98 A 2 Unemployment and Poverty 17 Feb

Unemployment in India.

Part A 

Qts I Explain Cyclical unemployment

1.Cyclical unemployment is the impact of economic recession or expansion on the total unemployment rate.

2.Cyclical unemployment generally rises during recessions and falls during economic expansions and is a major focus of economic policy.

3. Cyclical unemployment is one factor among many that contribute to total unemployment, including seasonal, structural, frictional, and institutional factors.

Qts 2 Explain Structural Unemployment-

1.Technology Change.

2.Population increase.

3.Companies not adopt new technology

4 Government- not make Long term plan for employment Generation

5.Employees  bill become unemployed

Qts 3 Explain  Frictional unemployment

1.Frictional unemployment is a type of short-term unemployment that occurs when workers look for new employment or transition out of old jobs and into new ones. 

2.This temporary period of unemployment is the result of voluntary transitions within an economy.

Qts 4  Explain Disguised Unemployment

1. Disguised unemployment is unemployment that does not affect aggregate economic output.

2.It occurs when productivity is low and too many workers are filling too few jobs.

3.It can refer to any part of the population that is not employed at full capacity.

Qts V  Explain Open unemployment.

People ready to Work.

No Job.

Qts VI  Explain Under employment

Skilled employee working in semi skilled job

It is due to lack of job opportunities in their skill.

Post graduate in Kannada medium working as Police Constable.

Qts VII Explain Seasonal unemployment

Farmers will engage in work during sowing 

Farmers will engage during reaping.

In the mid farmers will not  get work

Qts VIII Explain Technical Unemployment

Technology Change. New technology will come.

Employees who not Learnt new technology will become unemployed

Part B Poverty 

Qts I  Explain Poverty Criteria

Per day person consume less than 2100 Calories of food in Urban area and 2400 Calories of food in Rural area comes under below Poverty line

As per World Bank and UNO person earn less than 1.90 US Dollar per day (in 2011 prices) or 2.15 US Dollar per day (in 2017 pricer), he/she comes under Below Poverty Line.

Qts II Explain Absolute Poverty. 

An individual unable to fulfill basic needs food, Cloth, Shelter he/she comes under Absolute Poverty .

Qts III Explain Relative Poverty

 Middle class people compare themselves with Upper Class. It Called as Relative Poverty.

Part B 

Qts I. Disguised unemployment generally means

(a) large number of people remain unemployed 

(b) Alternative employment is not available

(c) Marginal productivity of labor is zero

(d) Productivity of workers is low

Ans. C

Explanation:

Unemployment that does not affect aggregate output. 

Disguised unemployment exists where part of the labor force is either left without work or is working in a redundant manner where worker productivity is essentially zero.

 An economy demonstrates disguised unemployment, where productivity is low and where too many workers are filling too few jobs.

Qts II. The basic aim of Lead Bank Scheme is that

(a) Big banks should try to open offices in each district

(b) There should be stiff competition among the various nationalized banks

(c) Individual banks should adopt particular districts for intensive development

(d) All the banks should make intensive efforts to mobilize deposits

Ans. C

Explanation:

 Lead Bank Scheme (LBS) was introduced in 1969

The basic idea was to have an "area approach" for targeted and focused banking.

Objectives of LBS :

1. Eradication of unemployment and underemployment.

2. Appreciable rise in the standard of living for the poorest of the poor.

3. Provision of some of the basic needs of the people who belong to poor sections of the society.

Qts III. Consider the following statements 

Assertion (A): Though India's national income has gone up several fold since 1947, there has been no marked improvement in the per capita income level.

Reason (R): Sizeable proportion of the population of India is still living below the poverty line.

In the context of the above two statements, which one of the following is correct ?

(a) Both A and R are true and R is the correct explanation of A

(b) Both A and R are true but R is not a correct explanation of A

(c) A is true but R is false

(d) A is false but R is true

Ans. B

 Explanation:

There has been no marked improvement in the per capita income level due to continuous increase in population.

Per capita income is National income divided by total population.

Hence, there has been no marked increase in per capita income.

Qts IV. Among the following who are eligible to benefit from the "Mahatma Gandhi National Rural Employment Guarantee Act"? 

(a) Adult members of only the scheduled caste and scheduled tribe households

(b) Adult members of below poverty line (BPL) households

(c) Adult members of households of all backward communities

(d) Adult members of any household

Ans. D

 Explanation:

MNREGA provides legal guarantee for 100 years of employment in every financial year to adult members of any rural household willing to do public work related unskilled manual work at the statutory minimum wage.

All adult members of the household, who registered can apply for work. 

To register, they have to be local residents.