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CBSE Class 9 Economics Important Questions - Chapter 2 People as Resource

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People as Resource Class 9 Economics Important Questions and Answers - FREE PDF Download

Chapter 2 of CBSE People as Resource Class 9 Important Questions, focuses on viewing the population as a valuable asset for the economy. This chapter explains how a nation’s working people, with their skills and abilities, can positively impact economic growth and development. It covers how education, health, and other factors contribute to enhancing human resources. We have solved important questions from this chapter to help students review and prepare effectively. These questions are designed to cover the key topics and concepts of the chapter, ensuring a thorough understanding.

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Practising Class 9 Economics Chapter 2 Important Questions and Answers will help students get the main ideas and improve their knowledge. Students can access and download a FREE PDF of CBSE Class 9 Economics Important Questions for other chapter-wise questions here. This will assist in efficient revision and better exam preparation. The CBSE Class 9 Social Science Syllabus includes important subjects like history, geography and political science.

Access the Class 9 Economics Chapter 2 Important Questions and Answers for People as Resource

1. What do you understand by ‘people as a resource’?

Ans: ‘People as a resource’ means viewing individuals as valuable assets because of their skills, knowledge, and health. It highlights that investing in people’s education and health helps them work better and contribute more to the economy. For example, educated and healthy people can do their jobs more effectively, which benefits the economy. By improving people’s abilities and well-being, they can help the economy grow and become more efficient.


2. How is human resource different from resources like land and physical capital?

Ans: Human resources refer to people and their skills, while land and physical capital are different types of resources. Land includes natural resources like minerals, and physical capital includes tools, machines, and buildings. Human resources are unique because they bring creativity and effort, which help in using land and physical capital effectively. While land and physical capital are important for production, people’s abilities determine how well these resources are used.


3. In which year did India have its highest literacy rates?

Ans: India’s highest literacy rate was recorded in the 2011 Census. At this time, about 74% of people could read and write. This increase showed progress in education and access to learning resources. The higher literacy rate meant that more people, including both adults and children, had better chances for education and opportunities, reflecting improvements in the country’s education system.


4. What is the difference between human resource and human capital formation?

Ans: Human resources refers to people available for work and their skills. Human capital formation is the process of improving these skills through education and training. While human resources are the people themselves, human capital is the value of their skills and knowledge gained through learning. Human capital formation helps make people more productive by enhancing their abilities, leading to better job performance and economic growth.


5. Explain the Infant Mortality Rate.

Ans: The Infant Mortality Rate (IMR) measures how many babies die before their first birthday per 1,000 live births in a year. It shows how well healthcare and living conditions support infants. A high IMR means there are problems with healthcare and nutrition, while a low IMR indicates better care and living conditions for babies. Tracking the IMR helps assess the effectiveness of health programs and identifies areas needing improvement to ensure better survival rates for infants.


6. How do education and health contribute to human capital formation?

Ans: Education and health are key to human capital formation. Education improves skills and knowledge, making individuals more effective in their jobs. Health ensures people are fit to work and can perform well. Together, education and health enhance a person’s ability to work and contribute to the economy. Investing in these areas makes people more productive and supports overall economic development by providing a skilled and healthy workforce.


7. What role does health play in a person’s work life?

Ans: Health plays an important role in work-life by affecting how well people can perform their jobs. Good health means having the energy and strength to work effectively and consistently. Healthy workers are less likely to miss work due to illness and can focus better on their tasks. This leads to higher productivity and lower healthcare costs, making a person more valuable to their employer and improving their job satisfaction.


8. What are economic activities?

Ans: Economic activities are actions that involve creating, buying, or selling goods and services. These activities help generate income and contribute to the economy. Examples include farming, manufacturing, and retail. By engaging in economic activities, individuals and businesses create jobs, earn money, and provide necessary goods and services. Economic activities drive growth and improve living standards by making sure people have access to the things they need.


9. What activities are included in the primary, secondary, and tertiary sectors?

Ans: The activities are included in the primary, secondary, and tertiary sectors are:


  • Primary sector: This includes activities that collect or harvest natural resources, like farming, mining, and fishing.

  • Secondary sector: This involves turning raw materials into finished products, such as manufacturing clothes, electronics, or cars.

  • Tertiary sector: This provides services rather than goods, such as healthcare, education, and transportation.


Each sector plays a role in the economy, with the primary sector providing raw materials, the secondary sector making products, and the tertiary sector offering services to people.


