Class 9 Exam  >  Class 9 Notes  >  Social Studies (SST) Class 9  >  Detailed Chapter Notes - People as Resources

Class 9 Economics Chapter 2 Notes - People as Resource


People as Resource aims to illustrate how the population serves as an economic asset, not a liability. Through investments in education, training, and medical care, the population is transformed into human capital—a reservoir of skills and productive knowledge.  

Human Capital Formation

  • Educated and healthier individuals not only experience higher incomes but also contribute to society in indirect ways. 
  • The advantages of education and health spread to those who were not directly educated or provided healthcare.Class 9 Economics Chapter 2 Notes - People as Resource
  • Human capital is emphasized as superior to other resources like land and physical capital because it can actively utilize these resources. Unlike land and capital, human resources can make themselves useful and contribute to economic growth.
  • Education and health investments enhance the quality of labour, leading to increased productivity and contributing to economic growth.

Formation of human capital

  1. It increases the productivity of the workers.
  2. Educated, trained, and healthy people can use natural resources in a better way.
  3. It adds to the quality of labour.
  4. A country can earn foreign exchange by exporting services.

Examples: The Green Revolution and IT Revolution in India illustrate how knowledge input significantly enhances productivity, showcasing the pivotal role of human capital over material and machinery. 

Sakal's Story

Sakal, a twelve-year-old from Semapur, faced financial challenges but had supportive parents who valued education.

Educational Journey:

  • Sakal joined the village school.
  • Completed higher secondary education.
  • Pursued vocational training in computers with a loan.
  • Secured a job in a private firm.
  • Designed innovative software, boosting sales.
  • Received recognition and promotion.

Impact of Education:

  • Enhanced productivity and total economic growth.
  • Higher income due to education and innovation.

Stories of Vilas and SakalStories of Vilas and Sakal

Vilas's Story

Vilas, living in the same village, had a different reality with financial struggles and limited opportunities.

Economic Struggles:

  • Single-parent household, earning meagre income from selling fish.
  • Vilas developed arthritis; no access to healthcare.

Lack of Educational Opportunities:

  • Unable to attend school due to financial constraints.
  • He continued low-skilled work like his mother.

Contrasting Outcomes:

  • Economic hardships and limited opportunities for Vilas.
  • Lack of investment led to a cycle of low productivity.


Sakal's education and skills led to economic success where as Vilas faced economic challenges due to the absence of education and health care.

Virtuous and Vicious Cycles

  • A virtuous cycle is described, where educated parents invest heavily in their child's education and health, creating a positive impact. 
  • In contrast, disadvantaged parents may create a vicious cycle, perpetuating a similar disadvantaged state for their children.
  • The example of countries like Japan highlights that investing in human resources, despite lacking natural resources, contributes to their development. 
  • These countries efficiently use other resources like land and capital, facilitated by the efficiency and technology evolved through investments in people.

Question for Detailed Chapter Notes - People as Resources
Try yourself:
How does human capital formation contribute to economic growth?
View Solution

Economic Activities by Men and Women

People, like Vilas and Sakal, engage in various economic activities classified into three sectors: primary, secondary, and tertiary.

Classification of Economic Activities

  • Primary Sector: Involves agriculture, forestry, animal husbandry, fishing, poultry farming, mining, and quarrying.
  • Secondary Sector: Encompasses manufacturing activities.
  • Tertiary Sector: Includes trade, transport, communication, banking, education, health, tourism, services, insurance, etc. Contributes to the production of goods and services, adding value to national income.

Class 9 Economics Chapter 2 Notes - People as Resource

Market and Non-Market Activities

  • Market Activities: Involve remuneration for services performed, such as the production of goods or services.
  • Non-Market Activities: Include production for self-consumption, like processing primary products or own account production of fixed assets.

Question for Detailed Chapter Notes - People as Resources
Try yourself:
What activities are included in the tertiary sector?
View Solution

Gender Roles and Economic Activities

Historical Division of Labour

  • The traditional division between men and women in economic activities is due to historical and cultural reasons.
  • Women are often responsible for domestic chores, while men engage in fieldwork.

Unpaid Contributions

  • Women's domestic work is not recognized in the National Income.
  • Example: Sakal's mother, Sheela, handles household duties without remuneration.

Market Entry

  • Women are paid when they enter the labour market, with earnings determined by education and skills.
  • Disparities exist; women with lower education often earn less and face job insecurity.

Challenges in Women's Employment:

  • Employment sectors lack legal protection, maternity leave, childcare, and social security.
  • High education and skill formation enable women to achieve pay parity with men, especially in fields like teaching and medicine.

Quality of Population

  • The quality of the population depends on literacy rate, life expectancy, and skill formation.
  • Literate and healthy populations are considered assets for a country.

