{"id":32280,"date":"2022-11-10T17:20:02","date_gmt":"2022-11-10T11:50:02","guid":{"rendered":"https:\/\/apboardsolutions.com\/?p=32280"},"modified":"2022-11-10T17:24:45","modified_gmt":"2022-11-10T11:54:45","slug":"ap-inter-2nd-year-economics-important-questions-chapter-3","status":"publish","type":"post","link":"https:\/\/apboardsolutions.com\/ap-inter-2nd-year-economics-important-questions-chapter-3\/","title":{"rendered":"AP Inter 2nd Year Economics Important Questions Chapter 3 National Income"},"content":{"rendered":"

Students must practice these AP Inter 2nd Year Economics\u00a0Important Questions<\/a> 3rd Lesson National Income to boost their exam preparation.<\/p>\n

AP Inter 2nd Year Economics Important Questions 3rd Lesson National Income<\/h2>\n

Long Answer Questions<\/span><\/p>\n

Question 1.
\nExplain the National Income Trends in India.
\nAnswer:
\nNational Income can be defined as the net money value of all final goods and services produced in a country during a period of one year valued at current market prices, without duplication. It can also viewed as the aggregate factor income (i.e., earning of labour and property) which arises from current production of goods and services by the Nations Economy.”<\/p>\n

As National Income is one of the important indicators of Economic Development, Government of India, after independence made systematic efforts to calculate\/estimate National Income.<\/p>\n

National Income trends:
\nThe trends in the changes in National Income show that India did not achieve much Economic progress and development prior to Economic reforms and until 8th Five-Year Plan.<\/p>\n

NNP at current prices, which was Rs. 9,464 crores in 1950-51 has increased Rs. 4,71,619 crores in 1990-91. At 2004-05 prices NNP which was Rs. 2,55,405 crores in 1950-51 has increased to Rs. 12,02,305 crores in 1990-91 per capita NNP at current prices “which was Rs. 264 in 1950-51 has increased to Rs. 5,621 in 1990-’91 and in 2004-’05 prices” it has increased from Rs. 7,114 to Rs. 14,330 (between 1950-51 and 1990-91).<\/p>\n

But in post-reforms period, between 1990-91 and 2000-01, per capita NNP at current prices has increased from Rs. 5,621 to Rs. 17,381. At current prices, Net national product has increased from Rs. 4,71,619 crores in 1990-91 to 91,71,045 crores by 2013-T4. In 2004-05 prices, Net National Product has increased from 12,02,305 crores in 1990-91 to Rs. 49,20,138 crores in the year 2013-T4. Between 2000-01 and 2013-T4 per capita NNP at 2004-05 prices has increased from Rs. 17,381 to Rs. 74,380.<\/p>\n

In post reform period, since the beginning of the 21st century and during 10th and 11th Five Year Plans the annual growth rate in per capita is satisfactory with 7.5% per annum (in 10th plan) and 7.8% per annum (in 11th plan).<\/p>\n

\"AP<\/p>\n

Question 2.
\nBriefly explain the sectoral contribution to the National Income.
\nAnswer:
\nAn important factor that determines the extent of Economic development in a country is sectoral contribution to National Income, i.e., which of the 3 sectors contributes a large share to gross domestic product or country’s National Income.<\/p>\n

The changes in the contribution of different sectors to GDP of India since 1950-51 are as below.
\n1) The share of primary sector in GDP of India which was 55.4% in 1950-51 has decreased to 13.9% in 2013-T4, indicating lesser dependence on agricultural sector.<\/p>\n

2) The share of industrial\/secondary sector in GDP of India, which was 15% in 1950- 51 has increased to 26.2% in 2013-T4.<\/p>\n

3) The share of service sector \/ Tertiary sector in GDP of India, which was 29.6% in 1950-’51 has increased sharply to 59.9% in 2013-T4. The above changes indicate that there is significant Economic development in India since 1950-51.<\/p>\n

Question 3.
\nWhat are the causes of inequalities in the distribution of Income and wealth ?
\nAnswer:
\nAn important socio-economic problem faced by all developing Economies is wide inequalities in the society. The qualities are globed phenomenon and they somewhat less in developed economies of the world. The term inequalities in income and wealth refers to the disparities in the distribution of wealth of the society (income and wealth) between rich and poor people.<\/p>\n

