People as Resource 

Q44. What is the role of health in human capital formation?

Ans. The health of a person helps him to realise his potential and the ability to fight illness. An unhealthy person becomes a liability for an organization indeed; health is an indispensable basis for realising one’s well-being. Henceforth, improvement in the health status of the population has been the priority of the country. Our national policy, too, aims at improving the accessibility of health care, family welfare and nutritional service with a special focus on the under-privileged segment of population.

Q45. In which field do you think India can build the maximum employment opportunity?

Ans. Agriculture is the most labour absorbing sector of the economy. In recent years, there has been a decline in the dependence of population on agriculture partly because of disguised unemployment. In the secondary sector, small scale manufacturing is the most labour absorbing. In case of the tertiary sector, various new services are now appearing like biotechnology, information technology and so on. Thus, India can build maximum employment opportunity in secondary sector.

Q46. How did Japan emerge as a developed country in spite of its poor natural resources?

Ans. Countries like Japan have invested in human resource. They did not have any natural resource. These countries are developed/rich countries. They import the natural resource needed in their country. They have invested on people especially in the field of education and health. These people have made efficient use of other resource like land and capital. Efficiency and the technology evolved by people have made these countries rich/developed.

Q47. What is the difference between economic activities and non-economic activities?

Ans. Economic activities - The activities that add value to the national income are called economic activities. Economic activities have two parts — market activities and non-market activities. Market activities involve remuneration to anyone who performs i.e., activity performed for pay or profit.  Non-market activities are the production for self-consumption.

Non-economic activities - The activities that add no value to the national income are called non-economic activities. Example: The household work done by women.

Q48. What are the benefits of investment in human capital?

Ans. Benefits of investment in human capital are:

1. Higher incomes earned by people.
2. Investment in human capital will lead to higher productivity of healthier people.
3. Education and skill are the major determinants of the earning of any individual in the market.
4. People have made efficient use of other resource like land and capital.
5. People turn into productive asset.

Q49. What is the role of education in human capital formation?

Ans. Educated people find jobs while uneducated people continue with the same work as their parents. They earn meagre income like their parents, which is just enough to support their family. Several years of education adds to the quality of labour. This enhances their total productivity. Total productivity adds to the growth of the economy. This in turn pays an individual through salary or in some other form of his choice. With investments made on her education and health, one can yield a high return in the future in the form of higher earnings and greater contribution to society.