Question for Detailed Chapter Notes - People as Resources
Try yourself:
What is one reason why women's domestic work is not recognized in the National Income?
View Solution


Education enhances national income, cultural richness, and governance efficiency.

  • Efforts include universal access, retention, and quality in elementary education, with special emphasis on girls.
  • Establishment of pace-setting schools like Navodaya Vidyalaya in each district.
  • Development of vocational streams for high school students.

Budgetary Allocations and Expenditure

  • Plan outlay on education increased from Rs 151 crore in the first plan to Rs 99,300 crore in 2020–21.
  • Expenditure on education as a percentage of GDP rose from 0.64% in 1951–52 to 3.1% in 2019–20 (B.E.).
  • However, there is a decline to 2.8% in 2020–21 (B.E.), as per the Budget Documents of Union State Governments and the Reserve Bank of India.

Trends in Literacy Rates In Post-Independent IndiaTrends in Literacy Rates In Post-Independent India

Literacy Rates and Disparities

  • Over the years, literacy rates have shown a commendable upward trend, reaching 85% in 2018. 
  • Literacy is acknowledged not just as a fundamental right but also as a prerequisite for citizens to effectively fulfil their duties and enjoy their rights. 
  • However, gender and regional disparities persist, with males exhibiting a 16.1% higher literacy rate than females. 
  • Urban areas also show a 14.2% advantage over rural areas, emphasizing the need for targeted interventions to bridge these gaps.

Challenges in Primary Education

  • While the expansion of the primary school system to over 7,78,842 lakh in 2019–20 reflects a positive stride, concerns arise over the dilution of educational quality and high dropout rates. 
  • The implementation of initiatives like Sarva Siksha Abhiyan, with elements such as bridge courses, back-to-school camps, and the mid-day meal scheme, aims to counter these challenges, striving for universal elementary education.

Higher Education Scenario

  • In the realm of higher education, the Gross Enrolment Ratio (GER) for the age group of 18 to 23 years reached 27% in 2019–20, aligning broadly with the world average. 
  • The strategic focus revolves around increasing access, ensuring quality, modifying curricula to suit state-specific needs, encouraging vocationalization, and embracing information technology. 
  • Noteworthy is the emphasis on distance education and the convergence of various education formats, encompassing formal, non-formal, distance, and IT education institutions.

Question for Detailed Chapter Notes - People as Resources
Try yourself:
What is the current expenditure on education as a percentage of GDP in India?
View Solution


  • In the pursuit of profit maximization, firms place a significant emphasis on workforce efficiency. 
  • The selection of employees with optimal health is crucial for ensuring productivity and achieving organizational goals. 
  • The premise is that individuals in good health are better positioned to contribute effectively to the overall growth and success of the organization.

Significance of Health

  • Good health enables individuals to realize their potential and effectively contribute to organizational growth.
  • Healthy individuals can maximize their output, positively impacting overall organizational performance.

Health Infrastructure in India

  • National Policy Focus: The national policy emphasizes improving healthcare access and services, focusing on the underprivileged.
  • Infrastructure Development: Over the last five decades, India has built extensive health infrastructure in the government and private sectors. Manpower development spans primary, secondary, and tertiary sectors.

Health Progress Indicators

  • Life Expectancy: Increased life expectancy to over 69.4 years in 2016.
  • Infant Mortality Rate (IMR): IMR reduced from 147 in 1951 to 36 in 2020.
  • Crude Birth Rates: Dropped to 20.0 (2018).
  • Death Rates: Reduced to 6.2 (2018).

Healthcare Disparities and Infrastructure Gaps

  • Despite progress, healthcare disparities persist in various regions of India. Many areas lack even basic healthcare facilities. 
  • The availability of medical and dental colleges is unevenly distributed, with only 542 medical colleges and 313 dental colleges nationwide. 
  • States such as Andhra Pradesh, Karnataka, Maharashtra, and Tamil Nadu host a concentration of medical colleges, revealing regional imbalances in healthcare infrastructure.

Question for Detailed Chapter Notes - People as Resources
Try yourself:
Why do firms place emphasis on selecting employees with optimal health?
View Solution


Unemployment is characterized by the inability of willing individuals to secure jobs at prevailing wages. It is crucial to differentiate between those not seeking employment and those facing challenges in finding suitable opportunities. In India, both rural and city areas face unemployment, but the reasons differ. 

Class 9 Economics Chapter 2 Notes - People as Resource

Impact of Unemployment

  • Wastage of Manpower Resource: Converts potential assets into liabilities for the economy. Creates a feeling of hopelessness and despair among the youth.
  • Economic Overload: Increases dependence on the working population. Adversely affects the quality of life for individuals and society.
  • Social Consequences: Decline in health status, withdrawal from the school system, and general despair.
  • Indicator of a Depressed Economy: An increase in unemployment signals economic challenges.

