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CBSE Class 9 MCQs of Economics Chapter 2 - People as Resource

By Karan Singh Bisht

|

Updated on 2 Sep 2025, 12:38 IST

People as Resource (Class 9 NCERT Economics, Chapter 2) explains how human beings are valuable assets for a nation’s development. The chapter emphasizes that by investing in education, healthcare, and skill development, individuals can become productive resources contributing to economic growth.

This chapter highlights the idea of human capital, which includes the skills, knowledge, and abilities of people. It shows that individuals are not liabilities but assets when their potential is properly utilized.

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Key themes of the chapter include:

  • The role of education in improving productivity.
  • The importance of healthcare in maintaining an efficient workforce.
  • Skill development as a driver of growth and innovation.
  • Challenges like unemployment, underemployment, and brain drain.

By addressing these challenges and making proper investments in people, a country can achieve sustainable economic growth.

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This set of Class 9 MCQs on People as Resource will help you test your knowledge, revise important concepts, and deepen your understanding of the chapter.

MCQ Questions for Class 9 Subject-wise
MCQ Questions for Class 9 MathsMCQ Questions for Class 9 Science
MCQ Questions for Class 9 Social Science

MCQ Questions for Class 9 Economics: Ch 2 People as Resource

What is meant by ‘People as Resource’?

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A) People who can work

B) People who are dependent

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C) People who consume resources

D) People who create goods and services

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Answer: D) People who create goods and services

Human capital formation includes:

A) Education and health

B) Infrastructure and roads

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C) Buildings and machinery

D) Land and water

Answer: A) Education and health

Which of the following is an example of economic activity?

A) Cooking at home

B) Playing with friends

C) Teaching in a school

D) Watching TV

Answer: C) Teaching in a school

What is the primary role of education in human capital formation?

A) Entertainment

B) Skill development

C) Leisure activities

D) Time pass

Answer: B) Skill development

What is the impact of health on human capital?

A) Increases productivity

B) Decreases productivity

C) Has no effect

D) Reduces lifespan

Answer: A) Increases productivity

Which of the following is a benefit of literacy?

A) Higher wages

B) Unemployment

C) Poor health

D) Illiteracy

Answer: A) Higher wages

The quality of population depends on:

A) Birth rate

B) Death rate

C) Education and health

D) Migration

Answer: C) Education and health

Which sector includes farming and fishing?

A) Primary sector

B) Secondary sector

C) Tertiary sector

D) Quaternary sector

Answer: A) Primary sector

What does the tertiary sector provide?

A) Raw materials

B) Services

C) Manufactured goods

D) Land

Answer: B) Services

What is the workforce?

A) All people

B) Children and elderly

C) People who are employed

D) Only men

Answer: C) People who are employed

Why is unemployment a problem for the economy?

A) Increases productivity

B) Reduces income and demand

C) Reduces savings

D) Increases population

Answer: B) Reduces income and demand

Which of the following is a non-economic activity?

A) Doctor treating patients

B) Teacher giving lessons

C) Housewife cooking meals

D) Engineer designing buildings

Answer: C) Housewife cooking meals

What does disguised unemployment mean?

A) More workers than needed

B) No workers available

C) High wages

D) Low productivity

Answer: A) More workers than needed

Which of the following is not part of the primary sector?

A) Mining

B) Fishing

C) Manufacturing

D) Farming

Answer: C) Manufacturing

What does human capital refer to?

A) Money and investments

B) Skills and knowledge

C) Machines and equipment

D) Natural resources

Answer: B) Skills and knowledge

More resources for class 9

A) By building more factories

B) By improving education and health services

C) By reducing taxes

D) By increasing imports

Answer: B) By improving education and health services

Which sector includes transport and communication?

A) Primary sector

B) Secondary sector

C) Tertiary sector

D) Quaternary sector

Answer: C) Tertiary sector

Which is an effect of good health on workers?

A) Less productivity

B) High absenteeism

C) More productivity

D) Low wages

Answer: C) More productivity

Which age group is considered the working-age population?

A) 0-14 years

B) 15-59 years

C) 60-80 years

D) 80+ years

Answer: B) 15-59 years

What is the primary sector also known as?

A) Service sector

B) Industrial sector

C) Agriculture sector

D) Technology sector

Answer: C) Agriculture sector

Which sector transforms raw materials into products?

A) Primary sector

B) Secondary sector

C) Tertiary sector

D) Quaternary sector

Answer: B) Secondary sector

Why is education important for economic growth?

