Class 9 Economics Chapter 1 Question Answers - Economics

Q1. How did countries like Japan become rich/developed?

Ans: Countries like Japan have become developed despite lacking natural resources. They achieve this by: Importing necessary natural resources.

• Investing heavily in education and health for their population.
• Utilising land and capital efficiently.
• Leveraging technology and skills developed by their people.

This focus on human resources has created a cycle of growth, where educated and healthy individuals contribute to the economy, leading to further advancements.

Q2. How can the large population of India be turned into a productive asset?

Ans: India's large population can be transformed into a productive asset through strategic investments in human capital. Here are key approaches:

• Education: Investing in education improves the quality of the workforce, leading to higher productivity.
• Health Care: Ensuring access to health services enhances the overall well-being of the population, which in turn boosts productivity.
• Training: Providing training for industrial and agricultural workers in modern technologies and scientific methods can significantly increase efficiency.
• Long-term Benefits: Investment in education and health yields high returns, contributing to economic growth.

By viewing the population as a human resource, we can harness its potential to drive economic development. A healthier and more educated workforce not only benefits individuals but also enhances societal progress.

Q3. Why do educated parents invest more heavily on their children’s education?

Ans: Educated parents tend to invest more in their children's education due to several key factors:

• They understand the importance of education from their own experiences.
• They prioritise nutrition and hygiene, ensuring their children are healthy.
• They actively support their children's educational and health needs.
• This creates a virtuous cycle where better education leads to improved opportunities.
• In contrast, disadvantaged parents may perpetuate a cycle of limited education and poor health for their children.

Investing in education and health can yield significant returns, including:

• Higher future earnings for the child.
• Greater contributions to society.

Overall, a well-educated and healthy population is a valuable asset, enhancing both individual and societal growth.

Q4. What are the main objectives of Sarva Siksha Abhiyan?

Ans: Sarva Siksha Abhiyan is a significant initiative by the central government aimed at achieving universal elementary education. Its main objectives include:

• Providing elementary education to all children aged six to fourteen by 2010.
• Increasing enrollment through back-to-school camps.
• Encouraging attendance and retention of children while improving their nutritional status.

This initiative involves collaboration between the central government, state governments, local authorities, and communities to ensure that every child receives quality education.

Q5. ‘Statistically, the unemployment rate is low in India.’ Explain.

Ans: In India, the unemployment rate appears low statistically, but this figure can be misleading due to several factors:

• A significant number of individuals with low income and productivity are counted as employed.
• Many people seem to work year-round, yet their income and potential are inadequate.
• Some individuals are engaged in work that feels forced, leading them to seek better opportunities.
• Due to financial constraints, poor people often take any available job, regardless of its earning potential.
• These jobs typically keep them at a bare subsistence level.

In rural areas, there are two main types of unemployment:

• Seasonal unemployment: This occurs when agricultural workers cannot find jobs during certain months of the year.
• Disguised unemployment: Individuals may appear employed but are not contributing effectively to productivity.

In urban areas, the situation is different:

• Educated unemployment is prevalent, with many graduates struggling to find suitable jobs.

Overall, while the statistics suggest low unemployment, the reality reflects a complex situation where many are engaged in inadequate or unproductive work.

Q6. How does investment in human resource give higher return in future?

Ans: Investment in human capital through education, training, and medical care yields returns similar to investments in physical capital. The benefits include:

• Higher incomes: More educated and better-trained individuals tend to earn more due to increased productivity.
• Healthier workforce: Healthier individuals are also more productive, contributing to higher overall income levels.
• Societal benefits: The advantages of a more educated and healthier population extend beyond those directly receiving education or healthcare, benefiting society as a whole.

Countries like Japan have demonstrated that significant investment in human resources can lead to economic prosperity, even without natural resources.

Furthermore, investing in human capital creates a virtuous cycle:

• Educated parents are more likely to invest in their children's education and health.
• This leads to higher future earnings and greater societal contributions from the next generation.

In contrast, a lack of investment can create a vicious cycle, where disadvantaged parents may struggle to provide education and healthcare for their children.

Overall, human capital is crucial as it enhances the productive capacity of a nation, similar to physical capital formation.

Q7. Why will a firm not like to employ a worker with ill-health? How does it affect the working environment?

Ans: Health is a crucial factor that influences an individual's productivity. When a person's health is good, it enhances their ability to work effectively. Conversely, if a worker suffers from ill health, they may become a liability for both their family and society. Therefore, firms typically prefer not to hire employees with health issues. The implications of employing such workers include:

• Reduced Productivity: Ill health can lead to lower output, as affected workers struggle to perform their tasks efficiently.
• Increased Absenteeism: Unhealthy employees are more likely to take sick leave, disrupting workflow and team dynamics.
• Financial Loss: Hiring individuals who cannot contribute effectively can result in significant losses for the organisation.
• Impact on Morale: The presence of unhealthy workers may negatively affect the overall working environment, leading to decreased morale among healthy employees.