Causes of Inequalities in the distribution of Income and Wealth in India:
\n1) Inequalities in land ownership: Even though abolished after independence, the zamindari system which existed during British rule in agricultural sector is an important cause of inequalities in land ownership. Such excessive concentration of land in the hands of few rich and big landlords, along with their higher capacity to save and greater access to institutional finance is responsible for income inequalities in rural areas.<\/p>\n

2) Concentration of assets in private corporate sector: The freedom given to private sector to do private business to earn business profits and to accumulate private, wealth, as a part of mixed economic system is responsible for excessive concentration of assets in the hands of few private corporate houses \/ corporation sector. As on 31-3-1991 large private houses in India had aggregate assets worth Rs. 45,830 crores.
\nIn 2013, Reliance Industries alone had total assets worth Rs. 3,62,375 crores. In the same year 2013, the top five private corporate houses like RIL, Tata motors, Bharati Airtel, Tata steel and L & T had combined assets worth Rs. 9,80,764 crores.<\/p>\n

3) Inequalities in professional training: The access to quality education, better training and superior professional competence to the children of rich people like doctors, engineers, lawyers, business executives and lack of access to the above to the children of weaker sections and poor people is an important cause unequal distribution of Income wealth and private property in the society.<\/p>\n

4) Inflation and price rise: An important cause of inequalities of Income and wealth in India is inflation and steep rise in the general price level. Inflation and uncontrolled rise in the price level by eroding real incomes of poor people and benefiting the rich (farmers) in the villages, with large marketable surplus is responsible for widening the inequalities between rich and poor people.<\/p>\n

5) Inequality in credit facilities: The inequality is access to institutional credit facilities in India is an important causes of inequalities in India. Banks and other financial institutions sanction credit to big industrial entrepreneurs and rich farmers with such easy credit rich people become further rich. But poor farmers in villages, small entrepreneurs, with no such easy access, borrow from village money lenders at high rate of interest and become further poor.<\/p>\n

6) Urban bias in private investment: Due to profit motive and tendency of the private people to make new investments only in already developed Urban areas about 70% of the private investments are made in Urban areas. This is inspite of 70% of population of India living in rural areas. The bias of the private investors to make their new investments in already developed Urban areas is another cause of inequalities in India.<\/p>\n

7) The role of the government: Another cause of income inequalities in India is growing public expenditure on social welfare programmes \/ schemes such growing expenditure made on welfare programmes like health, education, on public housing, etc. benefits mostly rich sections like rich contractors, politicians, and bureaucrats, than benefitting or helping the weaker sections and really poor in the society.<\/p>\n

Question 4.
\nBriefly explain the measures to reduce income inequalities in India. [Mar ’19 (TS)]
\nAnswer:
\nVarious factors like inequalities in land ownership, excessive concentration of assets in private corporate sector, inflation and price rise, urban bias in private investments responsible for inequalities in income and wealth in India. Such inequalities can reduced through the following measures.<\/p>\n

1) Hand Reforms: An important remedy to reduce inequalities in rural areas is the effective implementation of land reforms. Land reforms in the form of providing security to tenants, fixation of fair rents, distribution of surplus land among landless rural people through land ceiling Acts can reduce inequalities (in the possession of agricultural land) in rural areas. It is observed that the effective implementation of
\nland reforms has resulted in 18% decrease in agricultural output and reduced income inequalities in West Bengal.<\/p>\n

2) Control over monopolies and restrictive trade practices: The effective control of business monopolies and restrictive trade practices in private sector through new legislative measures like Consumer Protection Act, Competition Act, Prevention of Money Laundering Act, etc. can prevent the concentration of Wealth in the hands of few rich people and thereby can reduce inequalities of income in the society.<\/p>\n

3) Co-operative Enterprises: An important measure that helps in reducing income inequalities in India is to encourage co-operative enterprises. In private sector with profit motive wealth is shared only among very few rich people and is a cause of inequalities of income. But co-operative sector, and co-operative enterprises through distributing wealth among a large number of members results in equitable distribution of wealth in the society and reduction of the inequalities.<\/p>\n

4) Encouragement of new Enterprises: The policy of the government to encourage new enterprises through special incentives and concessions can help in reducing inequalities in the economy. Similarly, if the government strictly implements the policy of not giving licenses to existing firms to start some more units, inequalities * of income can be reduced.<\/p>\n