A) Reduces population

B) Increases government spending

C) Enhances skills and productivity

D) Decreases life expectancy

Answer: C) Enhances skills and productivity

Which of the following is a consequence of unemployment?

A) Increased income

B) Reduced poverty

C) Increased social problems

D) Improved health

Answer: C) Increased social problems

How does good education impact society?

A) Increases crime rate

B) Reduces social inequality

C) Increases unemployment

D) Decreases GDP

Answer: B) Reduces social inequality

What is a benefit of investing in human capital?

A) Higher unemployment

B) Lower productivity

C) Economic growth

D) Decreased education levels

Answer: C) Economic growth

What do we call the conversion of raw materials into finished products?

A) Mining

B) Manufacturing

C) Farming

D) Trading

Answer: B) Manufacturing

Which type of unemployment occurs when more people are employed than necessary?

A) Seasonal unemployment

B) Frictional unemployment

C) Disguised unemployment

D) Structural unemployment

Answer: C) Disguised unemployment

Which sector provides goods to consumers?

A) Primary sector

B) Secondary sector

C) Tertiary sector

D) Quaternary sector

Answer: B) Secondary sector

What does the term ‘workforce’ mean?

A) Children and elderly

B) All people in a country

C) People available for work

D) Only men

Answer: C) People available for work

How can better healthcare impact the economy?

A) Increase absenteeism

B) Reduce productivity

C) Increase worker efficiency

D) Decrease life expectancy

Answer: C) Increase worker efficiency

Which of the following is an example of tertiary sector activity?

A) Farming

B) Fishing

C) Banking

D) Mining

Answer: C) Banking

Why is human capital formation essential?

A) To reduce land use

B) To increase natural resources

C) To enhance economic productivity

D) To reduce technology

Answer: C) To enhance economic productivity

What does ‘labour force’ refer to?

A) Only employed people

B) Only unemployed people

C) All people willing to work

D) Only skilled workers

Answer: C) All people willing to work

Which sector is also known as the service sector?

A) Primary sector

B) Secondary sector

C) Tertiary sector

D) Quaternary sector

Answer: C) Tertiary sector

What is the effect of poor health on human capital?

A) Increased productivity

B) Reduced productivity

C) Improved skills

D) Increased earnings

Answer: B) Reduced productivity

Which type of activity is done for monetary gain?

A) Non-economic activity

B) Economic activity

C) Leisure activity

D) Voluntary activity

Answer: B) Economic activity

What is the primary focus of the primary sector?

A) Services

B) Industrial goods

C) Natural resources

D) Information technology

Answer: C) Natural resources

Which factor contributes to human capital formation?

A) Pollution

B) Education

C) Unemployment

D) Illiteracy

Answer: B) Education

Which sector is responsible for the creation of services?

A) Primary sector

B) Secondary sector

C) Tertiary sector

D) Quaternary sector

Answer: C) Tertiary sector

Which of the following is a key aspect of human resource development?

A) Infrastructure development

B) Financial investment

C) Skill enhancement

D) Land acquisition

Answer: C) Skill enhancement

Which type of unemployment occurs due to changes in seasons?

A) Structural unemployment

B) Frictional unemployment

C) Seasonal unemployment

D) Disguised unemployment

Answer: C) Seasonal unemployment

A) Reduces income

B) Increases absenteeism

C) Enhances productivity

D) Lowers education levels

Answer: C) Enhances productivity

What is meant by ‘People as Resource’?

A) People who can work

B) People who are dependent

C) People who consume resources

D) People who create goods and services

Answer: D) People who create goods and services

Human capital formation includes:

A) Education and health

B) Infrastructure and roads

C) Buildings and machinery

D) Land and water

Answer: A) Education and health

Which of the following is an example of economic activity?

A) Cooking at home

B) Playing with friends

C) Teaching in a school

D) Watching TV

Answer: C) Teaching in a school

What is the primary role of education in human capital formation?

A) Entertainment

B) Skill development

C) Leisure activities

D) Time pass

Answer: B) Skill development

What is the impact of health on human capital?

A) Increases productivity

B) Decreases productivity

C) Has no effect

D) Reduces lifespan

Answer: A) Increases productivity

Which of the following is a benefit of literacy?

A) Higher wages

B) Unemployment

C) Poor health

D) Illiteracy

Answer: A) Higher wages

The quality of population depends on:

A) Birth rate

B) Death rate

C) Education and health

D) Migration

Answer: C) Education and health

Which sector includes farming and fishing?

