Question 18 - Teachoo Sample Paper - Social Science Class 9 - Paper 1 - Teachoo Sample Paper - Social Science Class 9

Which of the following statements are appropriate when considering people as a resource for the economy?

1. Investment in education and health improves the productive capacity of the population.

2. Human capital refers to the skills and knowledge possessed by individuals.

3. The productivity of a country is solely dependent on its natural resources.

4. Population can contribute to the creation of the Gross National Product.

Options:

1. Statements i and ii are appropriate.

2. Statements i, ii, and iv are appropriate.

3. Statements ii and iii are appropriate.

4. Statements iii and iv are appropriate.

Answer:

Answer by Student

The correct answer is (B): Statements i, ii, and iv are appropriate.

Detailed Answer by Teachoo

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Let’s check all the statements.

• Statement i: Investment in education and health improves the productive capacity of the population - It explains the concept of human capital formation. When people are educated and healthy, they can acquire more skills and knowledge, and become more efficient and productive in their work. This increases their income and also the national income. This statement is appropriate.✅
  
  
• Statement ii: Human capital refers to the skills and knowledge possessed by individuals -  It gives the definition of human capital. Human capital is the stock of skill and productive knowledge embodied in people. It is different from human resources, which refers to the population as a potential asset for the economy. This statement is also appropriate.✅
  
  
• Statement iii: The productivity of a country is solely dependent on its natural resources. It ignores the role of human resources and human capital in enhancing productivity. Natural resources are important, but they cannot become useful on their own. They need human resources to make use of them and human capital to improve their quality and quantity. For example, India’s Green Revolution and IT Revolution are examples of how human capital can increase the productivity of land and technology. This statement is not appropriate.❌
  
  
• Statement iv: Population can contribute to the creation of the Gross National Product.  It shows how people as resources can add value to the economy. Gross National Product (GNP) is the total value of goods and services produced by a country’s residents in a given period of time. When people work in different sectors such as agriculture, industry, or services, they produce goods and services that are counted in GNP. Thus, the population can contribute to GNP by using their skills and knowledge. This statement is appropriate.✅  

Thus, option (B) is correct.

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