Class 9 Economics Chapter 1 HOTS Questions - Economics

Q1: What part does health play in the individual's working life?
Ans: Health plays a crucial role in an individual's working life because:

• An unhealthy person struggles to work efficiently.
• A healthy body supports a productive mind.
• Healthy individuals can work harder and achieve better results, leading to higher earnings and improved quality of life.

Q2: What are the various activities undertaken in the Primary sector, Secondary sector and Tertiary sector?
Ans: Primary Sector Activities:

• Agriculture
• Forestry
• Animal husbandry
• Fishing
• Poultry farming
• Mining

Secondary Sector Activities:

• Manufacturing
• Construction

Tertiary Sector Activities:

• Trade
• Transport
• Communication
• Banking
• Education
• Health
• Tourism
• Services
• Insurance

Q3: How will you explain the term unemployment?
Ans: Unemployment occurs when individuals who are willing to work at current wages cannot find jobs. Key points include:

• Willingness to work: Individuals must be actively seeking employment.
• Current wages: The jobs must offer wages that the individuals find acceptable.
• Job availability: There must be a lack of jobs in the market for these individuals.

Unemployment can lead to significant social and economic issues, such as:

• Increased reliance on the working population.
• Decline in overall quality of life.
• Wastage of potential economic resources.

Q4: How does Population become human capital?
Ans: Population becomes human capital through targeted investment in key areas:

• Education: Enhances knowledge and skills.
• Training: Improves specific job-related abilities.
• Medical care: Ensures a healthier workforce.

These investments lead to:

• Higher productivity and efficiency.
• Increased incomes for individuals.
• Overall economic growth for society.

Thus, a well-invested population transforms into a valuable asset for the economy.

Q5: What does 'People as a Resource' mean?
Ans: 'People as a Resource' refers to a country's workforce, highlighting their productive skills and abilities.

• This perspective views the population as a valuable asset contributing to the Gross National Product.
• It emphasises the potential of a large population, often seen negatively due to challenges like food and education.
• When the workforce is educated and healthy, it enhances the country's productive power, similar to physical capital.
• Investment in human capital through education and healthcare yields returns, such as higher incomes.
• Examples like India's Green Revolution show how knowledge can boost productivity.

Overall, viewing people as a resource underscores their role as a crucial part of economic growth.

Q6: What is 'human capital formation'?
Ans: Human capital formation refers to the process of enhancing the existing human resources through education, training, and healthcare. This development leads to:

• Increased productivity of individuals.
• Higher income levels due to improved skills.
• A healthier population contributing to economic growth.

By investing in human capital, a country can significantly boost its overall productivity and economic strength.

Q7: How can investment be made in human capital?
Ans: Investment in human capital can be made through various means, which yield significant returns similar to investments in physical capital. Key methods include:

• Education: Providing access to quality education enhances skills and knowledge.
• Training: Offering vocational training improves job readiness and productivity.
• Healthcare: Investing in health ensures a healthier workforce, leading to higher productivity.

These investments lead to:

• Higher incomes due to increased productivity.
• A more skilled workforce that can adapt to modern technologies.
• Broader societal benefits, as educated and healthy individuals contribute positively to their communities.

Q8: How is human capital superior to other resources?
Ans: Human Capital is superior to other resources such as land and physical capital for several reasons:

• Utilisation: Human resources can effectively utilise land and capital, whereas land and capital cannot function independently.
• Investment Returns: Investing in human capital through education and training leads to higher productivity and incomes.
• Health Benefits: Healthier individuals contribute more effectively to the economy.
• Broader Impact: The benefits of a well-educated and healthy population extend beyond those directly receiving education and healthcare.

Q9: How can a large population of India be turned as an asset rather than a liability?
Ans: A large population can be transformed into a productive asset through strategic investment in human capital. This can be achieved by:

• Investing in education and health for everyone.
• Training industrial and agricultural workers to use modern technology.
• Conducting valuable scientific research.

By enhancing the skills and well-being of the population, India can leverage its large workforce for economic growth.

Q10: What kind of investment can be made on a child?
Ans: Investment in a child's future can be made through:

• Education: Providing quality education helps children develop skills and knowledge, leading to better job opportunities.
• Health: Ensuring good health through proper nutrition and medical care enhances a child's ability to learn and grow.

These investments yield significant returns, including:

• Higher earnings in adulthood.
• Greater contributions to society.

Parents who value education often invest more in their children's learning and health, creating a positive cycle of growth and opportunity.