10. How do economic activities differ from non-economic activities?

Ans: Economic activities involve producing, buying, or selling goods and services that create income and contribute to the economy. Non-economic activities, such as household chores or volunteering, do not involve financial transactions and do not directly affect the economy. While non-economic activities are valuable for personal and community well-being, they are not counted in economic measures. Economic activities are essential for economic growth, while non-economic activities benefit people in other ways.


11. Why is the daily housework done by a housewife not counted as an economic activity?

Ans: Daily housework done by a housewife is not counted as an economic activity because it does not involve buying or selling goods or services in the market. Economic activities are those that produce goods or services for sale, which generate income. Housework, while important for running a household, is not traded or sold and does not contribute directly to economic statistics. Although housework is essential for family life, it is not included in economic accounting.


12. Why are women often employed in lower-paid jobs?

Ans: Women often work in lower-paid jobs due to factors like discrimination, traditional roles, and fewer advancement opportunities. Jobs held by women, such as those in services or caregiving, are often undervalued and pay less. Women may also face barriers to higher-paying jobs due to biases and limited career growth opportunities. Addressing these issues involves promoting equal pay, improving career opportunities, and challenging stereotypes to ensure women can access well-paid and rewarding jobs.


13. What does “unemployment” mean?

Ans: Unemployment means that people who are willing and able to work cannot find a job. It is measured by the unemployment rate, which shows the percentage of people looking for work but unable to find it. High unemployment indicates a lack of job opportunities and can be a sign of economic problems. Unemployment can result from various factors, including economic downturns, changes in industry demand, and skill mismatches between job seekers and available jobs.


14. What are the sources of human capital? Name two.

Ans: The main sources of human capital are education and training. Education helps individuals gain knowledge and skills needed for various jobs. Training provides specific skills required for particular roles. Both education and training improve a person’s abilities and make them more valuable in the workforce. Investing in these areas helps people become more productive and contributes to economic growth by preparing them for better job opportunities.


15. What is the difference between disguised unemployment and seasonal unemployment?

Ans: Disguised unemployment occurs when more people are working than needed, often in jobs where productivity is low, such as in agriculture with too many workers on the same land. Seasonal unemployment happens when people are out of work during certain times of the year due to seasonal changes, like agricultural workers being unemployed in the off-season. Both types of unemployment highlight different issues in the job market and require different solutions.


16. Why is educated unemployment a unique issue in India?

Ans: Educated unemployment is a unique issue in India because many people with higher education degrees struggle to find jobs. This problem happens because the skills learned in education may not match the needs of the job market. Additionally, there are not enough job opportunities that match the qualifications of educated individuals. This leads to wasted potential and economic inefficiency, as educated people cannot find suitable work.


17. What changes in the education system could help address educated unemployment?

Ans: To tackle educated unemployment, the education system could:


  • Align what students learn with current job market needs to ensure relevant skills.

  • Provide vocational training and practical skills for specific careers.

  • Encourage entrepreneurship to help students start their businesses.


18. What does “life expectancy” mean?

Ans: Life expectancy is the average number of years a person is expected to live based on current death rates. It reflects the overall health and living conditions in a country. Higher life expectancy means better healthcare and living conditions, while lower life expectancy indicates more health problems or poorer living conditions. Monitoring life expectancy helps assess the effectiveness of health policies and improvements in quality of life.


19. Which capital is considered the best: land, labour, physical capital, or human capital? Why?

Ans: Human capital is often considered the best because it includes people’s skills, knowledge, and abilities. Unlike land and physical capital, which are fixed, human capital can grow and improve through education and training. Investing in human capital helps people become more skilled and adaptable, leading to better job performance and economic development. This makes human capital highly valuable for overall economic progress.


20. Which of the following is part of the secondary sector?

(a) Poultry farming

(b) Manufacturing

(c) Transport

(d) Quarrying

Ans: (b) Manufacturing


21. What is the goal of the Sarva Shiksha Abhiyan?

(a) To provide elementary education to women

(b) To provide elementary education to the rural poor

(c) To provide elementary education to all children aged 6-14 years

(d) To provide elementary education to the urban poor

Ans: (c) To provide elementary education to all children aged 6-14 years


22. How does the use of modern farming methods affect the environment?

Ans: Modern farming methods often involve using chemical fertilizers, pesticides, and large machinery. While these methods can increase crop yields, they can also have negative effects on the environment. Chemicals can contaminate soil and water, harming wildlife and affecting the health of people who consume the crops. Large machinery can lead to soil erosion and depletion of natural resources. To reduce these impacts, farmers need to adopt practices that are more sustainable and environmentally friendly, such as using organic fertilizers, crop rotation, and reducing machinery use.


