People As Resource

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Human Capital: Human capital is the stock of skill and productive knowledge embodied in human beings. Population (human beings) become human capital when it is provided with better education, training and healthcare facilities.

Human beings perform many activities which can be grouped into economic and noneconomic.

Economic Activities: Economic activities refer to those activities of man which are undertaken for a monetary gain or to satisfy his/her wants. The activities of workers, farmers, shopkeepers, manufacturers, doctors, lawyers, taxi drivers, etc. fall under this category.

Non-Economic Activities: Non-economic activities are ones that are not undertaken for any monetary gain. These are also called unpaid activities, e.g., Puja-paath, housekeeping, helping the poor or disabled, etc.

Classification of Economic Activities:

Three main sectors that are primary sector, secondary sector and tertiary sector.

1. The primary sector includes activities like agriculture, forestry, animal husbandry, fishing, poultry, farming and mining. In this sector, goods are produced by exploiting nature.
2. In the secondary sector, manufacturing (small and large) and construction activities are included.
3. The tertiary sector (also called service sector) provides various types of services like transport, education, banking, insurance, health, tourism, etc.

Market Activities and Non-Market Activities: Economic activities, i.e. production of goods and services can be classified into market activities and non-market activities. Market activities are performed for remuneration. Non-market activities are the activities carried out for self-consumption.

Activities of Women: Women generally look after domestic affairs like the cooking of food, washing of clothes, cleaning of utensils, housekeeping and looking after children.

People as a Resource: People as a resource is a way of referring to a country’s workforce in terms of their existing skills and abilities.

Human Capital Formation: When the existing human resource is further developed by spending on making the workforce more educated and healthy, it is called human capital formation.