Q11: How a vicious cycle is created by illiterate parents for their children?
Ans: A vicious cycle can develop when illiterate or disadvantaged parents, who lack education and hygiene, inadvertently keep their children in a similar state of disadvantage. This cycle can manifest in several ways:

• Parents may not prioritise their children's education.
• They may lack awareness of proper healthcare and nutrition.
• Children may grow up without the skills needed for better job opportunities.
• This perpetuates a cycle of poverty and illiteracy across generations.

Q12: Why educated parents invest heavily on the education of their children?
Ans: Educated parents tend to invest significantly in their children's education for several reasons:

• They understand the importance of education from their own experiences.
• They recognise the benefits of proper nutrition and good hygiene.
• They are more likely to prioritise their children's educational and health needs.

This creates a virtuous cycle, where better education leads to improved opportunities for their children.

Q13: How have countries like Japan become rich and developed?
Ans: Countries like Japan have become rich and developed through strategic investments in their people.

• They prioritised education and health, ensuring a skilled and healthy workforce.
• Efficient use of resources such as land and capital has been essential.
• Technological advancements have been developed by these educated individuals, driving further growth.

This combination of factors has led to sustainable economic development.

Q14: Classify various activities on the basis of its economic benefit?
Ans: Various activities can be classified into three main sectors based on their economic benefits:

• Primary Sector: This includes activities such as agriculture, forestry, animal husbandry, fishing, poultry farming, and mining.
• Secondary Sector: This sector is focused on manufacturing and industrial activities.
• Tertiary Sector: This encompasses services such as trade, transport, communication, banking, education, health, tourism, and insurance.

These sectors contribute to the production of goods and services, which in turn adds value to the national income. Economic activities are further divided into:

• Market Activities: These involve remuneration for work performed, such as the production of goods and services.
• Non-Market Activities: These include production for self-consumption, like household chores or personal projects.

Q15: What are Primary Activities?
Ans: Primary activities encompass various essential sectors that contribute to the economy. These include:

• Agriculture
• Forestry
• Animal husbandry
• Fishing
• Poultry farming
• Mining
• Quarrying

These activities form the foundation of economic production and resource management.

Q16: Which activities are included in Secondary sector?
Ans: Manufacturing is a key activity in the secondary sector, which includes:

• Small-scale industries
• Large-scale industries
• Production of goods from raw materials

These activities are essential for transforming resources into finished products.

Q17: What are Tertiary Activities?
Ans: Tertiary activities encompass a range of services that support the economy. These include:

• Trade
• Transport
• Communication
• Banking
• Education
• Health
• Tourism
• Insurance
• Various other services

These activities contribute to the production of goods and services, ultimately adding value to the national income.

Q18: What are economic activities?
Ans: Economic activities refer to actions that lead to the production of goods and services. These activities are crucial as they:

• Add value to the national income.
• Are classified into three main sectors:
  • Primary sector: Includes agriculture, forestry, fishing, and mining.
  • Tertiary sector: Comprises services like trade, transport, and education.
  • Secondary sector: Involves manufacturing and construction.
• Market activities: Involve payment for services or goods, such as jobs in government or private sectors.
• Non-market activities: Include production for personal use, like home gardening.
• Are divided into two categories:

Q19: What are Market Activities?
Ans: Market activities refer to economic activities that involve payment or profit. These activities can be summarised as follows:

• They include the production of goods and services.
• They encompass services provided by the government.
• Market activities require remuneration for those who perform them.

In contrast, non-market activities focus on production for self-consumption. 

Q20: What are Non-Market Activities?

Ans: Non-Market Activitiesrefer to the production that is intended for self-consumption. These activities include: 

• Consumption and processing of primary products.
• Production of fixed assets for personal use.

These activities are typically not exchanged in the market and do not generate income. 

Q21: How is division of labours made between men and women in the family?
Ans:  In India, the division of labour between men and women in families is often traditional:

• Women typically handle domestic chores.
• Men usually work outside the home to earn money.

For example: 

• Women manage tasks like cooking, cleaning, and caring for children.
• Men engage in activities such as farming or working in various jobs.

This division is influenced by historical and cultural factors, leading to a situation where women's contributions are often unpaid and not recognised in national income statistics. 

Q22: Is women's work an economic activity?
Ans: No, women are generally not paid for their services within the family. The household work they perform is not recognised in the National Income.

• Women earn income when they participate in the labour market.
• Their earnings, like those of men, depend on education and skills.
• Many women have limited education and skills, leading to lower pay compared to men.
• Women often work in sectors with low job security and insufficient legal protections.
• Employment in these sectors typically offers irregular and low income.
• Basic facilities such as maternity leave and childcare are often lacking.

