write about social effect from chapter "people as resources "
Answers
Answer:
Explanation:
Population becomes human capital when there is investment made in the form of education, training and medical care. Human capital is the stock of skill and productive knowledge embodied in them. People as a resource are a way of referring to; a country’s working people in terms of their existing productive skills and abilities.
(a) Human Capital formation:
When the exiting ‘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 (though education, training, medical care) yields a retum just like investment in physical capital’.
(i) It increases the productivity of the workers.
(ii) Educated, trained and healthy people can use natural resources in a better way.
(iii) It adds to quality of labor.
(iv) A country can earn foreign exchange by exporting services.
(b) Human resources is different from other resources like land and physical capital:
Land consists of all natural resources. These are provided to us by nature. Physical capital consists of all those objects that help in further production of different type of goods and services. Human resource, on the other hand, consists of knowledge and skills. Other resources are not capital of brining about an improvement in they by their own effort; they can be changed only by human resources. They do not have a mind and a brain of their own. Human resources, on the other hand, can be trained to perform any task for which it is required. It required education, trained and health care. These, in turn, are again provided by human resources. Thus, human resources, unlike other factor resources, has an ability to improve itself.
(c) “Population is an asset fo4 the economy rather then a liability”:
Population, for long, had been seen as a liability which slows down the rate of economic growth. This view of population was based on the fact that population represented the stock of human being. Human beings make a demand on nation’s resources for their survival. Larger the population more the resources like, food, health facilities, etc., would be required by it for its survival. Hence, population would be treated as a liability. However, this view of population is not the correct one. More important thing is that population is the source of supply of the most important factor resource, i.e., human capital. It is human capital that organizes the population activity and makes other factor resources work. It is in this sense that the stock of knowledge and skills that constitutes human resource is a valuable asset. However it may be noted that unless human beings are converted into human resource they may constitute a liability.
(d) Importance of Human Capital Formation:
Investment in human resource (vie education and medical care) can give high rates of rates of rates in the future. This investment on people is the same as investment in land capital.
(e) Virtuous cycle of human development:
Educated parents are found to invest more heavily on the education of their child. This is because they have realized the importance of education themselves. They are also conscious of proper nutrition and hygiene. They accordingly look after their children’s needs for education at school and good health. a virtuous cycle is thus created in this case. a vicious cycle may be created by disadvantaged parents who, themselves uneducated and lacking in hygiene, keep their children in a similarly disadvantaged state.
‘’ countries like Japan did not have any natural resources; still they are developed countries’.
They have invested on people especially in the field of education and health.
The skilled and trained people have made efficient use of other resources like land and capital. Efficiency and technology evolved by people have made these countries rich/ developed.
ECONOMIC ACTIVITIES BY MEN AND WOMEN
All the activities which contribute to the flow of goods and services in the economy are called economic activities. These activities add value to the national income. Economic activities have two parts
(i) Market Activities: Market activities involve remuneration to anyone who performs i.e., activity performed for money or profit. These include production of goods and services including government service.
(ii) Non-market activities are the production for silf-consumption. These can be consumption and processing of primary product and own account production of fixed assets.
(a) Economic activities and Non- Economic Activities:
(a) Economic activities and Non-Economic Activities :
Economic Activities :
(i) Economic activities contribute to the flow of goods and services in an economy.
(ii) If there is an increase in productive activities that means economy is progressing.
(iii) Economic activities lead to an increase in the personal income as well as the national income.