In summary, a worker's health is vital for maximising their potential and contributing positively to the organisation. Healthy employees not only perform better but also foster a more productive and harmonious workplace.

Q8. ‘The employment structure is characterised by self-employment in the primary sector.’ Explain.

Ans: The primary sector refers to agriculture, where families often work together, even if not everyone is necessary. This leads to hidden unemployment in the sector. However, the family shares the produce, which helps alleviate the difficulties of unemployment in rural areas. Despite this, it does not eliminate poverty, prompting many families to migrate to cities in search of better job opportunities.

• In the primary sector, families contribute collectively to farming.
• This can result in disguised unemployment, where more people work than needed.
• Shared produce helps reduce the impact of unemployment.
• However, it does not significantly reduce poverty.
• Consequently, surplus labour often moves to urban areas for jobs.

Q9. How have the various activities been classified into sectors? Give one example from each sector.

Ans: The various activities are classified into three main sectors:

• Primary Sector: This includes activities related to agriculture, forestry, animal husbandry, fishing, poultry farming, mining, and quarrying. Example: Farming.
• Secondary Sector: This sector focuses on manufacturing and processing of goods. Example: Factory production.
• Tertiary Sector: This encompasses services such as trade, transport, communication, banking, education, health, tourism, and insurance. Example: A teacher providing education.

These activities contribute to the production of goods and services, adding value to the national income. Economic activities are divided into:

• Market Activities: These involve remuneration for work performed, such as producing goods or providing services.
• Non-Market Activities: These include production for self-consumption, such as growing food for personal use.

Q10. Define the term unemployment. What are the major types of unemployment prevailing in India?

Ans: Unemployment refers to a situation where individuals who are willing to work at prevailing wages cannot find jobs.

In India, there are four major types of unemployment:

• Seasonal unemployment: This occurs when people cannot find work during certain months of the year, particularly in agriculture. For example, there are busy seasons for sowing and harvesting, but other months may offer little work.
• Disguised unemployment: This type is seen when individuals appear to be employed but their contribution to productivity is minimal. For instance, if a family farm requires five workers but has eight, the extra three are considered disguised unemployed as their removal does not affect productivity.
• Educated unemployment: This is prevalent in urban areas, where many graduates and post-graduates struggle to find suitable jobs despite their qualifications. A study indicates that unemployment rates are rising faster among educated individuals compared to those with lower qualifications.
• Structural unemployment: This occurs when there is a mismatch between the skills of the workforce and the needs of the job market, leading to job vacancies in some sectors while others experience high unemployment.

Overall, unemployment not only affects individuals but also has broader implications for the economy, leading to wasted resources and increased social issues.

Q11. Enlist the factors on which the quality of population depends. Also highlight the role of education in enhancing the quality of population.

Ans: The quality of a population depends on several key factors:

• Literacy rate
• Health of individuals, often measured by life expectancy
• Skill formation among the population

Education plays a crucial role in improving the quality of the population. It contributes to:

• Human capital formation, which is essential for individual growth
• Enabling individuals to reach their full potential and secure better jobs
• Increasing productivity and income levels

Education helps individuals take advantage of economic opportunities. It is a major factor in determining earnings, as seen in:

• Women with low education and skills often earn less than men
• Women with higher education and skills can earn equally to men

Therefore, it is vital to provide quality education to children. This investment in human resources through education and healthcare yields significant returns in the future, similar to investments in land and capital.

Educated parents are more likely to invest in their children's education and health, creating a positive cycle of growth and opportunity. Conversely, disadvantaged parents may perpetuate a cycle of poverty, limiting their children's potential.

In summary, a well-educated and healthy population is a valuable asset for any country, contributing to economic growth and societal well-being.

Q12. Mention some of the factors responsible for seasonal unemployment.

Ans: Seasonal unemployment primarily affects rural areas, particularly those reliant on agriculture. The key factors contributing to this issue include:

• Poverty: Many rural areas experience extreme poverty, limiting farmers' ability to engage in multiple cropping, which could provide year-round employment.
• Lack of small-scale industries: The absence of these industries in rural regions restricts job opportunities for those who are unemployed during the off-season.
• Limited commercial agriculture: The practice of commercial agriculture is not widespread in India. Expanding this sector could significantly reduce seasonal unemployment.

During certain months, agricultural work such as sowing, harvesting, and weeding is abundant, while other months offer little to no work. This fluctuation leads to seasonal unemployment for those dependent on agriculture.

Q13. What is Mid-day Meal scheme? What was the purpose behind launching this scheme?

Ans: The Mid-day Meal scheme is a school meal programme initiated by the Government of India in 1995. It provides free lunches on working days to children in:

• Primary and upper primary classes
• Government schools
• Government-aided schools
• Local body schools
• Madarsas

The main objectives of the scheme are:

• To encourage attendance and retention of children in schools
• To improve the nutritional status of school-age children across the country

This initiative aims to increase enrolment in elementary education and contribute to a more literate population in India.

Q14. Give the initiatives taken by the Government to improve elementary education in India.