Q23: What are the major determinants of earnings?
Ans:  Education and skill are the primary factors influencing an individual's earnings in the job market.

• Education enhances the ability to seize economic opportunities.
• Higher levels of education often lead to better job prospects and salaries.
• Skills acquired through training are crucial for securing well-paying jobs.
• Women, in particular, face challenges due to lower education and skill levels, resulting in lower wages compared to men.

Q24: What are unorganised sectors?
Ans: Unorganised sectors refer to parts of the economy where employment is often unstable and poorly paid. Key characteristics include:

• Irregular income: Workers typically earn low and inconsistent wages.
• Lack of basic facilities: There are no provisions for maternity leave, childcare, or other social security benefits.
• Vulnerability: Workers may face job insecurity and limited rights.

Q25: What kinds of jobs, attract women in organised sector?
Ans: Among the organised sector, the following jobs are particularly appealing to women:

• Teaching: This profession offers a stable environment and flexible hours.
• Medicine: Careers in healthcare, such as doctors and nurses, are highly respected and rewarding.
• Administrative roles: Positions that require organisational skills and management.
• Scientific and technological jobs: These roles are increasingly attracting women with the necessary qualifications.

Q26: In which other sectors have women with high education and skill entered?
Ans: Some women have entered various sectors, including:

• Administrative services
• Scientific roles requiring high levels of competence
• Technological jobs that demand advanced skills

These fields benefit from the educationand skills that these women possess. 

Q27: On what factors the quality of population depends?
Ans: The quality of a population is influenced by several key factors:

• The literacy rate of the population.
• The overall health of individuals, often measured by life expectancy.
• The level of skill formation among the people.

These elements collectively contribute to the population's potential and the country's growth. 

Q28: How can population be a liability and how can it be made an asset?
Ans: Population can be a liability or an asset depending on its characteristics.

• An illiterate and unhealthy population is a liability for the economy.
• A literate and healthy population serves as an asset.

Investing in education and healthcare transforms the population into a productive resource, enhancing overall economic growth. 

Q29: How does education play as an important input for human capital formation?
Ans: Education is a vital factor in forming human capital because it:

• Provides new aspirations and opportunities.
• Opens new horizons for personal and professional growth.
• Instills important values that shape character.
• Yields benefits in later years, such as better jobs and higher salaries.

Overall, education enhances both individual and societal development. 

Q30: What are the benefits of vocational education at school level?
Ans: Vocational education at the school level offers several benefits:

• Equips students with practical skills for specific careers.
• Enhances employability by providing job-ready training.
• Encourages students to explore various career paths.
• Promotes a better understanding of the workplace environment.

Q31: Has the literacy rates of population increased since 1951?
Ans: The literacy rates in India have seen a remarkable increase over the years:

• In 1951, the literacy rate was just 18%.
• By 2010-11, this rate had risen to 74%.
• As of 2018, the literacy rate reached 85%.

This growth highlights the progress made in education and access to learning opportunities. 

Q32: Why literacy rate is high among the males of India?
Ans: In India, the high literacy rate among males can be attributed to several factors:

• India's patriarchal society often prioritises male education over female education.
• Social norms and stigma frequently restrict women's access to education, as they are expected to focus on domestic responsibilities.

Investment in education has historically favoured boys, leading to a significant gap in literacy rates between genders.

Q33: What do you know about 'Sarva Siksha Abhiyan'?
Ans: Sarva Siksha Abhiyan is a major initiative aimed at ensuring that all children aged 6 to 14 years receive elementary education by 2010.

• It is a time-bound programme launched by the Central Government.
• The initiative works in collaboration with State governments, local authorities, and communities.
• It focuses on achieving universal access to elementary education.
• Additional measures include bridge courses and back-to-school camps to boost enrolment.
• The mid-day meal scheme has been introduced to improve attendance and nutrition.

Q34: What is the aim of Sarva Shiksha Abhiyan?
Ans: The Sarva Shiksha Abhiyan is a crucial initiative aimed at providing elementary education to all children aged 6 to 14 years. Its key features include:

• Partnership between the central government, states, local governments, and communities.
• A time-bound effort to achieve the universalisation of elementary education.
• Implementation of bridge courses and back-to-school camps to boost enrolment.
• Introduction of the mid-day meal scheme to improve attendance and nutrition.

This initiative is designed to ensure that every child has access to quality education, thereby enhancing the overall literacy rate in the country. 

