CBSE Class 9 Economics People as Resource

Overview

The chapter 'People as Resource' is an

effort to explain population as an asset

for the economy rather than a liability.

Population becomes human capital when

there is investment made in the form of

education, training and medical care.

In fact, human capital is the stock of

skill and productive knowledge embodied

in them.

'People as Resource' is a way of

referring to a country’s working people

in terms of their existing productive

skills and abilities. Looking at the

population from this productive aspect

emphasises its ability to contribute to

the creation of the Gross National

Product. Like other resources population

also is a resource — a 'human resource'.

This is the positive side of a large

population that is often overlooked when

we look only at the negative side,

considering only the problems of

providing the population with food,

education and access to health facilities.

When the existing 'human resource' is

further developed by becoming more

educated and healthy, we call it 'human

capital formation' that adds to the

productive power of the country just like

'physical capital formation'.

Investment in human capital

(through education, training, medical

care) yields a return just like investment

in physical capital. This can be seen

directly in the form of higher incomes

earned because of higher productivity

of the more educated or the better trained

persons, as well as the higher

productivity of healthier people.

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