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What is disguised unemployment and where is it commonly found?
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Disguised unemployment occurs when more people are employed than actually needed, commonly found in agricultural settings.
How does the expenditure method calculate national income?
The expenditure method calculates national income as the sum of consumption (C), investment (I), government spending (G), and net exports (X-M).
Explain fiscal policy and monetary policy.
Fiscal policy involves government spending and taxation to influence the economy, while monetary policy involves how a central bank manages money supply and interest rates.
What are the main focuses of microeconomics and macroeconomics?
Microeconomics focuses on individual units like a person or company, while macroeconomics looks at the economy as a whole, such as national income.
Explain the value added method for calculating national income.
The value added method sums the added value at each production stage to calculate national income.
Who is considered the father of microeconomics and what is his main work?
Adam Smith is considered the father of microeconomics, and his main work is 'Wealth of Nations'.
Describe the primary, secondary, and tertiary economic sectors.
The primary sector involves extractive industries like agriculture and fishing. The secondary sector consists of manufacturing industries, and the tertiary sector provides services such as teaching and transportation.
Who is considered the father of macroeconomics and what is his main work?
John Maynard Keynes is considered the father of macroeconomics, and his main work is 'General Theory of Employment'.
What monetary components are included in M3?
M3 includes currency in circulation, demand deposits, savings deposits, and time deposits.
What was the primary focus of the first Five-Year Plan in 1951-1956?
The primary focus of the first Five-Year Plan was on agriculture, with a target growth rate of 2.1%, and it achieved 3.6%.
Describe the difference between structural and frictional unemployment.
Structural unemployment is due to a mismatch of skills, while frictional unemployment occurs when individuals are transitioning between jobs.
How is the Consumer Price Index (CPI) used in measuring inflation?
CPI measures changes in the price level of a market basket of consumer goods and services purchased by households, serving as an indicator of inflation.
What were the main challenges faced during the third Five-Year Plan?
The third Five-Year Plan faced challenges like wars and famine, leading to an achieved growth of 2.8% against a target of 5.6%, despite a focus on self-reliance.
Differentiate between GDP and GNP.
GDP (Gross Domestic Product) measures the value of goods/services within a country, while GNP (Gross National Product) measures goods/services produced by nationals, including those abroad.
What are demand-pull and cost-push inflations?
Demand-pull inflation occurs when high demand increases prices, while cost-push inflation results from increased production costs leading to higher prices.
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