5) Social Security: If the government provides social security measures like payment of compensation to insured workers, maternity benefits, fixation of minimum wages, payment of retirement and old age pensions, provident fund, etc. to weaker sections of the society and industrial workers, income inequalities can be reduced.<\/p>\n

6) Taxation: In India there is progressive taxation in which high rate of taxes are imposed on rich people and low rate of taxes are imposed on poor people. Such a system of progressive taxation which is in existence in India helps in the redistribution of income and wealth infavour of poor people and thus reduces inequalities of income in the society.<\/p>\n

7) Control over capital issues: An important measure that helps in reduction of income inequalities in India is firm and effective control of capital issues by the government.
\nThe provisions of various economic and corporate legislations are to be effectively implemented by the government in order to prevent big industrial houses to raise heavy amounts of capital from public.<\/p>\n

8) Employment and wage policies: Income inequalities can be reduced in India if the gove nment starts employment generation programmes especially in rural like IRDP, Rural landless Employment Guarantee programme, National Rural Employment programmes. Along with employment generation programmes implementation and payment of minimum wages can help in reducing inequalities in India.<\/p>\n

Question 5.
\nWhat are the causes of poverty in India? [Mar. ’19(AP); Mar. \u201918,’17; May ‘18,17]
\nAnswer:
\nA Poverty can be defined as a socio-economic phenomena in which a part or section of the society is unable to fulfill\/satisfy even the basic necessities of life such food, clothing, shelter, etc.<\/p>\n

Causes of poverty in India: Some of the important causes of poverty in India are:
\n1) Under development: The basic and a very important cause of poverty in India is under development of Indian Economy. It is observed that an important cause of rural poverty in India is under development or backwardness of the agricultural sector, due to problems like small and scattered land holdings, lack of adequate agricultural inputs, lack of credit facilities, etc. The highly capital-intensive nature of industrialization in India leading to reduction in employment opportunities and lower labour capital output ratio is yet another cause of poverty in India.<\/p>\n

2) Unemployment and low level of wages: Another cause of poverty in India is existence of under-employment and unemployment along with low rates of wages.
\nHigh growth rate in the population country, leading to surplus labour along with low skills and low productivity of Indian labour are responsible for low wage rates and poverty in India.<\/p>\n

3) Population Explosion: Population explosion or rapid growth in the population in the country is an important cause of poverty in India. The population of India has increased from 36.11 crores in 1951 to 127.42 crores by 11-7-2015. Such rapid growth of population along scarcity of capital and low level of technology is responsible for prevailing poverty in India.<\/p>\n

4) Inequality in assets and income distribution: It is observed that an important cause of relative poverty is inequality in the distribution of assets and income among rich and poor. The reason for the poverty of most of the rural people (agricultural labourers) is that they have less than a hectare of land. Similarly, reason for urban poverty is inequality in the ownership of industrial and commercial assets.<\/p>\n

5) Low availability of Essentials: Another important cause of poverty in India is low availability and shortage of essential goods with the population of the country increasing rapidly on one hand and with country\u2019s productive system unable to produce the goods needed for the growing population on the other. There is general shortage and low availability of essential goods. Such shortage of essential goods leading to their prices and eroding the real incomes of the poor people, make them much poorer.<\/p>\n

6) Inflation: Another reason for poverty in India is a continuous rise in the general price level. The continuous rise in the general price level (inflation) by eroding the purchasing power of middle and poorer sections of the society mostly, contributes to an increase in poverty in the society.<\/p>\n

7) Failure of Five Year Plans: An important objective of planning in India is to provide minimum standard of living and removal poverty in the country. However, the growth rate achieved during 6 decades of India planning in India is not sufficient to remove poverty in India. Hence even in 2011-\u201912, the poverty ratio in India is as high as 21.9%.<\/p>\n

8) Social factors: Along with others, a number of social factors are also responsible for poverty in India. Lack of initiative resourcefulness and dynamism among Indian people, caste system, joint family system, fatalistic attitudes among Indians are obstacles to Economic progress and are responsible for perpetual (endless) poverty in India.<\/p>\n

9) Political factors: Political factors, along with the exploitation of India by British rulers before independence are also responsible for poverty in India. Political parties and political leaders, with selfish interest of capturing and retaining political power and accumulating personal wealth at the cost of Nation’s development, along with growing political and administrative corruption and inefficient government administration are responsible for perpectual poverty in India.<\/p>\n

