This is known as human capital, which enables better production with human skill and knowledge. But not all economists agree. View Answer. 1. Knowledge process outsourcing (KPO) involves outsourcing work to individuals that typically have advanced degrees and expertise in a specialized area. 1. A good part of economic growth has occurred due to the accumulation of human capital. An organization is often said to only be as good as its people. Hence, all researchers consider that human capital is the most important resource of the community, more powerful than natural or wealth. When the investment is made in the existing human resource for further development by becoming more educated and healthy is termed as human capital farmatipn. Check the below NCERT MCQ Questions for Class 9 Economics Chapter 2 People as Resource with Answers Pdf free download. In fact, human capital is the stock of skill and productive knowledge embodied in them. In more recent times, the term was used to describe the labor required to produce manufactured goods. [CBSE 2014] Answer: Subhala. That's why there is often a shift from developing places or rural areas to more developed and urban areas. Human capital is available to generate material wealth for an economy or a private firm. In the 1960s, the theory was attacked primarily because it legitimized bourgeois individualism, which was seen as selfish and exploitative. The concept of human capital recognizes that not all labor is equal. Human capital development is not only meaningful indicator of modernization but it is essential for the development of technology and skill which can be a substitute for physical capital. How can the population of a nation becomes human capital? Chapter-2People as Resource Very Short Answers:- 1.Which resource is superior to all resources? Factors that influence human capital and importance to econ. Human capital influences economic growth and can generate an economy through knowledge and abilities. Higher Rate of Contribution and Equality: Human 4. Those are described as follows. This factor includes labor and other resources that humans can provide—education, experience, or unique skills—that contribute to the production process. According to Harbison, the human capital formation indicates, “the process of acquiring and increasing the number of persons who have the skills, education and experience which are critical for the economic and the political development of the country. Question 1. Important Questions for Class 9 Social Science Economics Chapter 2 People as Resource. But the most modern theory was used by several different economists including Gary Becker and Theodore Schultz, who invented the term in the 1960s to reflect the value of human capacities. The offers that appear in this table are from partnerships from which Investopedia receives compensation. It has now been found that the rate of growth achieved in the developed countries cannot be wholly explained by the increases in physical capital and advances in technology. Answer: Human capital is the stock of skilled and productive work force of a nation. Human capital influences economic growth and can generate an economy through knowledge and abilities. The indicator to determine health of the people in a country is _____ . Population becomes human capital when there is investment made in the form of education, training and medical care. It also creates the ability to absorb new technologies. You can access all the Human Capital Formation in India Class 11 notes PDF easily from the official website or the mobile app of Vedantu. The knowledge economy describes the commodification and economic value derived from research & development and academic pursuit. HR managers can calculate the total profits before and after any investments are made. Innovative Skills: Human capital encourages the advancement of new techniques for production and this results in the increase of economic development in the shape of an increase in GDP. Human capital is perceived to have a relationship with. We need investment in human capital to produce more human capital out of human resources. View Answer. (a) 2. We need investment in human capital to produce more human capital out of human resources. Human capital formation raises production levels and leads to economic growth by adding to GDP. It is essential for the development of an economy. There is a strong relationship between human capital and economic growth. Human resource. It may or may not contribute significantly to the economy of a nation. Vayojan Vidya. 53 Qs. As UCLA economist Thomas J. Kane has pointed out, costs rose more for black college students than for whites. The human capital theory was also believed to blame people for any defects that happened in the system and of making capitalists out of workers. Unlike human capital is intangible, that can only be experienced. Nations require adequate human capital who are educated and qualified as educators and other specialists. How Knowledge Process Outsourcing (KPO) Helps Companies Boost Profits, relationship between human capital and economic growth. How human capital is developed and managed may be one of the most important determinants of economic and organizational performance. Human capital is an intangible asset or quality not listed on a company's balance sheet. 22. Directors, employees, and leaders who make up an organization's human capital are critical to its success. Because people come with a diverse set of skills and knowledge, human capital can certainly help boost the economy. The bourgeois class of people included those of the middle class who were believed to exploit those of the working class. Matters of economic of growth and decline hinge on the population. Class 8 : MCQ with Solution : People as Resource. We have Provided People as Resource Class 9 Economics MCQs Questions with Answers to help students understand the concept very well. Since human capital is based on the investment of employee skills and knowledge through education, these investments in human capital can be easily calculated. This is called human capital, and to truly understand the world, we must understand the role that populations play in an economy's growth or decline. Capital consists of human-created assets that can only be as good as its people notes Economics people resource. Factors that influence human capital influences economic growth freedom, dignity and the worth of labor per hour an asset. 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