Ans: The Government of India has implemented several initiatives to enhance elementary education and increase literacy rates. Key measures include:

• Sarva Siksha Abhiyan: Aimed at providing elementary education to all children aged 6 to 14 years. This initiative is a collaborative effort involving the central government, state governments, local authorities, and communities.
• Bridge courses and back-to-school camps: These programmes are designed to boost enrolment in elementary education.
• Mid-day Meal Scheme: This initiative encourages school attendance and retention by improving children's nutritional status.

These policies collectively contribute to increasing the literate population in India.

Q15. Describe how the nature of unemployment differs in rural and urban areas.

Ans: The nature of unemployment varies significantly between rural and urban areas due to several factors:

Rural Areas:

• Seasonal Unemployment: This occurs when agricultural workers cannot find jobs during certain months of the year. For example, there are busy seasons for sowing and harvesting, but other months may offer little work.
• Disguised Unemployment: In this case, people seem to be employed but are not fully utilised. For instance, a family may have eight members working on a farm that only needs five. The extra three do not contribute significantly to productivity.

Urban Areas:

• Educated Unemployment: Many young people with degrees (matriculation, graduation, and post-graduation) struggle to find jobs. This issue is particularly pronounced among graduates in fields like biotechnology and information technology.
• Technical Unemployment: Even those with technical qualifications often cannot find suitable employment, leading to frustration and a sense of hopelessness.

Overall, while rural areas face challenges related to seasonal and disguised unemployment, urban areas grapple with the issue of educated unemployment, highlighting the diverse nature of unemployment across different regions.

Q16. Mention some harmful effects of unemployment.

Ans: Unemployment is a significant issue with various harmful effects:

• Wastage of resources: Unemployment leads to a loss of valuable manpower, turning potential assets into liabilities for the economy.
• Hopelessness: Many young people feel despair due to financial struggles, which affects their families and communities.
• Economic burden: The unemployed rely heavily on the working population, increasing economic strain.
• Decline in quality of life: Families living at a subsistence level often experience deteriorating health and reduced school attendance.
• Indicator of economic health: Rising unemployment rates signal a struggling economy and indicate wasted resources that could be productively employed.

In India, while the official unemployment rate appears low, many individuals work in low-paying jobs that do not utilise their skills effectively. This paradox results in:

• A mismatch between the qualifications of graduates and available job opportunities.
• Disguised unemployment, where individuals seem employed but do not contribute significantly to productivity.

Overall, unemployment has detrimental effects on both individuals and society, hindering economic growth and development.

Q17. ‘Illiterate and unhealthy population are a liability for the economy.’ Justify the statement with suitable examples.

Ans: Illiterate and unhealthy populations pose a significant liability for a country's economy due to several factors:

• Inefficient use of resources: An illiterate and unhealthy workforce struggles to utilise land and capital effectively, hindering economic growth.
• Low income: Individuals lacking education and health often earn minimal wages, making it difficult for them to secure employment.
• Dependence on others: Such individuals often rely on others for support, limiting their contributions to society.
• Cycle of disadvantage: Uneducated parents may neglect hygiene and education for their children, perpetuating a cycle of poverty and illiteracy.
• Low productivity: An uneducated and unhealthy population contributes to a nation's economic decline, becoming a burden rather than an asset.
• Need for investment: To transform this population into a productive resource, there must be significant investment in human capital through education and healthcare.

In summary, an illiterate and unhealthy population not only limits individual potential but also adversely affects overall economic growth, making it crucial to invest in education and health to foster a more productive society.

Q18. Describe unfavourable effects of population growth in a country like India. [Old NCERT]

Ans: India's large population presents both opportunities and challenges. While it can be transformed into a productive asset through investment in human capital such as education and healthcare, there are several unfavourable effects of rapid population growth:

• Economic Liability: In a developing country like India, a significant portion of the population can become a liability, hindering economic progress.
• Unemployment: A fast-growing population leads to more individuals entering the labour market than available jobs, resulting in high unemployment rates.
• Reduced Capital Availability: A larger population decreases the per capita capital, which can lower productivity and lead to diminishing returns.
• Food Scarcity: Unchecked population growth can create food shortages, leading to undernourishment and reliance on food imports, which negatively impacts the economy.
• Illiteracy and Poverty: High population growth contributes to cycles of illiteracy and poverty, as uneducated parents often pass on these disadvantages to their children.

Q19. How can we tackle the problem of unemployment? Give some suggestions.

Ans: Unemployment is a significant issue that requires careful consideration. Here are some suggestions to address this problem:

• Population control: The rapidly increasing population must be managed, as job opportunities have not kept pace with this growth.
• Industrialisation: Transitioning from an agricultural to an industrial economy can help alleviate unemployment, given India's abundant raw materials.
• Diversification: Reducing reliance on agriculture by promoting cottage and small-scale industries in rural areas can create jobs and reduce urban migration.
• Vocational education: Encouraging vocational and skill-based education across the country can significantly reduce unemployment.
• Entrepreneurship: Supporting educated youth in starting their own businesses can generate jobs for others, a focus of the current government.