Class 9 Economics NCERT Chapter 2 – "People as Resource," featuring 30 MCQs, 10 short answer questions, and 5 long questions, with answers
30 Multiple Choice Questions (MCQs)
Who is considered the most valuable resource of a country?
a) Mountains
b) Minerals
c) People
d) Water
Answer: c) People
What does ‘Human Capital’ refer to?
a) Machines and factories
b) Money
c) The skills and abilities of people
d) Buildings
Answer: c) The skills and abilities of people
What type of resource is education?
a) Natural
b) Physical
c) Human
d) Mineral
Answer: c) Human
Which sector absorbs the maximum labor force in India?
a) Manufacturing
b) Agriculture
c) IT
d) Banking
Answer: b) Agriculture
Which of the following is NOT a way to invest in human capital?
a) Training
b) Education
c) Medical care
d) Mining
Answer: d) Mining
Which is NOT a factor of production?
a) Land
b) Labor
c) Human capital
d) Atmosphere
Answer: d) Atmosphere
Which one of the following is an economic activity?
a) Playing
b) Cooking for family
c) Teaching in school
d) Sleeping
Answer: c) Teaching in school
Which activity is classified as non-economic?
a) Shopkeeping
b) Farming
c) Playing cricket
d) Driving a bus
Answer: c) Playing cricket
What does unemployment mean?
a) More jobs than workers
b) No jobs for some people
c) Less production
d) No land for farming
Answer: b) No jobs for some people
Literacy rate is an indicator of:
a) Employment
b) Health
c) Education
d) Birth rate
Answer: c) Education
Which of the following is NOT an effect of illiteracy?
a) Low productivity
b) Unemployment
c) High growth rate
d) Poverty
Answer: c) High growth rate
Which year is considered for calculating literacy rate in India?
a) Every year
b) Census year
c) Election year
d) Financial year
Answer: b) Census year
What is the role of health in human capital formation?
a) Increases sickness
b) Reduces productivity
c) Increases productivity
d) Reduces education
Answer: c) Increases productivity
Disguised unemployment is found in:
a) Cities
b) Industries
c) Agriculture
d) Transport
Answer: c) Agriculture
When people are employed but their contribution is zero, it is called:
a) Visible unemployment
b) Disguised unemployment
c) Overemployment
d) Underemployment
Answer: b) Disguised unemployment
Which age group is considered the working population?
a) 0-6 years
b) 15-59 years
c) 60-80 years
d) 10-20 years
Answer: b) 15-59 years
Which sector employs most rural women in India?
a) IT sector
b) Agriculture
c) Mining
d) Construction
Answer: b) Agriculture
Which type of employment is common in urban areas?
a) Disguised unemployment
b) Self-employment
c) Wage employment
d) Seasonal unemployment
Answer: c) Wage employment
What is an asset for the economy?
a) Uneducated people
b) Educated people
c) Illness
d) Poverty
Answer: b) Educated people
Which is an example of investment in human capital?
a) Buying land
b) Attending vocational training
c) Constructing roads
d) Purchasing gold
Answer: b) Attending vocational training
What is meant by ‘physical capital’?
a) Machines and buildings
b) Knowledge
c) Labor
d) Money only
Answer: a) Machines and buildings
Which state has the highest literacy rate in India (as per recent census)?
a) Bihar
b) Kerala
c) Rajasthan
d) Odisha
Answer: b) Kerala
Puneet helps his mother in household work. This activity is:
a) Economic
b) Non-economic
c) Productive
d) Profitable
Answer: b) Non-economic
Higher income leads to:
a) Higher investment in physical capital
b) Lower investment in human capital
c) Higher investment in human capital
d) Lower literacy
Answer: c) Higher investment in human capital
What is the main aim of Sarva Shiksha Abhiyan in India?
a) Free health care
b) Universal primary education
c) Unemployment reduction
d) Road construction
Answer: b) Universal primary education
Educated unemployment is rising in:
a) Cities
b) Villages
c) Among rural youth
d) Among educated youth
Answer: d) Among educated youth
Which of the following describes seasonal unemployment?
a) Unemployed for few months in a year
b) Unemployed always
c) Underemployed always
d) Fully employed
Answer: a) Unemployed for few months in a year
What is the population policy of India aiming for?
a) High birth rate
b) Population control and human capital development
c) Mass migration
d) Only industrialization
Answer: b) Population control and human capital development
Who are considered ‘assets’ for the economy?
a) Sick and illiterate
b) Educated and healthy people
c) Poor and unemployed
d) Underemployed
Answer: b) Educated and healthy people
Which of the following is NOT included in ‘People as Resource’?
a) Education
b) Health
c) Skills
d) Geography
Answer: d) Geography
10 Short Answer Questions
Define ‘People as Resource.’
Answer: Viewing the population as an asset for the economy, focusing on their productive abilities.
What is human capital?
Answer: It comprises the skills, education, health, and abilities of people, which help in economic growth.
What is the impact of investment in education?
Answer: It increases the efficiency and income earning capacity of people, thereby contributing to the economy.
What is disguised unemployment? Give an example.
Answer: More people employed than required, common in agriculture—for example, five people working on a farm where three are enough.
State two differences between economic and non-economic activities.
Answer: Economic activities generate income (teaching, farming); non-economic do not generate income (cooking for family, playing).
How does health influence economic development?
Answer: Healthier people are more productive, contribute more, and reduce healthcare costs.
Name two employment sectors where disguised unemployment is common.
Answer: Agriculture and cottage industries.
How does unemployment affect the economy?
Answer: It leads to waste of human resources, higher poverty, and lower production/output.
What is the literacy rate and its significance?
Answer: The percentage of literate people; indicates the education level and socio-economic development of a nation.
Why are rural women mostly associated with agricultural work?
Answer: Due to lack of alternative employment opportunities and social norms.
5 Long Answer Questions
Explain the concept ‘People as Resource’ with examples.
Answer: It means people contribute to the economy through productive activities; e.g., a skilled worker earns more and adds value than an unskilled laborer.
Discuss the steps required for human capital formation.
Answer: Investment in education and health, skill development and training, nutrition, and on-the-job experience all contribute to human capital formation.
What are the main types of unemployment found in India? Provide examples.
Answer: Seasonal unemployment (farmers during off season), disguised unemployment (agriculture), educated unemployment (graduates without jobs).
Describe the role of education and health in human capital formation.
Answer: Education increases skills and efficiency; health improves working capability and quality—both are crucial for a productive workforce.
Analyze the consequences of high unemployment for a country.
Answer: Results in wasted human potential, social problems like poverty and crime, low growth, and high dependency ratios.