23. What role do markets play in the story of village Palampur?

Ans: In the story of Palampur, markets play a key role in the local economy. Farmers sell their produce in local markets, which helps them earn money to buy other goods and services. The presence of markets helps villagers connect with buyers and suppliers, making it easier to trade goods. Markets also provide a place for villagers to exchange products and information, contributing to the economic development of the village. By participating in markets, villagers can access a wider range of goods and improve their standard of living.


24. How does the availability of electricity impact the village of Palampur?

Ans: Electricity has a significant impact on the village of Palampur. It powers essential services such as irrigation systems, which help increase agricultural productivity by providing a reliable water supply. Electricity also supports other activities, like running small-scale businesses and schools. With access to electricity, villagers can use modern equipment and technology, leading to better living conditions and more efficient production methods. Overall, electricity helps to improve both the economic and social aspects of village life.


25. What are some challenges faced by farmers in Palampur due to limited land?

Ans: Farmers in Palampur face several challenges because of limited land. With a small amount of land, they must carefully manage resources to produce enough crops to support their families. Limited land can lead to overuse of soil, which reduces its fertility over time. It also means that farmers have to compete for space, which can lead to fragmented plots and less efficient farming practices. Additionally, small landholdings can limit the ability to invest in modern farming methods or machinery, affecting overall productivity and income.


26. How do family-run businesses contribute to the economy of Palampur?

Ans: Family-run businesses in Palampur play an important role in the village economy. These businesses, such as small shops, dairy farms, and handcrafts, provide essential goods and services to the local community. They create jobs for family members and contribute to the overall income of the household. By operating locally, these businesses help keep money within the village and support local economic activities. They also help in reducing the dependence on external sources for goods and services, promoting self-reliance within the village.


Important Topics of Class 9 Economics Chapter 2 People as Resource

Here are key topics from Class 9 Economics Chapter 2, "People as Resource." These topics explain how people contribute to economic growth through their skills, health, and education. They highlight the role of human resources in improving a country’s development.


S. No

Important Topic 

Explanation

1

Human Capital Formation

Investing in education and health improves people's skills and productivity, which benefits the economy.

2

Economic Activities

These involve producing and consuming goods and services, creating jobs and income.

3

Role of Education

Education provides the necessary skills for various jobs and boosts economic contribution.

4

Health and Productivity

Good health enhances job performance and overall economic productivity.

5

Unemployment

Unemployment happens when people who want to work can't find jobs, affecting both the economy and individuals.


Benefits of Learning with Class 9 Economics Chapter 2 People as Resource Important Questions 

  • Students will see how investing in their education and health can lead to better job opportunities and a more successful future.

  • By learning about different jobs and industries, students can make informed decisions about their career paths and understand how various roles contribute to the economy.

  • Recognising the role of education highlights why it is important to concentrate on studies for personal and economic success.

  • Students will understand that maintaining good health is essential for improving work performance and achieving overall success.

  • Knowing about unemployment helps students understand the need for continuous learning and skill development to face job market challenges effectively.


Conclusion 

Studying the important questions from Class 9 Economics Chapter 2, "People as Resource," helps students understand how education and health can improve their future. It shows why focusing on learning and staying healthy is important for getting good jobs and succeeding. Practise People as Resource Class 9 Important Questions to prepare well for your exams. For extra help and resources, check out Vedantu resources. Vedantu offers great support to make studying easier and help students to do well in their exams.


Important Study Materials for Class 9 Economics Chapter 2


CBSE Class 9 Economics Chapter-wise Important Questions

Additional Study Materials for Class 9 Social Science Economics

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FAQs on CBSE Class 9 Economics Important Questions - Chapter 2 People as Resource

1. What is meant by the term ‘people as a resource’ in the context of the CBSE Class 9 Economics syllabus for the 2025-26 session?

The term ‘people as a resource’ refers to viewing a country's population as an asset rather than a liability. It emphasizes that with investments in education, health, and training, people can become human capital. This capital possesses the skill and knowledge to contribute productively to the creation of the Gross National Product, making them the most important economic resource.