Q35: Why was mid-day meal scheme launched by the government in the schools?
Ans: The Mid-day Meal Scheme was launched to:

• Encourage attendance in schools.
• Improve the retention of children in education.
• Enhance the nutritional status of students.

These efforts aim to support children's overall development and promote their right to education. 

Q36: What is the strategy of eleventh plan for education and literacy?
Ans: The strategy of the eleventh plan for education and literacy includes:

• Increasing access to education for all.
• Improving the quality of education.
• Adopting state-specific curriculum modifications.
• Promoting vocationalisation of education.
• Enhancing the use of information technology in education.
• Focusing on distance education and the convergence of various educational institutions.

Q37: What is the result of this eleventh plan?
Ans: Over the past 60 years, there has been a notable increase in the number of universities and institutions of higher learning. Key points include:

• The number of colleges rose from 750 in 1950 to 41,435 in 2016.
• University numbers grew from 30 to 753 in the same period.
• Student enrolment increased significantly, reflecting the growing demand for higher education.

This expansion aims to equip more students with essential knowledge and skills for their future careers. 

Q38: What is the benefit of good health?
Ans:  Good health is essential for individuals as it enables them to:

• Realise their potential and capabilities.
• Effectively combat illness.
• Contribute positively to their organisation.

In contrast, poor health can make a person a liability, impacting both their personal well-being and the overall productivity of their workplace.

​​​Q39: What is the national policy of India for health?
Ans: Our national policy focuses on enhancing healthcare access, family welfare, and nutrition services, particularly for the underprivileged. Key aspects include:

• Improving accessibility to healthcare services.
• Prioritising family welfare and nutrition.
• Building a robust health infrastructure over the past five decades.
• Developing skilled manpower in both public and private sectors.

As a result of these efforts, life expectancy has risen to over 67.2 years as of 2021, with significant improvements in health indicators: 

• Infant mortality rate decreased from 147 in 1951 to 28 in 2020.
• Crude birth rates dropped to 20.0 in 2020.
• Death rates fell to 6 in 2020.

These advancements reflect the country's commitment to improving the overall health and well-being of its population. 

Q40: What is the status of 'unemployment'?
Ans: Unemployment occurs when individuals who are willing to work at prevailing wages cannot find jobs.

• It reflects a lack of available employment opportunities.
• Unemployment can lead to economic strain and social issues.
• People who are unemployed may struggle to support their families.
• It is often seen as a sign of a struggling economy.

Q41: What kind of unemployments exists in rural and urban areas?
Ans: In rural areas, there are two main types of unemployment:

• Seasonal unemployment: This occurs when individuals cannot find work during certain months of the year, particularly in agriculture. For example, farmers may have busy periods for sowing and harvesting, but face unemployment during off-seasons.
• Disguised unemployment: This happens when more people are employed than necessary. For instance, a family may have eight members working on a farm that only requires five. The extra three do not contribute significantly to productivity.

In urban areas, the primary issue is: 

• Educated unemployment: Many young people with degrees struggle to find jobs. This includes graduates and post-graduates who are unable to secure employment in their fields.

Q42: When does seasonal unemployment take place?
Ans:  Seasonal unemployment occurs when individuals are unable to find work during specific months of the year. This situation primarily affects those in the agricultural sector, where:

• Work is dependent on seasonal cycles such as sowing and harvesting.
• Certain months offer limited job opportunities, leading to periods of unemployment.

For example, farmers may have plenty of work during harvest time but struggle to find jobs in the off-season. 

Q43: What happens in disguised unemployment?
Ans: In the case of disguised unemployment, individuals seem to be employed but their work is not essential. For example:

• A job may require the efforts of five people, but eight people are engaged.
• The extra three individuals do not contribute significantly to productivity.
• If these three were removed, the overall output would remain the same.

This situation often occurs in agriculture, especially among family members working together. 

Q44: Who are educated unemployed?
Ans: Educated unemployed refers to individuals, particularly youth, who possess educational qualifications such as matriculation, graduation, or post-graduation but struggle to find suitable employment. This phenomenon is prevalent in both rural and urban areas, with the following key points highlighting the issue:

• Many graduates and post-graduates are unable to secure jobs, leading to a rise in educated unemployment.
• This situation results in a waste of valuable human resources, as capable individuals cannot contribute to the economy.
• There is a growing sense of hopelessness among the youth, affecting their mental well-being and financial stability.
• Unemployment can lead to increased economic strain, as the unemployed rely on the working population.

In urban areas, the mismatch between educational qualifications and available jobs is particularly pronounced.

