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Define Gross Domestic and Gross National Product.

The total money value of all goods and services (like farmers producing raw material, lorries helping in transportation of products, industries involved in producing finished goods etc) produced in a country during a year is called its gross domestic product for the year. If the amount paid for the imports and the money got from the exports is added, we get the net earnings of the country for the year. This value maybe positive or negative or zero depending on which value was greater, the value of imports or exports or if they were equal. If we add this to the earnings from foreign transaction, we get the gross national product of a country for the year.


How do you compute the worker population of a country?

In order to find the worker population ratio of India, one has to divide the total number of workers in the country by the total population of the country and multiply by 100.


Name the eight industrial divisions into which economic activities are divided.

Economic activities are divided into eight industrial divisions namely:

1. Agriculture

2. Mining and Quarrying

3. Manufacturing

4. Electricity, Gas and Water Supply

5. Construction

6. Trade

7. Transport and Storage

8. Services


Discuss the state of employment in our country.

In our country, the dependence on agriculture is still high. Over the few decades, self employment remains the major source of employment. Casual labour has been on the rise. Most of our workers are casual workers and the number of salaried workers has dwindled down.


Discuss about formal and informal workers.

We classify workers as workers in the formal or organized and informal or unorganized sectors. All the public sector enterprises and those private sector firms with more than 10 workers are called the organized sector and the workers are called formal workers. The others are called informal workers and they include farmers, self employed individuals, people running small enterprises and those employed in such enterprises. The people employed in the formal sectors earn more and also enjoy social security measures. It was thought by our planners that as the economy grew the number of workers in the formal sector would increase but that has not been the case.


Discuss unemployment.


Today unemployment is a major factor which is affecting our economic growth. NSSO has defined unemployment as a situation in which all those who do not have work owing to lack of jobs seek work through employment exchanges, friends, relatives, intermediaries or by making applications to prospective employers or express their willingness to work under the prevailing conditions of work and remuneration. Economists define an unemployed person as a person who is unable to get employment for even one hour during half a day. This is just one definition for unemployment.


One kind of unemployment is called open unemployment. People looking for advertisements in papers for jobs, going to factories and offices hunting for a job vacancy, trying to gain employment through friends or relatives, registering in the employment exchange and staying at home when there is no job( this is what people in the rural sector do) are all examples of open unemployment.


Economists have termed the unemployment existing in the Indian farms as disguised unemployment. It is disguised because the actual need of people working in the farm is much lesser than the number of workers employed by the farmer, these people would include his family which does not get paid. A study of 1950s revealed that about 1/3rd of our agricultural workers are disguisedly unemployed.


Seasonal Unemployment is a kind of unemployment which happens on a seasonal basis. People especially in the rural sector do not have work in the period between sowing and harvesting. They try to gain employment elsewhere during this time.


In India, people cannot be unemployed for a long time because of their very backward economic condition. This condition forces them to take up any job no matter how unclean or unpleasant, in order to meet atleast some of their financial needs.



Calculate the worker population ratio for the following data.
Population: 100 million
Number of male workers: 25 million
Number of women workers: 10 million


Total Number of workers = 25+10 = 30 million.

Hence the worker population ratio is 30miillion/100 million x 100 = 30.


Why is the estimation of women workers wrong?

Many women do a lot of jobs like cooking, washing, cleaning and other domestic work for which they are not paid. Hence according to the definition of workers they do not get counted as workers while in reality they are. This is why the estimation of women workers is wrong.

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