📝 People as a Resource
Economics Question Paper and Answer Key
⏱️ Time: 2 Hours 30 Minutes
📊 Total Marks: 80
📚 Chapter: 2 (People as Resource)
🎓 Class: X (CBSE Economics)
📝 QUESTION PAPER (80 Marks)
Section A: Very Short Answer Questions (1 Mark Each) | Total: 10 Marks
Q1
1 Mark
Define the term 'human capital formation'.
Q2
1 Mark
What do you understand by 'people as a resource'?
Q3
1 Mark
Name any two economic activities in the tertiary sector.
Q4
1 Mark
What is unemployment? (One sentence definition)
Q5
1 Mark
What was India's literacy rate in 1951?
Q6
1 Mark
List any two ways in which human capital is superior to physical capital.
Q7
1 Mark
What is the primary sector? Give one example.
Q8
1 Mark
Define disguised unemployment with an example.
Q9
1 Mark
Name the country that invested heavily in human capital despite having few natural resources.
Q10
1 Mark
What was the infant mortality rate in India in 1951?
Section B: Short Answer Questions (3 Marks Each) | Total: 30 Marks
Q11
3 Marks
Explain the concept of 'human capital formation' and how it differs from 'physical capital formation'.
Q12
3 Marks
Compare and contrast the stories of Sakal and Vilas. What lessons can we learn from their lives?
Q13
3 Marks
Explain why education is an indispensable input for the growth of a country. Give any three reasons.
Q14
3 Marks
How does good health contribute to economic development? Explain with suitable examples.
Q15
3 Marks
Describe the three sectors of the economy with one example each.
Q16
3 Marks
What is seasonal unemployment? In which sector does it occur most and why?
Q17
3 Marks
Explain the concept of 'virtuous cycle' and 'vicious cycle' with respect to human capital formation.
Q18
3 Marks
Why is unemployment considered a 'social waste'? Explain any three negative effects of unemployment.
Q19
3 Marks
What is the difference between economic activities and non-economic activities? Classify these: (a) Sakal working in a firm (b) Sakal playing with his brother (c) Geeta selling fish
Q20
3 Marks
How did Japan become a developed nation despite having very few natural resources? Explain.
Section C: Long Answer Questions (5 Marks Each) | Total: 40 Marks
Q21
5 Marks
Explain why human resource is considered superior to other resources like land and physical capital. Support your answer with the story of Japan or the village story from the chapter.
Q22
5 Marks
"Investment in education and health yields high returns in the form of higher productivity and incomes." Justify this statement using the examples of Sakal and Vilas.
Q23
5 Marks
Analyze the story of the village and explain how human capital formation led to its economic development. List all the economic activities that were created in the village.
Q24
5 Marks
Discuss the relationship between literacy rate, health, and economic growth in India. Use relevant statistics to support your answer.
Q25
5 Marks
Explain the three types of unemployment in India. Why is educated unemployment considered a peculiar problem for India despite having a surplus of educated youth?
Q26
5 Marks
What measures has India taken to improve the quality of population? Discuss any three government initiatives related to education and health.
Q27
5 Marks
Explain why investment in human capital is as important as investment in land and physical capital. Discuss this in the context of India's economic development.
Q28
5 Marks
Compare economic activities and non-economic activities. Why is household work done by women not recognized in national income? What are the implications of this?
✅ ANSWER KEY WITH EXPLANATIONS
Section A: Answers (1 Mark Each)
A1
Human Capital Formation:
Developing the existing human resource by making them more educated, skilled, and healthy through investments in education, training, and medical care.
Key Concept: It's the process of converting population into productive human capital that can contribute to economic growth.
A2
People as a Resource:
It refers to a country's working population viewed in terms of their existing productive skills and abilities. It emphasizes their capacity to contribute to the creation of Gross National Product (GNP).
Positive Perspective: Instead of seeing population as a burden, we see it as an asset with the potential to drive economic development.
