9 Most VSAQ’s of National Income, Poverty and Unemployment Chapter in Inter 2nd Year Commerce (TS/AP)

2 Marks

VSAQ-1 : National Income (OR) Define National Income. (OR) What is National Income?

National income is the total value of all goods and services produced within a country’s borders in a specific period, typically a year. It encompasses the value of goods and services produced in various sectors of the economy and serves as a crucial indicator of a country’s economic performance. National income is calculated by summing up the income earned by individuals, businesses, and the government within the country, considering factors such as wages, profits, rents, and taxes. It provides valuable insights into a nation’s overall economic health and productivity.

VSAQ-2 : Per capita Income (OR) Define per capital income.

Per capita income is the average income of individuals within a nation during a specific period, usually a year. It is determined by dividing the total national income of a country by its population. Per capita income serves as a measure of the average standard of living within a nation and is commonly employed to compare the economic well-being of different countries. This economic indicator is expressed as a monetary value per person and is a significant tool for evaluating the financial prosperity of a country’s citizens.

VSAQ-3 : Unemployment.

Unemployment is a condition that arises when individuals who are capable and willing to work at the current wage rate cannot secure appropriate employment opportunities. It represents a scenario where the workforce’s availability surpasses the labor demand within the job market. Unemployment takes on various forms, including frictional, structural, cyclical, and seasonal unemployment, each attributed to distinct causes and attributes. Effectively addressing unemployment constitutes a central focus for governments and economic policymakers.

VSAQ-4 : Educated Unemployment.

Educated unemployment pertains to a situation in which highly educated individuals struggle to secure employment opportunities that align with their qualifications. This phenomenon is commonly observed in developing nations such as India. Addressing this challenge necessitates enhancements in education and skill development, coupled with proactive measures for job creation and matching skilled workers with suitable positions.

VSAQ-5 : Disguised Unemployment.

Disguised unemployment describes a circumstance in which an individual’s withdrawal from employment has no noticeable impact on overall productivity because their contribution to the work was minimal or negligible. In such cases, it becomes evident that the job may not be fully utilized, and there is surplus labor that could be employed more efficiently elsewhere.

VSAQ-6 : Non-employment.

Non-employment encompasses individuals who participate in household tasks and responsibilities without receiving monetary compensation for their contributions. This can include activities such as homemaking, caregiving, or voluntary work within the household, which, while essential, do not involve formal employment or income generation.

VSAQ-7 : Poverty Line (OR) What is poverty line.

The poverty line is the designated income threshold below which individuals or families are considered to be living in poverty. It serves as a benchmark to assess and measure poverty rates within a population. The poverty line is typically defined based on the minimum income or resources required to meet basic living needs, such as food, shelter, clothing, and healthcare. It varies from one region or country to another, taking into account the cost of living and prevailing economic conditions. Those earning income below the established poverty line are deemed to be living in poverty, while those earning above it are considered to have an income level adequate for sustaining their basic needs.

VSAQ-8 : Poverty Gap.

The poverty gap is a measurement used to assess the extent of poverty within a population by calculating the average income shortfall of individuals or households below the poverty line. It quantifies how far, on average, the income or consumption expenditure of the poor falls below the established poverty line. The poverty gap index is expressed as a proportion of the poverty line itself. This index helps policymakers and researchers understand the depth of poverty experienced by those living below the poverty line. A higher poverty gap indicates a more significant income deficit among the poor, highlighting the severity of poverty in a given area or population.

VSAQ-9 : Multidimensional poverty Index.

The Multidimensional Poverty Index (MPI) is an advanced poverty measurement introduced in 2010, designed to provide a holistic view of poverty by considering various dimensions of well-being. This index goes beyond just income and incorporates factors like health, education, and living standards. To calculate the MPI, the percentage of people living in poverty is multiplied by the average number of dimensions in which they experience deprivation. This comprehensive approach allows policymakers and researchers to gain a more thorough understanding of poverty, enabling them to develop targeted interventions and policies to alleviate multiple aspects of deprivation simultaneously.