10) Institutional factors: Institutional factors like semi-feudalism in rural areas, the inability and failure of social and political institutions in rural areas to implement land reforms and technological reforms are also responsible for poverty in India. The fact that the benefit of various government subsidies and concessions not reaching the really deserving poor in India is another cause of perceptual poverty in India.<\/p>\n

\"AP<\/p>\n

Question 6.
\nWrite about the remedial measures to reduce poverty in India.
\nAnswer:
\nIt is very difficult to reduce poverty (in India) since it is closely related to unemployment.
\nIt can be reduced in the long term through encouraging sectors that absorb more workers and through the empowerment of poor.<\/p>\n

Some of the important programmes \/ remedial measures that can reduce poverty in India are:
\n1) Adoption of a pro-poor strategy instead of emphasizing on liberalization and GDP growth: In which priority is given to reduce unemployment in unorganised sector. In this efforts are made to strengthen agricultural co-operations and development of irrigation through watershed development with people\u2019s participation.<\/p>\n

2) Stimulating Agricultural Growth: It is possible to reduce the poverty in India by stimulating or stepping up the growth rate in the predominant sector of the Economy, i.e., agricultural sector. It is observed that the growth rate in the agricultural sector was very low 2.7% in 9th Five Year Plan and 1.7% in 10th Five Year Plan. The growth rate in agricultural sector can be increased by measures like taking up soil health programmes, water conservation measures reduction of interest on crop loans, setting up of Krishi Vignan drasto train farmers empowerment of village panchayats, etc.<\/p>\n

3) Increasing productivity and job quality of the unorganised sector: It would possible to reduce to poverty in India if efforts are made to increase productivity and job quality in unorganized sector and by generating more job opportunities in unorganized sector.<\/p>\n

4) Improving the share of wages in the process of growth to achieve poverty reduction: It would be possible to reduce poverty in India by enhancing improving the share of wages in the process of growth process, which has decreased from 70.8% in 1989-90 to 36.5 % in 2009-10.<\/p>\n

5) Empowerment of poor through education and skill formation: It would be possible to reduce poverty in the country by empowering poor through education and skill formation\/development programmes.<\/p>\n

6) Empowerment through provision of better health: Health and poverty are closely related. As long term ill health results in an increase in poverty to reduce poverty, efforts are to be made to provide improved health and medical facilities in rural areas, where most of the poor live.<\/p>\n

7) Empowering the poor through provision of housing: It would be possible to reduce poverty in the country by empowering the poor through subsidised and free housing schemes sponsored by government.<\/p>\n

8) Empowerment (of poor) through skill formation and expansion of IT sector:
\nPoverty in the country can be reduced if efforts are made by the government through improving the skills of poor and expansion of IT sector to rural areas where most of the poor people live.<\/p>\n

9) National Rural Employment Guarantee Scheme: It would be possible to reduce poverty in the country if minimum employment guarantee programmes like a National Rural Employment Guarantee Programme is effectively implemented in the country.<\/p>\n

All the above poverty reduction measures suggest\/indicate the removal of poverty, in the long run, is possible a) through accelerating\/increasing the economic growth and b) through redistribution of National Income in favour of poor.<\/p>\n

Question 7.
\nWhat is the role of Microfinance in reducing poverty in India?
\nAnswer:
\nThe term “Microfinance refers to the provision of thrift, credit and other financial services and products of very small quantities to the poor in rural semi-urban and Urban areas for enabling them to raise their income levels and living standards” – NABARD<\/p>\n

Role of Micro Finance in reducing poverty:
\nIn all developing economies including India, microfinance is playing an important role in poverty reduction, which is as below:
\n1) Some of the important benefits of Micro finance is its easy accessibility. Through simple procedures and easy repayment schedules it is easily accessible to poor and weaker sections of the society.<\/p>\n

2) By providing the working capital needs of small scale units cottage and village industries in rural areas, it helps in reducing rural poverty.<\/p>\n

3) Microfinance institutions by financing the women-based self-help groups in rural areas helps in the developing organizational skills among women and their empowerment.<\/p>\n

4) Micro finance (institutions) enables the members of socially and economically disadvantaged sections to get literate enlightened, progressive and come up in life.<\/p>\n

5) Since micro finance institutions provide the money and fund retirements of rural artisans, self employed in villages they enhance employmet opportunities in rural areas.<\/p>\n

