Concepts Related To National Income, Unemployment & Poverty

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I heartily welcome you to read the post on these concepts.

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National Income

It is the total value of all goods and services which are produced in a country by all sectors in an year is called as national income. or It is the total market value of goods and services produced in a country, counted without duplication 

is called national income.

Per capita Income

Per capita income = Total national income / Total population. It is the average income earn by all people in the country. When the level of per capita income is more, Automatically the economic growth that is output is also more and that leads to its economic development.

Unemployment

It is a situation when a labor doesn’t get employment despite of his ability and willingness to work at 

the existing wage rate is called unemployment. -- when a labour is eligible and willing to work at a existing current market price, but not in a work is called as unemployment.

It is an important measurement tool/indicator for economic development.

Chronic underemployment

This is measured in number of persons that is, who remained unemployment for a measure part of 

an year. This measure is most appropriate to those in search of regular employment. For example, 

educated and skilled persons who may not accept casual work.

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It is simply the period of remaining unemployed over an year.

Weekly status unemployment

It refers to a person who doesn’t find even an hour of work during a week is called weekly status 

unemployment.

Structural unemployment 

It is related to the inadequate of productive capacity to create enough jobs for all those who are able 

and willing to work.

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When the supply of labours increases without an increase in the demand for that labours It can be called as a structural unemployment in an economy.

Seasonal unemployment

Seasonal unemployment appears due to a change in demand for labor because of seasonal variations. This situation is called as a seasonal unemployment. This can be understood in agriculture sector in India. It provides employment for only few seasons. 

Open unemployment

When the laborers live without any work and when they do not find work to do is called open 

unemployment.

Educational unemployment

It refers to a person who is trained and educated fails to get a suitable job according to his qualifications is 

called educated unemployment.

Cyclic Unemployment or cyclical unemployment

The main cause of cyclical unemployment is the change in business activities. This type of 

unemployment is found in developed economies. It occurs due to up and downs in a business.

Disguised Unemployment

A laborer when his marginal productivity is zero or more people are employed then what is needed 

is disguised unemployment.

Here the productivity of labour is 0. so, even he is removed from the work the total production will not be affected or influenced.

Frictional Unemployment

This is the temporary unemployment which exist during the period of transfer labor from one 

occupation to another. Generally it happens due to imperfection of labour.

Non Employment

It refers to the people who works in their household activities without monetary reward is called Non 

Employment. For Example, Services of a Mother. It cannot be measured in terms of money or price.

Under Employment

Under utilization of labour, time of workers, some of the workers classified as usually employed but do not 

have work or their time is not fully utilized is called under employment.

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When the abilities of a labour is not utilised fully, it is called as underemployment.

Technological Unemployment

when the introduction of new technology causes displacement of workers is called technological 

unemployment.

Poverty Line

It is the midpoint of monthly per capita expenditure class having a daily calories of 2400 of a person 

in rural area and 2100 calories per person in urban areas.

Poverty Gap

Poverty gap = poverty line – (minus) average consumption expenditure of the poor / (divided by) 

poverty line.

Absolute poverty

A persons whose income and consumption expenditure is very less so he lives below the substituent 

level is called absolute poverty. His income doesn’t allows him to satisfy even his basic needs like 

shelter food and etc.

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The end

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