A) Primary sector

B) Secondary sector

C) Tertiary sector

D) Quaternary sector

Answer: A) Primary sector

What does the tertiary sector provide?

A) Raw materials

B) Services

C) Manufactured goods

D) Land

Answer: B) Services

What is the workforce?

A) All people

B) Children and elderly

C) People who are employed

D) Only men

Answer: C) People who are employed

Why is unemployment a problem for the economy?

A) Increases productivity

B) Reduces income and demand

C) Reduces savings

D) Increases population

Answer: B) Reduces income and demand

Which of the following is a non-economic activity?

A) Doctor treating patients

B) Teacher giving lessons

C) Housewife cooking meals

D) Engineer designing buildings

Answer: C) Housewife cooking meals

What does disguised unemployment mean?

A) More workers than needed

B) No workers available

C) High wages

D) Low productivity

Answer: A) More workers than needed

Which of the following is not part of the primary sector?

A) Mining

B) Fishing

C) Manufacturing

D) Farming

Answer: C) Manufacturing

What does human capital refer to?

A) Money and investments

B) Skills and knowledge

C) Machines and equipment

D) Natural resources

Answer: B) Skills and knowledge

How can the government improve human capital?

A) By building more factories

B) By improving education and health services

C) By reducing taxes

D) By increasing imports

Answer: B) By improving education and health services

Which sector includes transport and communication?

A) Primary sector

B) Secondary sector

C) Tertiary sector

D) Quaternary sector

Answer: C) Tertiary sector

Which is an effect of good health on workers?

A) Less productivity

B) High absenteeism

C) More productivity

D) Low wages

Answer: C) More productivity

Which age group is considered the working-age population?

A) 0-14 years

B) 15-59 years

C) 60-80 years

D) 80+ years

Answer: B) 15-59 years

What is the primary sector also known as?

A) Service sector

B) Industrial sector

C) Agriculture sector

D) Technology sector

Answer: C) Agriculture sector

Which sector transforms raw materials into products?

A) Primary sector

B) Secondary sector

C) Tertiary sector

D) Quaternary sector

Answer: B) Secondary sector

Why is education important for economic growth?

A) Reduces population

B) Increases government spending

C) Enhances skills and productivity

D) Decreases life expectancy

Answer: C) Enhances skills and productivity

Which of the following is a consequence of unemployment?

A) Increased income

B) Reduced poverty

C) Increased social problems

D) Improved health

Answer: C) Increased social problems

How does good education impact society?

A) Increases crime rate

B) Reduces social inequality

C) Increases unemployment

D) Decreases GDP

Answer: B) Reduces social inequality

What is a benefit of investing in human capital?

A) Higher unemployment

B) Lower productivity

C) Economic growth

D) Decreased education levels

Answer: C) Economic growth

What do we call the conversion of raw materials into finished products?

A) Mining

B) Manufacturing

C) Farming

D) Trading

Answer: B) Manufacturing

Which type of unemployment occurs when more people are employed than necessary?

A) Seasonal unemployment

B) Frictional unemployment

C) Disguised unemployment

D) Structural unemployment

Answer: C) Disguised unemployment

Which sector provides goods to consumers?

A) Primary sector

B) Secondary sector

C) Tertiary sector

D) Quaternary sector

Answer: B) Secondary sector

What does the term ‘workforce’ mean?

A) Children and elderly

B) All people in a country

C) People available for work

D) Only men

Answer: C) People available for work

How can better healthcare impact the economy?

A) Increase absenteeism

B) Reduce productivity

C) Increase worker efficiency

D) Decrease life expectancy

Answer: C) Increase worker efficiency

Which of the following is an example of tertiary sector activity?

A) Farming

B) Fishing

C) Banking

D) Mining

Answer: C) Banking

Why is human capital formation essential?

A) To reduce land use

B) To increase natural resources

C) To enhance economic productivity

D) To reduce technology

Answer: C) To enhance economic productivity

What does ‘labour force’ refer to?

A) Only employed people

B) Only unemployed people

C) All people willing to work

D) Only skilled workers

Answer: C) All people willing to work

Which sector is also known as the service sector?

A) Primary sector

B) Secondary sector

C) Tertiary sector

D) Quaternary sector

Answer: C) Tertiary sector

What is the effect of poor health on human capital?

A) Increased productivity

B) Reduced productivity

C) Improved skills

D) Increased earnings

Answer: B) Reduced productivity

Which type of activity is done for monetary gain?

