People as Resource ||Economics|| Chapter 2 Notes
Overview
We will study and discuss about these terms:
(i) Human capital
(ii) Gross National Product
(iii) Human capital formation
(iv) Advantages of a more educated or a healthier population
(i) Human capital
(ii) Gross National Product
(iii) Human capital formation
(iv) Advantages of a more educated or a healthier population
Economic Activity by Men and Women
• Economic activities are development and wealth producing activities. It creates economic and financial gain by producing goods and services and adds value to the national income.
Classification of Economic Activities:
- Primary Sector: Includes activities like agriculture, forestry, animal husbandry, fishing, poultry farming, mining, and quarrying.
- Secondary Sector: Involves manufacturing and industrial activities.
- Tertiary Sector: Encompasses services such as trade, transport, communication, banking, education, health, tourism, and insurance.
Market and Non-Market Activities:
- Market Activities: These are performed for pay or profit, including the production of goods and services.
- Non-Market Activities: These are performed for self-consumption, like household chores.
Gender Roles:
- Traditionally, men are involved in market activities and are paid for their work.
- Women often engage in non-market activities, such as household chores, which are not recognized in national income calculations
- Women with higher education and skills can participate in market activities and earn wages similar to men.
5. Impact of Education and Skills:
- Education and skill development are crucial for better economic opportunities.
- Women with higher education and skills tend to have better job opportunities and wages.
Quality of Population
Quality of population is mainly in literacy rate and health of the population. Literate and healthy populations are asset for a country.
(i) Education
• Education is the process of learning for acquisition of knowledge. It is an important input for growth of a person.
• Development of a country is basically depended on literacy rate. When a person is educated, then a family can be educated. After that, society can be educated and hence literacy rate of the country can increase.
• An educated person can earn more income compared than an uneducated person because of their skill. For this term, National income of a country can increase.
• An educated person can earn more income compared than an uneducated person because of their skill. For this term, National income of a country can increase.
• Governance efficiency can also be enhanced through learning process.
(ii) Health
• An unhealthy person is burden for a country in terms of economics. A healthy mind create healthy environment. For development of a country, healthy environment is compulsory.
• In India, states like Bihar and Uttar Pradesh have few medical colleges. These states have poor health conditions.
(ii) Health
• An unhealthy person is burden for a country in terms of economics. A healthy mind create healthy environment. For development of a country, healthy environment is compulsory.
• In India, states like Bihar and Uttar Pradesh have few medical colleges. These states have poor health conditions.
• On the other hand, four states Karnataka, Andhra Pradesh, Tamil Nadu and Maharashtra have majority in number of medical colleges with 81 medical colleges out of 181.
• In India, infant mortality rate has come down from 147 in 1951 to 34 in 2016.
• Crude birth rates have dropped to 20.4 and death rates to 6.4 in 2016.
• Crude birth rate is the number of living births occuring in a given geographical area per 1,000.
• Crude birth rates have dropped to 20.4 and death rates to 6.4 in 2016.
• Crude birth rate is the number of living births occuring in a given geographical area per 1,000.
Unemployment
Definition:
- Unemployment occurs when people who are willing and able to work at the prevailing wage rate cannot find jobs.
Types of Unemployment:
- Seasonal Unemployment: Occurs when people are unemployed at certain times of the year, typically in agriculture.
- Disguised Unemployment: When more people are employed than actually needed. For example, in a family farm, all members might be working, but not all are required.
- Educated Unemployment: When educated individuals cannot find jobs that match their qualifications.
Causes of Unemployment:
- Rapid Population Growth: Leads to more people seeking jobs than available.
- Slow Economic Growth: Insufficient economic development to create enough jobs.
- Seasonal Nature of Agriculture: Agriculture being a major sector, its seasonal nature leads to unemployment during off-seasons.
- Technological Changes: Automation and new technologies can reduce the need for human labor.
Impact of Unemployment:
- Economic: Leads to lower income and reduced standard of living.
- Social: Can cause frustration and stress, leading to social unrest.
- Political: High unemployment can lead to political instability.
Measures to Reduce Unemployment:
- Education and Training: Improving the quality of education and vocational training to make people more employable.
- Economic Reforms: Policies to stimulate economic growth and create jobs.
- Support for Small and Medium Enterprises (SMEs): Encouraging entrepreneurship and supporting SMEs to create more jobs.