QUESTION-Prelims-IAS –ECONOMICS MCQ-27
- The Poverty Reduction and Growth Facility (PRGF) has been established by the IMF to provide further assistance to low income countries facing high level indebtedness.
- FDI reduces cost of production if the labor market is cheaper and the regulations are less restrictive in domestic market.
- FDI opens local industries to outer world and hence exchange of technologies and best practices.
- A Foreign direct investment (FDI) is an investment in a business by an investor from another country for which the foreign investor has control over the company purchased in domestic country.
- Agriculture sector has the worst load of disguised unemployment which is rampant in the sector.
- Disguised unemployment exists where part of the labor force is either left without work or is working in a redundant manner where worker productivity is essentially zero. An economy demonstrates disguised unemployment where productivity is low and where too many workers are filling too few jobs.
- Indian workers fleeing disguised unemployment in agriculture for a better life in industry usually end up in the construction sector, which is the biggest source of jobs, or they join the informal manufacturing sector, both activities with low productivity. Thus informal nature of work increases the prevalence of disguised unemployment.
- Labour Force Participation Rate (LFPR) is obtained by dividing the number of persons in the labour force with the working age population.
- Unemployment Rate (UR) is obtained by dividing the number of those unemployed with the total number of persons in the labour force and not the total population.
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