Q45: What is the result of unemployment in a country?
Ans:  Unemployment results in significant issues for a country, including:

• Wastage of manpower: Valuable human resources are not utilised effectively.
• Economic burden: Unemployed individuals become a liability, increasing the financial strain on the working population.
• Decline in quality of life: Families may struggle to meet basic needs, leading to health issues and reduced educational opportunities.
• Social despair: A sense of hopelessness can develop among the youth, impacting their mental well-being.

Overall, unemployment hinders economic growth and indicates a struggling economy. 

Q46: How unemployment has detrimental impact on the overall growth of an economy?
Ans: Unemployment has a negative effect on economic growth for several reasons:

• Indicator of Depression: A rise in unemployment often signals a struggling economy.
• Resource Waste: Unemployed individuals represent a lost opportunity for productive work.
• Economic Liability: When people cannot contribute economically, they become a burden on resources.
• Social Impact: Unemployment can lead to decreased quality of life, health issues, and increased dependency on the working population.
• Education Mismatch: Many educated individuals struggle to find suitable jobs, leading to a paradox of both surplus and shortage in the job market.

Overall, unemployment not only hampers economic progress but also creates social challenges that can affect future generations. 

Q47: Surplus labour in agriculture has moved to which jobs in secondary and tertiary sector?
Ans:  Surplus labour from agriculture has shifted to:

• Secondary sector: Small-scale manufacturing, which employs a significant number of workers.
• Tertiary sector: Emerging services such as biotechnology and information technology.

Q48: Which capital would you consider the best-land, labours, physical capital or human capital?
Ans: Human Capital is the most valuable form of capital because it underpins the effectiveness of other resources.

• Human capital refers to the skills, knowledge, and health of individuals.
• Investment in human capitalthrough education and training leads to:
  • Higher productivity.
  • Increased incomes.
  • Better health outcomes.
• Unlike land or physical capital, human capital can:
  • Utilise resources effectively.
  • Adapt to new technologies.
• A well-educated and healthy population benefits society as a whole, not just individuals.

Q49: What do you understand by 'people as resource'?
Ans: People as resource refers to viewing a country's workforce in terms of their productive skills and abilities. This perspective highlights the potential of the population to contribute to the economy. Key points include:

• The population should be seen as an asset, not a liability.
• Individuals must actively contribute to the economy.
• People provide valuable skills and abilities, transforming them into a resource.

Thus, 'people as resource' essentially means human resource. 

Q50: How is human resource different from other resources like land and physical capital?
Ans: Human resource differs from other resources like land and physical capital in several ways:

• Flexibility: Unlike land and physical resources, which are fixed, human resources can be developed through education and health.
• Impact: Human resources can transform and enhance the value of other resources, while land and capital cannot influence human resources.
• Utilisation: Human resources are essential for effectively using land and capital, which remain inactive without human intervention.

Q51: What is the role of education in human capital formation?
Ans: Education plays a crucial role in forming human capital in several ways:

• Investment in education enhances the skills and knowledge of individuals, contributing to human capital.
• More educated or better-trained individuals tend to have higher productivity, leading to increased earnings.
• Investing in education and health can yield significant returns in the future.

Q52: What is the role of health in human capital formation?
Ans: Health plays a crucial role in the formation of human capital, which benefits both individuals and the economy. Key points include:

• Economic Growth: A developed health sector contributes positively to the economy.
• Increased Productivity: Healthier individuals are able to work more, leading to higher production and earnings.
• Health is Wealth: Good health enhances a person's capacity to work, making them more productive and financially successful.

Q53: Is it true that educated parents invest more heavily on their children's education and why?
Ans: Educated parents tend to invest more in their children's education for several reasons:

• They understand the importance of education for both themselves and their children.
• They are aware of the need for proper nutrition and hygiene.
• They actively support their children's educational and health needs.

This creates a virtuous cyclewhere education leads to better opportunities and outcomes for future generations. 

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Q54: How did countries like Japan become rich?
Ans: Countries like Japan have become rich through several key strategies:

• Investment in people: They prioritised education and health, ensuring a skilled and healthy workforce.
• Efficient resource use: The population effectively utilised available resources, such as land and capital.
• Technological advancement: Innovations developed by the workforce contributed significantly to economic growth.

Q55: What is the role of health in the working life of an individual?
Ans: The role of health in an individual's working life is significant:

• Health enables a person to realise their potential and effectively combat illnesses.
• An unhealthy individual can become a liability for both their organisation and country.
• Good health is essential for achieving personal well-being.