Quench Your 'Economics' Query!

Definition:  Unemployment is defined by the Bureau of Labor Statistics as people who do not have a job, have actively looked for work in the past four weeks, and are currently available for work. Also, people who were temporarily laid off and were waiting to be called back to that job are included in the unemployment statistics. Those who have not looked for work within the past four weeks are no longer counted among the unemployed. The BLS also removes them from the labor force. Most people leave the labor force when they retire, go to school, have a disability that keeps them from working, or have family responsibilities. Even people who would like to work are excluded if they aren't actively looking for work. Here's how the BLS calculates the Labor Force Participation Rate. The BLS does keep track of those people, though. They are separately reported in the Jobs Report. Those who have looked for work within the past 12 months, but...

Different Types of Unemployment in India )           Structural Unemployment: – This type unemployment is associated with economic structure of the country. When demand for labour falls short to supply of labour due to rapidly growing population and their immobility, the problem of unemployment appears in the economy. Besides, due to growing population, rate of capital formation falls down which again limits the employment opportunities, this type of structural unemployment is basically related to this category of unemployment. 2)          Under-Employment :- Those labourers are under-employment who obtain work for but their efficiency and capability are not utilized at their optimum and as a result they contribute in the production upto a limited level. A country having this type of unemployment fails to exploit the efficiency of their labourers. 3) ...

Reserve Bank of India Establishment: The Reserve Bank of India was established in  1935   under the provisions of the  Reserve Bank of India Act, 1934  in Calcutta, eventually moved permanently to  Mumbai . Though originally privately owned, was nationalized  in 1949. Organisation and Management: The Reserve Bank”s affairs are governed by a  central board of directors . The board is appointed by the Government of India for a period of  four years. Full-time officials :  Governor  and  not more than four Deputy Governors.  The current Governor of RBI is  Mr. Urjit Pattel . There are 4  Deputy Governors ,  BP Kanungo, S S Mundra, N S Vishwanathan and Viral Acharya . Nominated by Government:  ten Directors from various fields and two government Officials Others: four Directors – one each from four local boards Main Role and Functions of RBI Monetary Authority : Formulates, implements and moni...

SUPPLY CURVE DEFINITION of 'Supply Curve' The supply curve is a graphical representation of the relationship between the price of a good or service and the quantity supplied for a given period of time. In a typical representation, the price will appear on the left vertical axis, the quantity supplied on the horizontal axis.  BREAKING DOWN 'Supply Curve' The supply curve will move upward from the left to the right, which expresses the  law of supply : as the price of a given commodity increases, the quantity supplied increases, all else being equal. Note that this formulation implies that price is the independent variable, and quantity the dependent variable. In most disciplines, the independent variable appears on the horizontal or  x -axis, but economics is an exception to this rule. For example, if the price of soybeans rises, farmers will have an incentive to plant less corn and more soybeans, and the total quantity of soybeans on the market...

Budget Line Definition:  The  Budget Line , also called as  Budget Constraint  shows all the combinations of two commodities that a consumer can afford at given market prices and within the particular income level. We know that the higher the indifference curve, the higher is the utility, and thus, utility maximizing consumer will strive to reach the highest possible Indifference curve. But, he has two strong constraints:  limited income and given the market price of goods and services . The income in hand is the main constraint (budgetary) that decides how high a consumer can go on the indifference map. In a two commodity model, the budgetary constraint can be expressed in the form of the budget equation: P x  . Q x  + P y  . Q y  =M Where, P x  and P y  are the prices of commodity X and Y and Q x , and Q y  is their respective quantities. M= consumer’s money income The Budget equation states that the cons...

Indifference curve An indifference curve is a locus of all combinations of two goods which yield the same level of satisfaction (utility) to the consumers. Since any combination of the two goods on an indifference curve gives equal level of satisfaction, the consumer is indifferent to any combination he consumes. Thus, an indifference curve is also known as ‘equal satisfaction curve’ or ‘iso-utility curve’. On a graph, an indifference curve is a link between the combinations of quantities which the consumer regards to yield equal utility. Simply, an indifference curve is a graphical representation of indifference schedule. The table given below is an example of indifference schedule and the graph that follows is the illustration of that schedule. Table: Indifference schedule Combination Mangoes Oranges A 1 14 B 2 9 C 3 6 D 4 4 E 5 2.5 Figure: Graphical representation of indifference curve Assumptions of indifferenc...