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

Unlike land and physical capital, human resources consist of knowledge and skills that can improve and be trained to perform any task required. They have the ability to improve themselves, whereas other resources cannot change by their own effort.

6. Why is population considered an asset for the economy?

Population is considered an asset for the economy because it is the source of supply of the most important factor resource, i.e., human capital. Human capital organizes the population's activity and makes other factor resources work.

8. What is the virtuous cycle of human development?

The virtuous cycle of human development is created when educated parents invest more in their child's education, leading to an increased understanding of the importance of education and proper nutrition and hygiene.

9. How have countries like Japan achieved development despite having no natural resources?

Despite lacking natural resources, Japan achieved development by investing in education and health for its people. This created a skilled and trained workforce which used other resources to create efficient technology, driving economic growth.

11. What are non-market activities?

Non-market activities are the production for self-consumption, such as the consumption and processing of primary products and own account production of fixed assets, and do not contribute to the flow of goods and services in the economy.

12. How can economic activities be classified?

Economic activities can be divided into three categories: primary (agriculture, mining), secondary (manufacturing) and tertiary (services, healthcare, education). Each sector produces different goods and services, contributing to the overall economy.