A3
Tertiary Sector Activities (Any 2):
- Banking and financial services
- Education and health services
- Trade and commerce
- Transportation and communication
- Tourism and hospitality
A4
Unemployment Definition:
Unemployment exists when people who are willing to work at the prevailing wages cannot find jobs.
A5
India's Literacy Rate in 1951:
18%
Progress: This increased to 85% by 2018, showing significant improvement in human capital development.
A6
Human Capital's Superiority (Any 2):
- Utilization: Human resource can make use of land and capital; land and capital cannot become useful on their own.
- Innovation: People create technology and innovation that enhance productivity of other resources.
- Adaptability: Human capital can adapt to different tasks and situations.
A7
Primary Sector:
Definition: The sector that includes activities dependent on natural resources.
Examples: Agriculture, fishing, forestry, animal husbandry, mining, and quarrying.
A8
Disguised Unemployment:
When people appear to be employed but their contribution does not add to total productivity.
Example: A field requires 5 workers but 8 are working. If 3 leave, output won't change—those 3 are disguised unemployed.
A9
Country: Japan
Achievement: Japan became a developed nation through investments in human capital (education and health), demonstrating that people power can overcome natural resource scarcity.
A10
Infant Mortality Rate (1951):
147 (decreased to 28 by 2020)
Improvement: This shows India's success in improving health infrastructure and reducing child mortality through investments in healthcare.
Section B: Answers (3 Marks Each)
A11
Human Capital vs Physical Capital Formation:
Human Capital Formation: Process of developing people through education, training, and health care. Focuses on improving skills, knowledge, and well-being of population.
Physical Capital Formation: Creation of factories, machinery, infrastructure, and other tangible assets.
Key Difference: Human capital enhances the quality of people; physical capital creates material resources. Both are essential for economic growth.
Why Both Matter: Human capital enables efficient use of physical capital. Educated workers can use modern machinery effectively.
A12
Sakal vs Vilas Comparison:
| Aspect | Sakal | Vilas |
|---|---|---|
| Education | Completed higher secondary + computers | Never attended school |
| Health | Strong and healthy | Suffered from arthritis |
| Income | High (software designer) | Low (fish seller) |
| Contribution | Added value to firm | No skill contribution |
Lessons: Investment in education and health creates opportunities. Lack of investment perpetuates poverty across generations.
A13
Role of Education in Development (3 Reasons):
1. Opens New Horizons: Education provides knowledge and awareness about opportunities and possibilities.
2. Enhances National Income: Educated people are more productive, leading to higher GNP and economic growth.
3. Develops Life Values: Education promotes social awareness, citizenship, and cultural richness among people.
Additional Benefits: Improves governance efficiency, increases earning potential, and breaks the cycle of poverty.
A14
Health's Contribution to Economic Development:
Individual Level: Healthy people can work efficiently, learn better, and maximize their output. Better health → Higher productivity → Higher income.
Business Perspective: Firms prefer healthy workers as they have fewer absences, higher work efficiency, and lower medical costs.
National Level: Healthy population reduces healthcare burden on government, increases workforce participation, and drives economic growth.
Example: India's life expectancy increased from 1951 to 67.2 years by 2021, contributing to a more productive population.
A15
Three Sectors of the Economy:
1. Primary Sector: Deals with natural resources. Example: Farming, fishing, mining
2. Secondary Sector: Involves manufacturing and processing. Example: Textile mills, steel factories, automobile manufacturing
3. Tertiary Sector: Provides services. Example: Banking, education, healthcare, tourism, transportation
Connection: These sectors work together. Primary provides raw materials, secondary processes them, tertiary delivers services to all.
A16
Seasonal Unemployment:
Definition: When people cannot find jobs during certain months of the year due to lack of work in that season.
Sector: Occurs mostly in the Primary Sector (Agriculture)
Reason: Agricultural activities are concentrated in specific seasons—sowing (March-April), weeding (June-July), harvesting (October-November). Other months have little work.
