1. BASIC ECONOMIC PROBLEMS PRESENTED BY ANJALI DHANGADHRIA (130260107007)

2. Index  Introduction  Poverty  Types of poverty  Causes of poverty  Poverty reduction

3. The economic problem  All societies face the economic problem, which is the problem of how to make the best use of limited, or scarce, resources.  The economic problem exists because, although the needs and wants of people are endless, the resources available to satisfy needs and wants are limited.

5. Resources are limited in two essential ways :  Limited in physical quantity, as in the case of land, which has a finite quantity.  Limited in use, as in the case of labour and machinery, which can only be used for one purpose at any one time. The basic economic problem are :-  Poverty  Unemployment  Inflation

7. What is Poverty :-  Poverty is the inability of getting choices and opportunities, a violation of human dignity.  It means lack of basic capacity to participate effectively in society. It means not having enough to feed and clothe a family, not having a school or clinic to go to, not having the land on which to grow one’s food or a job to earn one’s living, not having access to credit.  It means insecurity, powerlessness and exclusion of individuals, households and communities.

8. Types of Poverty :-  Absolute Poverty  Relative Poverty

9. Absolute Poverty :-  Absolute Poverty :- “a condition characterized by severe deprivation of basic human needs, including food, safe drinking water, sanitation facilities, health, shelter, education and information. It depends not only on income but also on access to services.”

10. Relative Poverty :-  Relative poverty views poverty as socially defined and dependent on social context, hence relative poverty is a measure of income inequality. Usually, relative poverty is measured as the percentage of population with income less than some fixed proportion of median income.social context

11. Difference :-  Absolute Poverty is considered if your not able to provide your basic essentials such as clothing and food, and Relative Poverty is when your not able to keep up with people that are able to provide more than the basic essentials.

12. Causes of poverty :-  Poverty has various causes, while some of them can be removed by various measures, eliminating the most complicated underlying causes remains a challenge for both developed and developing nations. Moral depravity is the root cause of poverty.various measures

13.  Some of the causes of poverty include changing trends in a country’s economy, lack of education which causes feminization of poverty, having a culture of poverty, overpopulation, epidemic diseases such as AIDS and malaria, and environmental problems such as lack of rainfall.feminization of povertyoverpopulationAIDSmalaria

14. List of the Causes of Poverty :-  War  Lack of education  Loss of job  Low salary rates  High medical bills  Disasters  Fires  Flood  Lack of or inability to afford adequate health insurance

15. Poverty Reduction :-  Poverty is the state of human beings who are poor. That is, they have little or no material means of surviving—little or no food, shelter, clothes, healthcare, education, and other physical means of living and improving one's life.  Some definitions of poverty, are relative, rather than absolute, poverty reduction would not be considered to apply to measures which resulted in absolute decreases in living standards, but technically lifted people out of poverty.

16. Poverty alone can not be reduced until we take measures to eradicate other issues related to Country and its economy. There are some points through which we can reduce poverty…..  Creating more employment opportunities, so that every individual can fulfill his basic needs.  minimizing corruption related activities so that black money doesn't get generated.  Improvising rural sector and supporting them with necessary machinery.

17.  stop wasting our resources, economy is strengthened by its resources available.  Awareness for self employment and techniques among rural people.  control of population : more demand, less supply. poor people gets more effected.  Imparting quality education so that young ones pave their path to become professionals.  Enhancing export and controlling import supply of goods. benefit for local business.  Abolishing child labor activities. They are future of nation.

19. Introduction to Unemployment. Forms of Unemployment. Remedies of Unemployment in India. Causes of Unemployment. Inflation. Index

20. What is Unemployment..? “ Unemployment means a situation in which people are willing to work, at the existing rate of salary, but they do not get work.”

21. Volunta ry Frictiona l Casual Seasonal Structur a l Technol ogical Cyclica l Disguise d Chronic

22. Voluntary Unemployment  There are some people who are unwilling work at the current salary rate, or  There are some people who get a continuous flow income from their property or other sources and need not work. Voluntary Unemployment is a National waste of human energy.

23. Frictional Unemployment  Temporary phenomenon.  Results when some workers are temporarily out of work while changing jobs.  Also result when the work is suspended due to strikes.  Frictional unemployment is caused by imperfect mobility of labour.

24. Casual Unemployment  Here workers are employed on a day to day basis.  In generally they exist in Construction, catering or agriculture industries.  It occurs due to short-term contracts, which are terminable any time.

25. Chronic Unemployment  When unemployment tends to be a long- term feature of a country it is called chronic unemployment.  Underdeveloped countries suffer from chronic unemployment on account of :-  lack of developed resources and their under utilization  high population growth  backward & even primitive state of technology  low capital formation, etc.

26. Seasonal Unemployment  Industries such as agriculture, the catering trade, trade in holiday resorts, some agro- based activities like sugar mills and rice mills, provide jobs of seasonal nature which are for certain period.  People engaged in such type of work or activities may remain unemployed during the off-season.  So it is Seasonal Unemployment.

27. Disguised Unemployment  This kind of unemployment is a common feature of under developed economies especially of their rural sector.  In short, overcrowding in an occupation leads to disguised unemployment.

28. Suppose, a family farm is properly organized and 4 persons are working on it. If, however, 2 more workers are employed on it and there is no change in output, we may say that these 2 workers are Disguisedly Unemployed.

29. Structural Unemployment  Due to structural changes in the economy, Structural Unemployment may result.  Caused by:- 1)decline in demand, 2)disinvestment, 3)reduction in its manpower requirement.

30. Technological Unemployment Due to the introduction of new machinery, improvement in methods of production, labour-saving devices, etc., some workers tend to be replaced by machines. Their unemployment is termed as technological unemployment.

32. Causes of Unemployment Causes of Unemployment  Jobless Growth.  Increase in Labour Force.  Inappropriate Technology.  Inappropriate Educational System.

33. REMEDIES  Check on population  National employment policy  Strengthening Information Technology sector  Promoting rural non farm Activities  More Industrialization  Promotion of Exports  Change in the Education system

34. Inflation In India

35. INFLATION  “Inflation is nothing more than a sharp upward rise in price level.”  “Too much money chasing, too few goods.”  “Inflation is a state in which the value of money is falling i.e. price are rising.”

36. KINDS OF INFLATION  On the basis of rate of inflation  On the basis of degree of control  On the basis of causes  Demand pull inflation  Cost push inflation

37. INFLATION RATES

38. Increase In Price of Necessary Things

39. Impact on Different Levels Persons