Chapter - 2 People as Resource

Overview

This chapter provides following concepts:

Human Capital:: Human capital is the stock of knowledge, habits, social and personality attributes, including creativity, embodied in the ability to perform labor so as to produce economic value.

Humans perform many activities, one way to classify these activities, Economic Activities and Non-economic Activities

1. Economic Activities

Economic activities are those activities which are done for monetary gains or in other person doing the activity get money in return of his/her services. Such activities include Teaching, engineering, doctors, labourer, shop keepers, lawyers etc.

2. Non-Economic Activities

Non economic activities are done without any monetary gains.

Sectors under Economic activities:

• Primary Sector

An industry involved in the extraction and collection of natural resources, such as copper and timber, as well as by activities such as farming and fishing. A company in a primary industry can also be involved in turning natural resources into products. This sector includes agriculture, forestry, animal husbandry, fishing, poultry farming and mining etc.

• Secondary Sector

The secondary sector of the economy includes industries that produce a finished, usable product or are involved in construction. This sector generally takes the output of the primary sector and manufactures finished goods or where they are suitable for used by other businesses, for export, or sale to domestic consumers.

• Tertiary Sector

The tertiary sector of industry involves the provision of services to other businesses as well as final consumers. Services may involve the transport, distribution and sale of goods from producer to a consumer, as may happen in wholesaling and retailing, pest control or entertainment. The goods may be transformed in the process of providing the service, as happens in the restaurant industry.

Market and Non-market activities:

Market activities involves the remuneration paid to anyone who performs an activity for earning money, it may generate profits.