6) Micro finance helps in increasing school enrollment ratio and in reducing dropout ratio since the families which receive the benefit of Micro finance are likely educate their children.<\/p>\n

7) An important advantage of micro finance is it is an important method of lending\/financing without any collateral security.<\/p>\n

8) Micro finance is an important government initiative that aims at improving the standards of livings of people belonging to suppressed classes in the society.<\/p>\n

\"AP<\/p>\n

Question 8.
\nExplain the causes for unemployment and remedial measures to reduce unemployment.
\nAnswer:
\nThe term unemployment refers to a situation in which those who are willing to and able to work, with need to work are to find employment or jobs at the prevailing market wage rate.<\/p>\n

Causes of unemployment in India:
\n1) Rapid rate of population growth: An important cause of unemployment in India is high rate of growth in the population of the country. Even though decreasing in recent years the present annual growth rate of population of India of 1.63% per annum is still very high and is a cause of unemployment in India.<\/p>\n

2) Jobless growth: Another cause of unemployment in India i.e., Jobless growth.
\nEven though in recent years the Economic Growth rate achieved is reasonable and is around 7-8% per annum, it has not resulted in generation of additional employment” opportunities and is a source of growing unemployment in the country.<\/p>\n

3) Inappropriate technology: In India there acts shortage of capital but abundunt availability of labour. However both in agriculture and industry there is increased use of machine power and modern technology replacing manual labour. Being a labour surplus country, the use of modern technology and machine power is an in appropriate technology that is responsible for growing unemployment in the country.<\/p>\n

4) Lack of rural industrialisation: After independence and since the commencement of planning all industrialisation in India has taken
\nplace in Urban areas only. The nonlocation of new industries in rural areas, where birth rates are comparatively higher (than urban areas) is another cause of unemployment in India.<\/p>\n

5) Inappropriate Education of systems: Another reason for unemployment in India is its defective education system which does not provide youth of the country the necessary the job procuring skills and abilities. According to Prof. Gunnar Myrdal, India\u2019s education system does not aim of development of human resources.<\/p>\n

6) Lack of Manpower planning: Yet another reason for unemployment in India is lack of proper man power planning. There is no proper planning regarding likely demand for skilled man power in the country. The decision of the AP government (before bifurcation) giving permission to opening up of private Engineering colleges in large number is an example of lack of proper manpower planning in India.<\/p>\n

7) Social factors: Various social factors and changes in government policies are also responsible for growth of unemployment in India. The policy of the government giving equality to women alone status with men, giving reservations to women in educational institutions and jobs the changed attitude of parents to provide higher and better education to their daughters, etc. have resulted in more women job aspirants and resulted in an increase in unemployment in India.<\/p>\n

8) Lack of self-employment opportunities: Another reason for on unemployment in India lack of initiative among the unemployed people\/youth to create self-employment opportunities. Even though central and state governments are coming forward with heavy subsidies and concessions, educated youth do not have zeal and do not come forward to avail of those self-employment opportunities and remain unemloyed.<\/p>\n

9) Decline of cottage industries: Prior to British rule, cottage and village industries in India used to provide a lot of employment in rural areas. But British rule for more than 3 centuries, and rapid industrialization after independence have resulted in closure of many cottage industries in India and resulted in an increase in unemployment in India.<\/p>\n

Remedial measures to reduce unemployment in India: Some of the important measures that may reduce unemployment in India are:
\n1) Rapid Economic Development: An important measure that helps in reduction of unemployment is achieving rapid economic development in the country. Such rapid Economic Development by providing more employment opportunities to educated youth and by diverting surplus population from agriculture to industries can reduce unemployment in the country.<\/p>\n

2) Liberal Institutional finance for self employed: It would be possible to reduce unemployment to some extent if liberal loans are given by financial institutions to unemployed people to start their employment generating new units.<\/p>\n

3) Promoting small scale industrial sector: Another important remedy to solve the problem of unemployment in India is to develop and encourage small scale and rural industries in the country. If the government encourages small scale industries through various facilities and concessions like interest free loans free allocation of land, etc. it would be possible to reduce unemployment mainly in rural areas.<\/p>\n