2. Differentiate between the primary, secondary, and tertiary sectors of the economy with one example for each.

The three sectors of the economy are distinguished by the nature of their activities:

  • Primary Sector: Involves activities that directly use natural resources. Example: Agriculture, mining, or forestry.
  • Secondary Sector: Involves activities that process raw materials into finished goods. Example: Manufacturing of cars from steel or textiles from cotton.
  • Tertiary Sector: Involves activities that provide services to support the other two sectors and the population. Example: Banking, transportation, or teaching.

3. What is the key difference between disguised unemployment and seasonal unemployment? This is an important question for exams.

The key difference lies in the nature of joblessness. Disguised unemployment occurs when more people are engaged in an activity than are needed, so their removal does not affect productivity (e.g., five people farming a plot that only needs two). Seasonal unemployment happens when people are unemployed during specific seasons of the year, typically in agriculture or tourism-related industries.

4. Explain the crucial role of education and health in the formation of human capital.

Education and health are two of the most important factors in human capital formation. Education equips people with necessary skills, knowledge, and training, increasing their productivity and earning potential. Good health ensures that individuals are physically and mentally fit to work efficiently and consistently, reducing absenteeism and maximising their contribution to the economy. Together, they transform a person into a valuable resource.

5. What are some key reasons why women are often employed in low-paid jobs in India?

Women are often employed in low-paid jobs due to a combination of factors. Many work in the unorganised sector where job security is low and legal protection is minimal. Often, women have lower levels of education and skill formation compared to men, limiting their access to better-paying jobs. Additionally, social norms and a historical division of labour often channel women into jobs that are considered less valuable and are therefore paid less.

6. Suggest three measures within the education system that could help reduce the problem of educated unemployment.

To address educated unemployment, the education system can implement the following measures:

  • Introduce more vocational courses to provide practical, job-oriented skills.
  • Align the curriculum with current market demands to bridge the gap between skills learned and skills required by industries.
  • Promote entrepreneurship through training and support, encouraging students to become job creators rather than just job seekers.

7. Distinguish between economic and non-economic activities, providing an example for each.

The primary distinction is whether the activity adds value to the national income. Economic activities are performed for monetary gain and contribute to the economy, such as a chef cooking in a restaurant. Non-economic activities are performed for self-consumption or personal satisfaction and do not involve a market transaction, such as a person cooking for their own family at home.

8. Why is human capital considered superior to other resources like land and physical capital? Justify your answer.

Human capital is considered the most superior resource because it is the only factor of production that is active and intelligent. Land and physical capital (like machinery) are passive resources that cannot become useful on their own. It is the skill, creativity, and knowledge of human capital that organises and utilises these other resources to generate value. Furthermore, human capital can be improved continuously through investment in health and education.

9. Despite being essential for a household, why is work done by a homemaker not classified as an economic activity?

The work done by a homemaker, though immensely valuable, is not classified as an economic activity because it is not performed for a wage or profit in the market. The measurement of national income only includes goods and services produced for market exchange. Since household chores are for self-consumption and do not involve a monetary transaction, they are categorised as non-economic activities and are not included in GDP calculations.

10. Explain why educated unemployment is considered a unique and serious problem for India.

Educated unemployment is a unique problem for India because there is a major mismatch between the skills acquired through formal education and the skills demanded by the job market. While the number of graduates has increased significantly, many lack the specific technical or vocational skills needed by industries. This leads to a situation where people with degrees (matriculation, graduation, etc.) are unable to find suitable jobs, representing a wastage of human resources and educational investment.

11. How do health indicators like Infant Mortality Rate (IMR) and life expectancy reflect the quality of a nation's population?

Health indicators are direct measures of the quality of a population as a resource. A low Infant Mortality Rate (IMR) indicates better pre-natal and post-natal care, nutrition, and sanitation, leading to a healthier future generation. A high life expectancy signifies better overall health infrastructure, awareness, and living conditions. A healthy population is more productive, efficient, and capable of contributing effectively to economic growth.

12. What is the 'virtuous cycle' of human development? Explain with an example from the chapter People as Resource.

A virtuous cycle is a chain of events where a positive development leads to further positive outcomes, creating a self-reinforcing loop of progress. In the context of human resources, educated and healthy parents are more likely to understand the importance of and invest in their own children's education and health. This creates a cycle where the next generation also becomes well-educated and healthy, leading to higher earnings and a better quality of life, thus continuing the cycle for future generations.