Impact: Agricultural workers face income gaps during off-seasons, affecting their annual earnings and family well-being.
A17
Virtuous Cycle vs Vicious Cycle:
Virtuous Cycle (Positive):
- Educated parents realize importance of education
- They invest heavily in children's education and health
- Children become skilled and earn high income
- They invest in their children's education → Cycle continues positively
Vicious Cycle (Negative):
- Poor, uneducated parents lack resources
- Cannot afford education and health for children
- Children remain uneducated and poor
- Unable to educate their children → Cycle continues negatively
A18
Why Unemployment is a Social Waste (3 Negative Effects):
1. Economic Loss: People who could be productive assets become liabilities. Nation loses potential output and tax revenue.
2. Social Impact: Unemployment causes despair and hopelessness among youth. Leads to crime, depression, and family breakdown.
3. Health & Education Decline: Unemployed families cannot afford proper nutrition and children drop out of school, wasting human potential.
Overall Effect: Unemployment reduces quality of life, hampers economic growth, and creates a cycle of poverty.
A19
Economic vs Non-Economic Activities:
Economic Activities: Activities that produce goods or services, add value to national income, and result in payment/income.
Non-Economic Activities: Activities for personal satisfaction or self-consumption that don't add to national income. (Includes unpaid household work)
Classification:
- (a) Sakal working in a firm = Economic (paid work, adds to output)
- (b) Sakal playing with his brother = Non-Economic (recreation, no income)
- (c) Geeta selling fish = Economic (market activity, generates income)
A20
Japan's Development Despite Resource Scarcity:
1. Investment in Human Capital: Japan invested heavily in education and health despite having few natural resources.
2. Skilled Workforce: Educated and healthy people developed advanced technologies and efficient manufacturing systems.
3. Efficient Resource Use: With limited natural resources, Japanese people innovated to maximize efficiency and minimize waste.
4. Technological Innovation: The trained workforce created technology and systems that made Japan competitive globally.
Lesson: Japan proves that human capital is more valuable than natural resources. People power can transform any nation into a developed economy.
Section C: Answers (5 Marks Each)
A21
Why Human Resource is Superior to Other Resources:
Core Principle: Human resource can make use of land and capital, but land and capital cannot become useful on their own.
1. Active vs Passive Resources: Land and machinery are passive—they need human effort to be productive. People are active and can utilize any resource effectively.
2. Innovation & Adaptation: People create new technologies, improve processes, and adapt to changes. Other resources cannot innovate themselves.
3. Japan's Example: Japan has minimal natural resources yet became a developed nation by investing in education and health, creating a skilled workforce that developed advanced technology. This proves people are the most important resource.
4. Multiplier Effect: Well-educated, healthy people don't just work—they train others, create businesses, innovate, and contribute to society in many ways.
Conclusion: Human capital is the foundation of development. Without it, land becomes wasteland and machinery stays idle.
A22
Investment in Education & Health Yields High Returns - Justified with Sakal & Vilas:
Sakal's Case - Returns on Investment:
- Parents invested: Formal education + vocational training in computers
- Health investment: Remained physically strong
- Returns: Got job in private firm, designed innovative software, promoted
- Result: High income + contribution to firm's growth
Vilas's Case - Lack of Investment:
- No investment: Could not afford school due to poverty
- Health neglected: Arthritis but no medical care
- Returns: Limited to fish selling, meager income like his mother
- Result: Trapped in poverty, no skills, no growth
Comparison: Sakal's education and health investment resulted in skilled labor with high productivity. His contribution to the firm created value—he designed software that increased sales. Vilas, without education, could only perform unskilled work with minimal productivity.
Proof of High Returns: Sakal's years of education and health enhanced the quality of his labor, making him 10-20 times more productive and earning than Vilas. This is direct evidence of returns on human capital investment.
Economic Principle: Just like investing Rs 100 in a bank gives returns, investing in education and health gives returns in the form of higher productivity, income, and contribution to society.