4) Initiating Major government Employment Programmes: The following employment generation programmes initiated by Government of India in Rural and Urban areas of India from time to time can help in reducing unemployment in India, (a) Integrated Rural Development Programme (IRDP), started in 1978-79, (b) The Scheme of Training Rural Youth for Self Employment (TRYSEM) started in 1979, (c) The Rural Landless Employment Guarantee Programme (RLEGP) started on 15-8\u00ac1983, (d) Self Employment to the Educated Urban Youth (SEEUY) started in 1983, (e) Self Employment Programme to the Urban Poor (SEPUP) launched in 1986, (f) Jawahar Rozgar Yojana (JRY) started in February 1989, (g) The National Rural Employment Programme (NREP) started in 6th Five Year Plan (h) The Employment Assurance Scheme, (EAS) launched between 1996-2000, (i) The Swarna Jayanthi Shahari Rozgar Yojana (TSRY) to provide employment to Urban youth, (j) Prime Minister Rozgar Yojana (SJSRY) (k) Swarna Jayanthi Gram Swarozgar Yojana (SGSY) launched in April 1999, (1) Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) started from 2-10-2009 and (m) Deen Dayal Upadhyaya Grameen Kaushal Yojana (DDUGKY) started from 25-9-2014.<\/p>\n

Short Answer Questions<\/span><\/p>\n

Question 1.
\nExplain the incidence of Unemployment.
\nAnswer:
\nIndia being a developing Economy is suffering with the problem of unemployment. Factors like rapid growth of population, jobless growth, lack of rural industrialisation, etc. are some of the causes of unemployment in India.<\/p>\n

To measure the employment and unemployment in India, The National Sample Survey Organisation (NSSO) has developed some important indicators – namely – Usual Status Concept, weekly status concept and Daily Status Concept.<\/p>\n

The unemployment rate in India averaged 7.58% between 1983 and 2012 reaching an all time high of 9.4% in 2009 and recording a low of 5.2% in 2012.<\/p>\n

However, unemployment measured in UPS has decreased from 4.23% in 1977-78 to 2.81% in 1999-00 and ultimately to 2.7% in 2011-72 with 3.06% in 2004-’05.<\/p>\n

But unemployment, as measured in CDS has decreased from 8.18% in 1977-78 7.31% in 1999-00 and ultimately to 5.6% in 2011-72 even though peaked to 8.28% in 2004-’05.<\/p>\n

Question 2.
\nWhat are the different concepts of poverty ?
\nAnswer:
\nPoverty is a socio-economic phenomenon in which a section of the society is unable to satisfy even the basic necessities of life such as food, clothing, shelter, etc.<\/p>\n

Concepts of poverty:
\n1) Absolute poverty: It refers to those sections of people, with very meager incomes who are unable to get the basic necessities of life like food, clothing, shelter, etc. or unable to maintain minimum standard of living. They are below the poverty line and their incomes are less than minimum cut off level of income needed for human subsistence.<\/p>\n

2) Relative poverty: Relative poverty generally refers to inequalities in the distribution of income in the society. Even though living above the minimum subsistence level the people with lower incomes are relatively poor compared with those with higher incomes.<\/p>\n

3) Poverty line: The term poverty line refers to minimum cut off level of annual income of the household which is needed for human subsistence. The households whose annual income is less than such cut off level income are said to be poor. It is an important indicator or measuring rod to measure poverty in the country.<\/p>\n

4) Poverty gap index: The term poverty gap index is defined by the mean distance below the poverty line expressed as a proportion of that line. It measures the transfer of money that would bring the income of every poor person exactly upto the poverty line there by eliminating his poverty. Poverty gap thus, reflects the depth poverty and incidence poverty in the society.<\/p>\n

\"AP<\/p>\n

Question 3.
\nWhat are the different types of unemployment? [Mar ’19 (AP&TS); May 18, Mar. 17]
\nAnswer:
\nUnemployment refers to a situation in those who are able and willing to work, at the prevailing market wage rate are unable to find employment or jobs.<\/p>\n

Different types of unemployment:
\n1) Educated Unemployment: Educated people, especially educated youth remaining unemployed or unable to find any find any job\/employment is generally referred as educated unemployment. Such unemployment is generally found in Urban areas. The defective educational system, lack of aptitude and technical qualifications among job seekers, the policy of the government of opening up of new higher educational institutions are the causes educated unemployment.<\/p>\n