Types of Unemployment

  • Seasonal Unemployment: In rural areas, seasonal unemployment is prevalent, particularly among those dependent on agriculture. Certain months witness reduced agricultural activities, leading to temporary job scarcity for these individuals.

  • Disguised Unemployment: Disguised unemployment, common in family-based agricultural settings, gives the appearance of employment. However, surplus workers engage in activities that do not significantly contribute to productivity, highlighting the inefficiencies in resource utilization.

  • Educated Unemployment (Urban): Urban areas witness a paradoxical situation where educated individuals, even with matriculation, graduation, or post-graduate degrees, struggle to find suitable employment. This creates a coexistence of surplus manpower in certain categories and a shortage in others.

Question for Detailed Chapter Notes - People as Resources
Try yourself:
What type of unemployment is prevalent in rural areas?
View Solution

Statistical Perspective

  • While official statistics may indicate low unemployment rates, many individuals with low income and productivity are considered employed. 
  • Forced work for subsistence rather than by choice is prevalent, contributing to the statistical landscape.

Disguised Unemployment in Agriculture

  • The agriculture sector in India experiences disguised unemployment, with self-employment characterized by surplus labour. 
  • Despite shared work and produce among family members, surplus labour eventually migrates from villages in search of alternative job opportunities.

Story of a Village

Transformation through Education: A family's decision to send a son to an agriculture college becomes a catalyst for change. Improved agricultural technology, education, and training in tailoring create new jobs, contributing to a prosperous village with diverse economic activities.

Positive Economic Impact: Investments in education lead to positive economic outcomes, job creation, and overall community well-being. The story of the village exemplifies the transformative power of education in elevating local economies.

The document Class 9 Economics Chapter 2 Notes - People as Resource is a part of the Class 9 Course Social Studies (SST) Class 9.
All you need of Class 9 at this link: Class 9
50 videos|413 docs|87 tests

FAQs on Class 9 Economics Chapter 2 Notes - People as Resource

1. What are economic activities?
Ans. Economic activities refer to any human activity that involves the production, distribution, or consumption of goods and services to satisfy human wants and needs. These activities can include farming, manufacturing, trading, and providing services.
2. How do gender roles impact economic activities?
Ans. Gender roles play a significant role in determining the types of economic activities individuals engage in. Traditionally, men have been associated with activities like agriculture, industry, and business, while women have been primarily engaged in domestic work and informal sectors. This division of labor often leads to gender disparities in income, access to resources, and opportunities for economic growth.
3. What factors determine the quality of population?
Ans. The quality of population refers to the overall health, education, skills, and productivity of a population. Several factors contribute to determining the quality of population. These include access to healthcare, nutrition, education, vocational training, employment opportunities, and social support systems. A high-quality population is essential for sustainable economic development and social progress.
4. How does unemployment affect the economy?
Ans. Unemployment refers to the situation when individuals who are willing and able to work are unable to find employment. It has several adverse effects on the economy. Firstly, it leads to a loss of productive potential as unemployed individuals are not contributing to the production of goods and services. Secondly, it reduces consumer spending, which is a crucial driver of economic growth. Additionally, unemployment can lead to social and psychological problems, increased poverty, and inequality.
5. What are some strategies to reduce unemployment?
Ans. There are several strategies that can be employed to reduce unemployment. These include: 1. Promoting economic growth: Encouraging investment, innovation, and entrepreneurship can stimulate job creation and reduce unemployment rates. 2. Enhancing skill development: Providing vocational training programs and improving access to education can equip individuals with the skills needed for available jobs, thereby increasing their employability. 3. Implementing labor market reforms: Creating a flexible labor market through policies that encourage job creation, reduce labor market rigidities, and provide fair employment conditions can help reduce unemployment. 4. Supporting entrepreneurship: Offering support and incentives for entrepreneurship can encourage the creation of new businesses, which in turn generates employment opportunities. 5. Providing social safety nets: Establishing social safety nets, such as unemployment benefits and job placement services, can provide temporary support to unemployed individuals and help them find suitable employment.
50 videos|413 docs|87 tests
Download as PDF
Explore Courses for Class 9 exam
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
10M+ students study on EduRev
Download the FREE EduRev App
Track your progress, build streaks, highlight & save important lessons and more!
Related Searches



Extra Questions


Previous Year Questions with Solutions




Viva Questions




past year papers


video lectures


Semester Notes


study material


Objective type Questions


Sample Paper


Important questions


Class 9 Economics Chapter 2 Notes - People as Resource


practice quizzes




shortcuts and tricks




Class 9 Economics Chapter 2 Notes - People as Resource


Class 9 Economics Chapter 2 Notes - People as Resource


mock tests for examination