A23
Village Story - Human Capital Formation Leading to Economic Development:
Initial Situation: Village families produced only enough for self-consumption. No jobs, no surplus, isolated economy.
Step 1 - First Investment: One family invested in sending son to agriculture college. He returned as agro-engineer and designed improved plough.
- Job Created: Agro-Engineer
- Result: Increased wheat yield, family earned surplus profit
Step 2 - Community Response: Inspired by success, village opened a school and recruited teacher.
- Job Created: Teacher
- Result: All children now educated, improving community's human capital
Step 3 - Skills Development: One girl trained in tailoring and started stitching clothes for villagers.
- Job Created: Tailor
- Result: Farmers saved time (previously traveled for clothes), spent more time farming, increased yield further
Final Result - Economic Transformation:
- Village evolved from subsistence economy to market economy
- Multiple jobs created (agro-engineer, teacher, tailor, eventually traders, merchants)
- Surplus production led to trade with neighboring villages
- Prosperity increased, attracting more skilled people
Economic Activities Created: (1) Agro-engineering, (2) Teaching, (3) Tailoring, (4) Agriculture (improved), (5) Trade & Commerce
Key Learning: Small investments in human capital create multiplier effects. One educated person creates opportunities for many, transforming entire communities.
A24
Relationship: Literacy, Health, and Economic Growth in India:
Connection 1 - Literacy → Economic Growth:
Literate people can acquire skills, use technology, and innovate. They earn higher incomes and contribute more to GNP.
Statistical Evidence:
- 1951: Literacy only 18% - India was developing country
- 2018: Literacy 85% - India became middle-income country
- This shows correlation between literacy improvement and economic development
Connection 2 - Health → Economic Growth:
Healthy workers are more productive, miss fewer days, and earn higher income. This increases output and GDP.
Statistical Evidence:
- Life Expectancy (1951): Low, many people died young
- Life Expectancy (2021): 67.2 years - more working-age years, more productivity
- IMR (1951): 147 - high mortality
- IMR (2020): 28 - survival rate improved, larger workforce potential
Connection 3 - Combined Effect:
Literate, healthy population → Higher productivity → Higher income → More tax revenue → Government invests in more education/health → Further economic growth → Development
India's Achievement: By investing in Samagra Shiksha scheme, mid-day meal scheme, and health infrastructure, India improved both literacy and health, contributing to economic growth and emergence as a major economy.
Conclusion: Literacy and health are not just social goals but economic necessities. They are the foundation of sustainable economic growth.
A25
Three Types of Unemployment in India:
1. Seasonal Unemployment (Rural Areas)
- Definition: People cannot find jobs during certain months due to seasonal nature of work
- Sector: Primary (Agriculture) - concentrated in harvest/sowing seasons
- Example: Agricultural workers idle from January to March
2. Disguised Unemployment (Rural Areas)
- Definition: People appear employed but their contribution is negligible
- Sector: Agriculture - 5 workers needed but 8 employed
- Example: Extra 3 workers could leave without affecting output
3. Educated Unemployment (Urban Areas)
- Definition: Degree holders (10th, graduate, post-graduate) cannot find suitable jobs
- Sector: Tertiary (Services) - mismatch of skills and jobs
- Example: Graduate wants job but lacks technical skills required
Why Educated Unemployment is Peculiar for India:
The Paradox: India has surplus of educated people but shortage of technical skills required for economic growth.
Reasons:
- Education-Skill Mismatch: Graduates have theoretical knowledge but lack practical/technical skills that industries need
- Quality vs Quantity: Many attend school but don't learn well due to poor teaching quality
- Inflexible Education System: School curriculum doesn't match job market demands
- Limited Job Creation: Tertiary sector hasn't created enough jobs despite surplus graduates
- Geographic Mismatch: Jobs are in metros but graduates are spread across country
Impact: This is a social waste—educated people are frustrated and underutilized. Society loses their potential contribution.