2) Industrial Unemployment: The unemployment which is found in the industrialised areas of towns and urban areas is generally referred as Industrial unemployment. Such industrial unemployment arises due to reasons like low employment elasticity in manufacturing sector, excessive migration of people from villages to urban areas, slow industrialisation in the country after independence, etc.
\nB) In Rural Areas:
\n1) Seasonal Unemployment: It is the unemployment which is found in agricultural sector and in rural areas. Since agricultural is seasonal in nature it provides employment to rural people only in a part of the year. The unemployment which rural people find for 7 to 8 months in a year including summer is called seasonal unemployment. It arises mainly due to lack of irrigation facilities.<\/p>\n

2) Disguised Unemployment: It is the unemployment which is generally found in rural areas and in agricultural sector. It refers to employing more number of people in agricultural activities than are required. Even if some workers are removed from such employment, output or agricultural production does not decrease. In other words the marginal productivity of last worker employed (Marginal worker) is zero or nil.<\/p>\n

C) Other types of unemployment:
\n1) Cyclical unemployment: In capitalistic economies, there will be periodical upswings or fluctuations in economic\/business activity called as trade cycles. The large scale unemployment which is found during the “depression” stage of business cycle is called as cyclical unemployment.<\/p>\n

2) Structural unemployment\u2019: It is the unemployment created due to the in ability of the economy to create adequate employment opportunities to those who are ready to work. It is the unemployment which arises due to under utilisation of available resources and lower productive capacity of the economy. The unemployment which 4 prevails in all developing economies is basically structural unemployment.<\/p>\n

3) Under-unemployment: It refers to a situation in which highly skilled and educated workers getting employed in low paid jobs. This is different from unemployment in that the individual is working but is not working at his full capacity.<\/p>\n

4) Frictional unemployment: It is the unemployment created due to imperfections in labour markets. It is the unemployment which arises due to lack information about job availability, ete.-and arises basically due to mismatch between workers and jobs.<\/p>\n

It can be removed by providing information about availability of job information to unemployed people.<\/p>\n

Question 4.
\nWrite briefly about Employment Guarantee Act.
\nAnswer:
\nThe National Rural Employment Guarantee Act was passed in 2006 and was renamed as “Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) with effect from 2-10-2009.<\/p>\n

The main objective of the Act is to provide at least 100 days of guar an led employment, in a financial year, to at least one adult member of every household, wno comes forward or volunteers to do unskilled manual work. At least, 33% of the beneficiaries selected should be women. The important objectives of this Act is reduce rural poverty and rural unemployment through simultaneous taking up of agricultural and land development activities in the Villages.<\/p>\n

Question 5.
\nExplain briefly about Deen-J)ayal Upadhyaya Grameena Koushalya Yojana. [March 2018]
\nAnswer:
\nThis was launched on 25-9-2014 the 98th birth day of pandit Deen Dayal Upadhyaya. The important objective of this yojana is train 10 lakh rural youth for jobs in 3 years i.e., by 2017. The important objective is this scheme is to reduce rural unemployment through training of International standards. The minimum age for selection into this Yojana is 15 years. A sum of Rs. 1500 crores was allotted to this scheme in 2015-T6 budget.<\/p>\n

Question 6.
\nMicro finance
\nAnswer:
\nThe term Micro finance refers to provision of thrift credit and other financial services in small quantity to the poor people to raise their income levels and living standards.<\/p>\n

In poverty eradication Micro Finance is having an important role. It is an important source of working capital to the rural based cottage and small scale industries. It is an easy way financing, easily accessible to poor and weaker sections of the society. With easy repayment schedules and with simplified lending procedures, requiring no collateral security of assets it is easily accessible to all poor people. It enhances school enrollment ratio in villages, reduces school dropout ratio and enhances organisational skills among poor people.
\nHowever it is also pointed that micro finance has not resulted in an increase in the incomes of the rural poor, but has driven them into debt trap, leading to their suicides.<\/p>\n

Question 7.
\nMGNREGS [May 2017]
\nAnswer:
\nMahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) was started on 2-10-2009 with the objective of providing at least 100 days of guaranteed wage employment to rural unemployed. In this, at least one adult member of every household is provided,who is prepared to do unskilled manual\/physical labour. At least 33% of the beneficiaries selected should be women. A wage rate of Rs. 100 per day to a worker selected is to be disbursed through the post office. It is an important employment guarantee programme that aims at agricultural and integrated rural development, Village panchayats have a very important role in planning, implementation ana monitoring of this scheme.<\/p>\n

