as well as the capital and all the natural resources that are available. However it’s interesting that land and capital cannot become useful on its own. That means ideas from human beings, the skills, the innovation, their technologies, the researches that you put in are very important to make an optimal and an efficient utilization of the given resources. I can say human beings can definitely make use of land and capital but this land and capital cannot become useful on its own.

Now what can add to the quality of human as we said is education? Education would definitely improve the quality of labor once there is increased quality of labor, it would increase the productivity, it would increase the economic growth and as I said cycle goes on. There are many person who might argue, why investing in a children’s education would be beneficial? A simple answer would be child with investment in the education can lead to higher earning and greater contribution to the society in future. As a result it ultimately affects the economics of the nation. However on the other hand, if there is an uneducated people, they would create a vicious cycle of disadvantaged state.

Economic Activities

  • Primary Sector: Agriculture, forestry, animal husbandry, fishing, poultry farming, and mining.

  • Secondary Sector: Quarrying and manufacturing

  • Tertiary Sector: Trade, transport, communication, banking, education, health, tourism, services, insurance etc.

  • Economic Activity: Activity for pay or profit – Production of Goods & Services

  • Non-Economic Activity: Activity for self-consumption – Primary products

Now if we try to understand, we are all human resources. We must understand the basic structure of the society, when I say structure of the society we mean the basic sector under which we can classify the economy, so we have kind of three sector classification that we discussed, the primary sector, secondary sector and tertiary sector here. You have a quaternary sector that is the research and development. We have not covered this as a part of in NCERT. So you have the 4th quaternary sector which deals with research and development activities, now the primary sector which uses direct or indirect relation to the nature or agriculture, fishing, lumbering, animal husbandry then you have farming mining so all these are kind of primary sector.

Under secondary sector you will have manufacturing that would come in, where you are producing something from either the natural resources that are available or some other sources. Then you have the tertiary sector which is basically the service sector where you are providing different kind of services like trade, transport, communication, banking, education, health, tourism, services, insurance etc. So all these economic activities are activities for pay or I could say activities for profit because the sole aim is production of goods and services and supplier to the market or to an individual.