Test: Employment Growth And Other Issues - 1 - Commerce MCQ

GDP is the final value of the goods and services produced within the geographic boundaries of a country during a specified period of time, normally a year. GDP growth rate is an important indicator of the economic performance of a country. 

When added net factor income from abroad to GDP we get:

• Gross National Product (GNP): When net factor income from abroad (income earned by domestic residents from foreign investments minus income earned by foreign residents from domestic investments) is added to GDP, it gives us GNP. GNP measures the total output of goods and services produced by a country's residents, regardless of their location.

By adding net factor income from abroad to GDP, we are accounting for the income earned by domestic residents from their investments or work abroad, as well as the income earned by foreign residents from their investments or work within the country. This adjustment takes into consideration the international flow of income and provides a more comprehensive measure of a country's economic output.

Therefore, the correct answer is C: Gross National Product (GNP).

Economic activity is the activity of making, providing, purchasing, or selling goods or services. Any action that involves producing, distributing, or consuming products or services is an economic activity. Additionally, any activities involving money or the exchange of products or services are economic activities.

Capital formation refers to investment in tools, machinery, buildings etc. inequalities in the economy is also a reason behind this.

Non-Farm-Sector (RNFS) includes all economic activities viz., household and non-household manufacturing, handicrafts, processing, repairs, construction, mining and quarrying, transport, trade, communication, community and personal services etc. in rural areas.

Hardly 22 percent of women are employed in the country. Roughly 78 percent of women are busy with domestic chores.

Labour force refers to:
There are four options given, and the correct answer is B. Let's break down the explanation into bullet points for better understanding:
- The labour force: It refers to the total number of individuals who are either employed or are actively seeking employment. It includes both employed and unemployed individuals who are willing and able to work.
- Employed individuals: These are people who are currently working and earning a wage or salary. They are considered part of the labour force.
- Unemployed individuals: These are people who are not currently employed but are actively searching for a job. They are also considered part of the labour force.
- Willing to be employed: This refers to individuals who are not currently employed but are available and actively seeking employment opportunities. They are also included in the labour force.
- Excluded from the labour force: Some individuals may not be considered part of the labour force. This includes individuals who are not actively seeking employment, such as full-time students, retired individuals, and those who are unable to work due to disability or other reasons.
- Labour force participation rate: This is a measure that calculates the percentage of the working-age population that is part of the labour force. It is often used as an indicator of the health of the economy and can provide insights into employment trends and patterns.
In conclusion, the labour force refers to the total number of individuals who are employed or actively seeking employment. It includes both employed and unemployed individuals who are willing and able to work.

False Statement: It includes all members of the population (Option A)
Explanation:
- The labor force refers to the portion of the population that is either employed or actively seeking employment.
- The false statement is that the labor force includes all members of the population.
- The correct statement is that the labor force includes those engaged in productive activities.
- Here is a breakdown of the statements:
A: It includes all members of the population - False
- The labor force does not include all members of the population. It only includes those who are either employed or actively seeking employment.
B: It includes those engaged in productive activities - True
- The labor force includes individuals who are actively engaged in productive activities, such as working or seeking work.
C: It excludes very young and very old people - True
- The labor force typically excludes very young individuals who are not of working age and very old individuals who have retired.
D: It excludes mentally challenged people - False
- The labor force does not exclude mentally challenged people. They can be part of the labor force if they are engaged in productive activities.
In conclusion, the false statement regarding the labor force is that it includes all members of the population (Option A). The labor force only includes those engaged in productive activities, while it excludes very young individuals, very old individuals, and mentally challenged individuals.

Service Sector Activities:
The service sector includes activities that involve the provision of services rather than the production of goods. These activities are focused on providing intangible value to consumers. Some of the key activities that fall under the service sector are:
1. Transportation: This includes the movement of goods and people from one place to another, such as by air, land, or sea. It encompasses various modes of transportation, including airlines, railways, roadways, and shipping.
2. Communication: This involves the transmission and exchange of information through various means, including telecommunications, internet services, broadcasting, and postal services. It enables individuals and organizations to communicate and stay connected.
3. Banking and Financial Services: This sector encompasses activities related to banking, insurance, investment, and financial management. It includes services such as loans, credit, savings, investment advisory, and risk management.
4. Healthcare: This sector focuses on providing medical services to individuals, including hospitals, clinics, doctors, nurses, and other healthcare professionals. It includes services related to diagnosis, treatment, prevention, and rehabilitation of diseases and illnesses.
5. Tourism and Hospitality: This involves activities related to travel, accommodation, and entertainment provided to tourists and travelers. It includes services such as hotels, restaurants, tour operators, travel agencies, and recreational facilities.
6. Education: This sector encompasses activities related to the provision of formal and informal education services. It includes schools, colleges, universities, training centers, and other educational institutions.
7. Professional Services: This includes activities provided by professionals in various fields, such as legal services, accounting, consulting, architecture, engineering, and IT services.
8. Retail and Wholesale Trade: This sector involves the buying and selling of goods to consumers (retail trade) or to other businesses (wholesale trade). It includes activities such as supermarkets, malls, e-commerce, and distribution channels.
9. Entertainment and Media: This includes activities related to the production and distribution of entertainment content, such as movies, music, television shows, publishing, advertising, and broadcasting.
10. Real Estate: This sector involves activities related to the buying, selling, and renting of properties, including residential, commercial, and industrial real estate.
These are just some examples of activities that fall under the service sector. The service sector plays a crucial role in the economy by providing employment opportunities, generating revenue, and contributing to overall economic growth.

The labor force participation rate is a measure of an economy's active workforce. The formula for the number is the sum of all workers who are employed or actively seeking employment divided by the total noninstitutionalized, civilian working-age population.