Questions and Answers
What is human capital formed through?
How does a country’s investment in human capital affect its Gross National Product?
Why is population referred to as 'human resource'?
What is one of the advantages of investing in human capital?
Signup and view all the answers
What does the chapter suggest about the relationship between human capital and society?
Signup and view all the answers
What is noted as a significant benefit of human capital compared to other resources?
Signup and view all the answers
Which revolution is cited as a demonstration of improved productivity through knowledge in agriculture?
Signup and view all the answers
What is meant by 'human capital formation'?
Signup and view all the answers
How can a large population be beneficial for the economy?
Signup and view all the answers
What caused Sakal to pursue higher education?
Signup and view all the answers
What major challenge did Vilas face in his education?
Signup and view all the answers
What was Sakal's significant contribution to his workplace after completing his education?
Signup and view all the answers
What was the financial condition of Vilas's family after his father's demise?
Signup and view all the answers
What was a key factor in Sakal's ability to complete his vocational studies?
Signup and view all the answers
What primary role did Vilas play in his household after his father died?
Signup and view all the answers
What does the story of Sakal exemplify regarding human resources?
Signup and view all the answers
Study Notes
People as Resource
- Population viewed as an economic asset rather than a liability.
- Investment in education, training, and medical care transforms population into human capital.
- Human capital consists of the skills and productive knowledge of individuals.
- Refers to the productive abilities of a country's workforce, contributing to Gross National Product (GNP).
- Population is a resource categorized as 'human resource', showcasing its potential economic benefits over mere challenges of provisioning.
Human Capital Formation
- Development of human resource leads to 'human capital formation'.
- Comparison made between human capital formation and physical capital formation.
- Investment in human capital yields returns in the form of increased productivity and higher incomes.
- Direct correlation between education/health and enhanced productivity observed in wage earnings and overall economic output.
Case Studies: Green Revolution and IT Revolution
- India’s Green Revolution exemplifies enhanced productivity through improved agricultural technologies.
- The IT revolution highlights the growing importance of human capital over traditional material resources.
Societal Benefits of Education and Health
- Educated and healthier individuals earn higher incomes; their benefits extend to society, positively impacting those not directly educated or healthy.
- Human resources can effectively utilize land and capital, unlike physical resources which require human direction.
Narratives of Sakal and Vilas
-
Sakal's Story:
- Comes from a family that values education; ultimately succeeds by leveraging vocational training in computers.
- Achieved career success through support from his parents and dedicated effort, exemplifying how human capital can lead to economic gain.
-
Vilas's Story:
- Lives in poverty with health challenges and limited access to education, highlighting the detrimental effects of neglecting investment in human capital.
- Represents the consequences of failing to develop human resources, as a lack of education and health leads to economic stagnation.
Conclusion
- A large population is not inherently a burden; when invested in, it can serve as a remarkable asset through enhanced education and health, fostering economic growth.
Studying That Suits You
Use AI to generate personalized quizzes and flashcards to suit your learning preferences.
Description
This chapter explores the concept of population as human capital, emphasizing the importance of education, training, and healthcare in turning individuals into assets for the economy. It discusses how investing in human capital can enhance productivity and skill levels within a workforce. Understanding this perspective is crucial for evaluating economic growth and development.
