Q: Human resources are superior to other resources because __________.

Human resource is different from other resources like land and physical capital in the following ways: From economic development perspective, human resources exhibit multiple importances i.e. at one end human resource act both producers as well as consumers. Human resource makes use of other resources like land and physical capital to produce an output. Human resources are considered superior to other resources as it is not confined to one region or place. It can spread to other places and diversify.

Q: Which of the following explains the term economic growth?

An increase in the amount of goods and services produced per head of the population over a period of time is called economic growth. It includes increase in per capita production, per capita real income and structural change in economics. It talks about quantitative increase but not qualitative increase.

Q: Which of the following explains the term economic development?

Economic development is the economic growth accompanied by improvement in well being of man. For example just increase in national income or increase in production of goods and services is not an economic development but it is economic growth. It should be accompanied by improvement in the quality of life like improvement in the technology involved, improvement in production, improvement in distribution system.

Question 1

Distinguish between physical capital and human capital.

Accepted Answer

Differences between physical capital and human capital.Physical Capital   Human capital1. Any non-human asset made by humans and then used in production it is known as physical capital.   1. When the existing '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.2. It is tangible and can be sold in the market, e.g., goods like a bus or a machine.   2. It is not tangible and cannot be sold in the market because it is naturally built in the mind and body of its owner, only the services of human capital can be sold.3. Physical capital is separable from its owner.   3. Human capital is inseparable from its owner.4. Physical capital benefits only the owner.   4. Human capital benefits not only the owner but the society in general.5. Physical capital is inferior to human capital.      5. Human capital is superior to other resources like land and physical capital.6. Physical capital cannot become useful on its own.    6. Human capital can make use of physical capital.

Question 2

Human resources are superior to other resources because __________.

Accepted Answer

&#10;&#10;Human resource is different from&#10;other resources like land and physical capital in the following ways: &#10;&#10;From economic development&#10;perspective, human resources exhibit multiple importances i.e. at one end human&#10;resource act both producers as well as consumers. Human resource makes use of other&#10;resources like land and physical capital to produce an output. Human resources are considered&#10;superior to other resources as it is not confined to one region or place. It&#10;can spread to other places and diversify.&#10;&#10;&#10;&#10;&#10;&#10;

Question 3

Which of the following is NOT an indicator of economic development?

Accepted Answer

Decreased women participation in job market is not an indicator of economic development. It is not an indicator of economic development as the decreasing percentage of women will generate lower level of national income, in turn national output of an economy will also get decreased. Thus, decreased women participation in job market does not signify economic development.

Question 4

How does investment in human capital contribute to economic growth?

Accepted Answer

1:Investment in human capital is believed to be positively related to economic growth. It leads to efficient utilisation of the material inputs and capital. With increase in productivity, output increases at an increasing rate and hence economic growth accelerates. 2:Human capital is the fundamental source of economic growth. It is a source of both increased productivity and technological advancement.Human capital is described as the skills, training, and health acquired through on the job training and education.3:Economists have long believed that investments in education, or &#8220;human capital,&#8221; are an important source of economic growth.

Question 5

Which of the following explains the term economic growth?

Accepted Answer

An&#10;increase in the amount of goods and services produced per head of the population&#10;over a period of time is called economic growth. It includes increase in per capita production,&#10;per capita real income and structural change in economics. It talks about&#10;quantitative increase but not qualitative increase.

Question 6

Which of the following explains the term economic development?

Accepted Answer

Economic&#10;development is the economic growth accompanied by improvement in well being of man.&#10;For example just increase in national income or increase in production of goods&#10;and services is not an economic development but it is economic growth. It should&#10;be accompanied by improvement in the quality of life like improvement in the&#10;technology involved, improvement in production, improvement in&#10;distribution system.

Question 7

The nature of unemployment differs in rural and urban areas. How?

Accepted Answer

The following are the differences in the nature of unemployment in rural and urban areas:1 Population: Urban areas are highly populated but rural areas are less populated. Educated unemployment is mostly found in urban areas as most of the people are skilled but they have less opportunity. In rural areas, with fewer work opportunities, more people are engaged where less is required. This is called disguised unemployment.2 Occupational: People in rural areas are mostly dependent on agriculture. Thus, seasonal unemployment is found in rural areas where cultivation is hampered due to seasonal changes.3 Industrial: Urban areas are more developed than rural areas because of industrialization. Because of increased industrialization, more people migrate to urban areas. Overpopulated urban areas have more industrial unemployment.

Question 8

Population becomes human capital when there is investment made in the form of education, training and _______.

Accepted Answer

Population becomes human capital when there is investment made in the form of education, training and medical care.

Question 9

Investment in human capital is expenditure on _____.

Accepted Answer

Investment in human capital is expenditure on:-EducationTrainingHealthcare

Question 10

"Education is an important input of human capital formation." Do you agree? Given reasons for your answer

Accepted Answer

The role of education in human capital formation is vital. A large population can be turned into a liability if it is not educated. By giving proper education we can make a child well developed, well eligible to do any work. Thus, education adds to the quality of labor. This enhances total productivity, which adds to the growth of the economy. This in turn pays an individual through salary or in some other form of his choice. Education has a vital role to play in human resource development. Education and skills are the major determinants of the earning of an individual. A child, with the investment made on her education and training, can yield a high return in the future in the form of higher earnings and greater contribution to society.Educated persons are found to invest more heavily in the education of their children. This is because they have realized the importance of education for themselves.