\"AP<\/p>\n

Very Short Answer Questions<\/span><\/p>\n

Question 1.
\nNational Rural Employment Guarantee Scheme
\nAnswer:
\nIt was launched on 2-10-2001 with the objective of providing guaranteed wage employment for at least 100 days in a financial year, to at least 1 adult member of each rural family with a daily wage of Rs. 100 per day. It is a programme launched at all India level to duce unemployment in rural areas.<\/p>\n

Question 2.
\nRelative poverty
\nRelative poverty, generally refers to the inequalities in the distribution of income, wealth and standards of livings across the society. Even though living above the minimum subsistence level the people with lower incomes are relatively poor when compared with those with higher incomes.<\/p>\n

Question 3.
\nAbsolute Poverty [March 2018]
\nAnswer:
\nThe term absolute poverty refers to those sections of people with very meagre incomes, who are unable to get the basic necessities of life like food, clothing and shelter, etc. They are below the poverty line and their incomes are less than the minimum cut off level income needed for human subsistence.<\/p>\n

Question 4.
\nTRYSEM [Mar ’19 (AP)]
\nAnswer:
\n“The Scheme of Training Rural Youth for Self Employment” is an important scheme started in 1979 to give necessary training to Rural Youth for their self employment. It aims at reducing rural unemployment through self employment programmes in rural areas.<\/p>\n

Question 5.
\nDisguised Unemployment [May 2018; May ’17]
\nAnswer:
\nIt is the unemployment which is generally found in rural areas and in agricultural sector. It refers to employing more number of people in agricultural activities than are required. Even if some of the existing workers are removed from work output or agricultural production does not change.<\/p>\n

Question 6.
\nPoverty gap Index
\nAnswer:
\nThe term poverty gap index refers to the mean distance below the poverty line, expressed as a proportion of that line. It measures (indicates) the transfer of money that would bring the income of every poor person exactly up to the poverty line. It is an important indicator of the depth of the poverty in country.<\/p>\n

Question 7.
\nUsual Status concept of Unemployment
\nAnswer:
\nUsual Status concept of Unemployment is tool that measures the number of persons who remain unemployed for a major part of the year. It is an indicator of chronic or long term unemployment in the economy.<\/p>\n

Question 8.
\nMicrofinance [March 2017]
\nAnswer:
\nThe term Micro-finance refers to the provision of credit and other financial requirements, of the poor in rural semi-urban and urban areas, in very small quantities, to enable them cv, raise their income levels and living standards.<\/p>\n

\"AP<\/p>\n

Question 9.
\nPer Capita Income [Mar ’19 (TS); May ’18]
\nAnswer:
\nThe average income or the income received on an average by each individual in a country is called Per Capita Income. It can be found by dividing the Net National Income of the country with the population of the country.
\n\"AP<\/p>\n","protected":false},"excerpt":{"rendered":"

Students must practice these AP Inter 2nd Year Economics\u00a0Important Questions 3rd Lesson National Income to boost their exam preparation. AP Inter 2nd Year Economics Important Questions 3rd Lesson National Income Long Answer Questions Question 1. Explain the National Income Trends in India. Answer: National Income can be defined as the net money value of all … Read more<\/a><\/p>\n","protected":false},"author":5,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"spay_email":""},"categories":[14],"tags":[],"jetpack_featured_media_url":"","_links":{"self":[{"href":"https:\/\/apboardsolutions.com\/wp-json\/wp\/v2\/posts\/32280"}],"collection":[{"href":"https:\/\/apboardsolutions.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/apboardsolutions.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/apboardsolutions.com\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/apboardsolutions.com\/wp-json\/wp\/v2\/comments?post=32280"}],"version-history":[{"count":3,"href":"https:\/\/apboardsolutions.com\/wp-json\/wp\/v2\/posts\/32280\/revisions"}],"predecessor-version":[{"id":32318,"href":"https:\/\/apboardsolutions.com\/wp-json\/wp\/v2\/posts\/32280\/revisions\/32318"}],"wp:attachment":[{"href":"https:\/\/apboardsolutions.com\/wp-json\/wp\/v2\/media?parent=32280"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/apboardsolutions.com\/wp-json\/wp\/v2\/categories?post=32280"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/apboardsolutions.com\/wp-json\/wp\/v2\/tags?post=32280"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}