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I. Chapter Summary:

This chapter introduces the concept of human beings as a resource, a productive asset when properly educated and skilled. It explores how investment in human capital (through education, health, and training) can lead to economic growth. It distinguishes between economic and non-economic activities and discusses the unemployment problem in India, including types and measures to overcome it.

II. Key Concepts Covered:

Concept	Explanation
Human Capital	The stock of skill, knowledge, and experience in a population.
Economic Activities	Activities contributing to the national income, e.g., farming, teaching.
Non-Economic Activities	Activities not contributing to income, e.g., domestic chores.
Market vs Non-Market	Paid labor (market) vs. unpaid services (non-market).
Unemployment	Situation where people willing to work at prevailing wages can’t find jobs.
Types of Unemployment	Seasonal, disguised, educated.
Importance of Education & Health	They improve productivity and efficiency.
Quality of Population	Measured by literacy rate, life expectancy, and health indicators.

III. Important Questions:

(A) Multiple Choice Questions (1 Mark):

1. Human capital is superior to other resources because:
   a) It is abundant
   b) It is intelligent ✅
   c) It is cheap
   d) It is found in every country
2. Which sector is associated with activities like agriculture?
   a) Secondary
   b) Tertiary
   c) Primary ✅
   d) Quaternary
3. Disguised unemployment is found mostly in:
   a) Factories
   b) Mines
   c) Agricultural fields ✅
   d) Transport
4. Which is a non-economic activity?
   a) Farming
   b) Tailoring
   c) Housework by mother ✅
   d) Shopkeeping

(B) Short Answer Questions (2/3 Marks):

1. What is the difference between economic and non-economic activities?
2. Define human capital. How is it different from other forms of capital?
3. What do you understand by disguised unemployment?
4. How does education contribute to human capital formation? (PYQ 2020)

(C) Long Answer Questions (5 Marks):

1. Explain how investment in human capital contributes to the development of a country. (PYQ 2019)
2. Describe the various types of unemployment found in India.
3. Why is educated unemployment a peculiar problem in India?
4. How does health contribute to the formation of human capital?

(D) HOTS (Higher Order Thinking Skills):

1. Can a country achieve economic growth without developing human capital? Justify your answer.
2. “Investment in education yields higher returns in the future.” Explain with an example.

IV. Key Formulas/Concepts:

• No mathematical formulas, but key definitions include:
  • Human Capital
  • Disguised Unemployment
  • Economic vs Non-Economic Activities
  • Quality of Population

V. Deleted Portions (CBSE 2025–2026):

 No portions have been deleted from this chapter as per the rationalized NCERT textbooks (2025–26). Refer: ncert.nic.in

VI. Chapter-Wise Marks Bifurcation (Estimated – CBSE 2025–26):

Unit/Chapter	Estimated Marks	Type of Questions Typically Asked
People as Resource	4–6 Marks	Concept-based short and long answers, MCQs

VII. Previous Year Questions (PYQs):

Year	Marks	Question
2019	5	How is human capital different from physical capital? Explain.
2020	3	How does education improve the quality of population?
2021	2	Give two examples of economic and non-economic activities.
2023	3	What are the different types of unemployment in rural India?

VIII. Real-World Application Examples to Connect with Topics:

Concept	Real-Life Example
Human Capital	A skilled software engineer vs. an unskilled laborer – the former earns more.
Disguised Unemployment	6 people working on a small farm where only 3 are actually needed.
Investment in Education	Government initiatives like PM eVidya and Skill India programs.
Non-Market Activity	A mother cooking food for her family at home.

IX. Student Tips & Strategies for Success (Class-Specific):

 Time Management:

• Spend 20 minutes daily revising key definitions and case examples.
• Solve PYQs every weekend as short timed exercises.

 Exam Preparation:

• Use flowcharts to distinguish sectors and unemployment types.
• Prepare flashcards for key terms like disguised unemployment, market activity, etc.

 Stress Management:

• Connect topics with your surroundings (e.g., job issues in your village or city).
• Make a group study plan to review concepts with friends.

X. Career Guidance & Exploration (Class-Specific):

Stream	Possible Career Paths
Arts	Economist, Social Scientist, Civil Services
Commerce	Data Analyst, Human Resource Manager
Science	Public Health Expert, Policy Researcher

 Exams to Aim For: NTSE, Social Science Olympiads, CBSE Competency-Based Questions (CBQ)

XI. Important Notes:

• Study examples of real-life employment and labor force issues from your locality.
• Revise key NCERT in-text questions thoroughly.
• Practice case-based and assertion-reasoning questions for CBSE pattern alignment.
• Always relate economic theories to India’s development programs and rural livelihood scenarios.