A) Non-economic activity

B) Economic activity

C) Leisure activity

D) Voluntary activity

Answer: B) Economic activity

What is the primary focus of the primary sector?

A) Services

B) Industrial goods

C) Natural resources

D) Information technology

Answer: C) Natural resources

Which factor contributes to human capital formation?

A) Pollution

B) Education

C) Unemployment

D) Illiteracy

Answer: B) Education

Which sector is responsible for the creation of services?

A) Primary sector

B) Secondary sector

C) Tertiary sector

D) Quaternary sector

Answer: C) Tertiary sector

Which of the following is a key aspect of human resource development?

A) Infrastructure development

B) Financial investment

C) Skill enhancement

D) Land acquisition

Answer: C) Skill enhancement

Which type of unemployment occurs due to changes in seasons?

A) Structural unemployment

B) Frictional unemployment

C) Seasonal unemployment

D) Disguised unemployment

Answer: C) Seasonal unemployment

Why is investing in health important for the economy?

A) Reduces income

B) Increases absenteeism

C) Enhances productivity

D) Lowers education levels

Answer: C) Enhances productivity

What is the impact of good education on an individual’s earnings?

A) Reduces income

B) Increases income

C) Has no effect

D) Reduces job opportunities

Answer: B) Increases income

Which sector involves construction and manufacturing?

A) Primary sector

B) Secondary sector

C) Tertiary sector

D) Quaternary sector

Answer: B) Secondary sector

What does ‘human resource’ refer to?

A) Natural resources

B) Financial capital

C) People and their skills

D) Machinery and tools

Answer: C) People and their skills

Which of the following is an example of an economic activity?

A) Volunteering at a charity

B) Studying in a school

C) Working in an office

D) Playing in a park

Answer: C) Working in an office

What is the role of training in human capital formation?

A) Decreases productivity

B) Has no effect

C) Enhances skills and efficiency

D) Reduces job opportunities

Answer: C) Enhances skills and efficiency

Which factor can lead to better employment opportunities?

A) Poor health

B) Higher education

C) Low skills

D) Lack of training

Answer: B) Higher education

What does ‘workforce participation rate’ refer to?

A) Number of children in school

B) Number of people in leisure activities

C) Proportion of people working or seeking work

D) Proportion of elderly people

Answer: C) Proportion of people working or seeking work

Why is skill development important for economic growth?

A) Reduces productivity

B) Increases unemployment

C) Enhances job performance

D) Lowers education levels

Answer: C) Enhances job performance

What is the impact of good education on an individual’s earnings?

A) Reduces income

B) Increases income

C) Has no effect

D) Reduces job opportunities

Answer: B) Increases income

Which sector involves construction and manufacturing?

A) Primary sector

B) Secondary sector

C) Tertiary sector

D) Quaternary sector

Answer: B) Secondary sector

What does ‘human resource’ refer to?

A) Natural resources

B) Financial capital

C) People and their skills

D) Machinery and tools

Answer: C) People and their skills

Which of the following is an example of an economic activity?

A) Volunteering at a charity

B) Studying in a school

C) Working in an office

D) Playing in a park

Answer: C) Working in an office

What is the role of training in human capital formation?

A) Decreases productivity

B) Has no effect

C) Enhances skills and efficiency

D) Reduces job opportunities

Answer: C) Enhances skills and efficiency

Which factor can lead to better employment opportunities?

A) Poor health

B) Higher education

C) Low skills

D) Lack of training

Answer: B) Higher education

What does ‘workforce participation rate’ refer to?

A) Number of children in school

B) Number of people in leisure activities

C) Proportion of people working or seeking work

D) Proportion of elderly people

Answer: C) Proportion of people working or seeking work

Why is skill development important for economic growth?

A) Reduces productivity

B) Increases unemployment

C) Enhances job performance

D) Lowers education levels

Answer: C) Enhances job performance

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FAQs on People as Resource Class 9 MCQs

What is meant by People as Resource?

It refers to viewing people as an asset (human capital) when their skills, education, and abilities are used productively.

Why is investment in education and health important?

Because it enhances human capital formation, improves productivity, and leads to higher economic growth.

What are the main problems discussed in this chapter?

Unemployment, underemployment, and brain drain are the key issues that hinder proper use of human resources.

How does human capital differ from physical capital?

Human capital is the knowledge and skills of people, while physical capital includes tools, machines, and infrastructure.

What role does skill development play in economic growth?

It increases employability, reduces poverty, and transforms individuals into productive assets for the economy.