A26
India's Measures to Improve Quality of Population:
Education Initiatives (3):
1. Samagra Shiksha Scheme: Ensures inclusive, equitable quality education from pre-school to secondary stage. Focus on universal access, retention, and gender equality (especially girls' education).
2. Navodaya Vidyalaya Program: Established pace-setting schools in each district to provide quality education to rural children and prepare them for higher studies.
3. Mid-Day Meal Scheme: Provides nutritious meals to school children, improving attendance, retention, and nutritional status.
Impact: Literacy increased from 18% (1951) to 85% (2018). Education expenditure rose to 3.1% of GDP in 2019-20.
Health Initiatives (3):
1. Healthcare Infrastructure: Built vast network of dispensaries, health centers, and hospitals with qualified doctors and nursing staff.
2. Public Health Programs: Vaccination campaigns, maternal care, child health programs reducing IMR from 147 (1951) to 28 (2020).
3. Family Welfare Programs: Nutritional support, immunization, and awareness about hygiene and health practices.
Impact: Life expectancy increased to 67.2 years (2021). Birth and death rates improved significantly.
Combined Effect: These initiatives work together—educated parents understand importance of health; healthy children can learn better. Quality of population improves, driving economic growth.
A27
Why Investment in Human Capital is as Important as Land & Physical Capital:
1. Core Principle - Utilization: Land cannot farm itself, machines cannot operate themselves. It is educated, skilled people who make these resources productive. Human capital is therefore the catalyst that activates all other resources.
2. Technology & Innovation: Physical capital becomes outdated. But people continuously innovate and create new technology. India's IT revolution (worth billions) came from human capital, not from natural resources.
3. India's Context - Green Revolution: India's land (natural resource) remained same, but when human capital improved (better farming technology, education of farmers), productivity increased dramatically.
4. Long-term Returns: Land is finite and depreciates, machinery wears out. But human capital grows exponentially—one educated person educates many, creating multiplier effect.
5. Global Competitiveness: Countries compete on innovation and skilled workforce, not on natural resources. India's IT services industry (human capital) earns more than our mining/agriculture (natural capital).
In India's Context: India invested in human capital through education and health → Skilled workforce created in IT, services sector → India became global economic power → Can now invest in physical capital and land development.
Conclusion: Human capital is not just important—it is THE MOST important resource. It determines how effectively all other resources are used.
A28
Economic vs Non-Economic Activities & Women's Work:
Difference Between the Two:
Economic Activities: Production of goods/services that add value to national income. Payment is received. Examples: Farming, teaching, manufacturing, banking.
Non-Economic Activities: Activities for self-consumption or personal satisfaction. No payment received. Examples: Cooking, cleaning, raising children, housework.
Problem: Women's Household Work Not Recognized:
Sheela (Sakal's mother) cooks, cleans, washes clothes, cares for children—critical for family survival. Yet this work:
- Is not paid
- Is not included in National Income calculation
- Is not recognized as 'work' by society
- Reduces women's economic status
Implications of This Non-Recognition:
1. Economic Invisibility: Women's contribution to family and society is not counted in GDP, making them appear economically inactive.
2. Power & Dependence: Unpaid work reduces women's bargaining power. They depend on male family members financially.
3. Limited Opportunities: Time spent on household work limits women's education and skill development, restricting their career choices.
4. Income Disparity: Even when women work (like Geeta selling fish), they earn less because society undervalues their skills and education.
5. Social Inequality: Non-recognition perpetuates gender inequality and reduces women's autonomy and decision-making power.
6. Underutilization of Human Capital: Talented women remain at home doing unpaid work instead of contributing to economy.
Solution: Recognizing and valuing women's household work, providing education opportunities, and creating flexible employment options can unlock this untapped human capital and boost economic growth.
Key Point: When women with education and skills enter the labor market, they earn at par with men and contribute significantly to economic development—proving their potential when given opportunity.
