Poverty Meaning Absolute and relative poverty Causes of poverty Unemployment Meaning Types Causes Remedies Inflation Meaning Types Cause Remedies I just leave the first page for your editing

2. Basic Econimcs’ Problems
 Poverty
I. Meaning
II. Absolute and relative poverty
III. Causes of poverty
IV. Measures to reduce poverty
 Unemployment
I. Meaning
II. Types
III. Causes
IV. Remedies
 Inflation
I. Meaning
II. Types
III. Cause
IV. Remedies

3. Basics of Economics
• Economics has to deal with satisfying the needs of the people through available
limited resources.
• Problems related to economy is referred as “Economical Problems”.
• Economic problems are an integration of four parts :
 Problem of allocating resources
 Problem of all economic efficiency
 Problem of full-utilization of resources
 Problem of economic growth

4. Poverty
 Introduction:
Food’ Clothes and shelter are three basic need of any person
even today many people are not getting these three things such kind of
condition is termed as “Poverty”.
 Meaning:
As per UN, “ Poverty is fundamentally a denial of choices and
opportunities, and violation of human dignity”. (UN-1998)
 Poverty is Socio-economic issue which effects:
 Education
 Culture
 Religion
 Employment
 Population
 Corruption
 Health
 Poverty line:To measure poverty a central indicator is income and
consumption is defined which is known as poverty line. It is the critical
value below which an individual or household is determined to be poor.

5. Absolute and relative poverty
 Absolute poverty: When people do not have enough
money to meet the basic threshold that is needed for
survival is termed as absolute poverty.
People below poverty line are facing
absolute poverty and do not have enough money to buy
food, shelter, clothing, etc. that is needed for survival.
 Relative Poverty: It is the poverty when the people are
compared to others around them but may still have
enough money to survive. It is based on cultural
environment around them, not on basic amount necessary
for all humans to survive.
 Absolute poverty stays the same and this could be
problematic for all economy whereas relative poverty
changes more often and adjusts to the change in the
society and furthermore when you compare the cross
nationality.

6. Causes of poverty
1. Unemployment
2. Corruption
3. High population growth
4. Inflation
5. Land inequality and social justice
6. Landowners and powerful pressure groups
7. Less priority to agriculture sector by government
8. Neglecting the poor ones
9. Lack of decent housing
10. Market liberalization and globalization
11. Health among the main cause of poverty in India

7. Measures to reduce poverty
1. Employment opportunities
2. Uplift of agriculture
3. Education
4. Establishment of small scale industries
5. Reduce inflation
6. Check population growth
7. Proper utilization of resources

8. Unemployment
 Meaning: When a person is actively searching for employment,
but unable to find a job, is called unemployment.
 Unemployment is often used as a measure of health of the
economy.
 Unemployment rate: It is the number of unemployed person
divided by number of person in the labor force.
 Notion of unemployment is one of those who do not have a job
or are not paid any salary.
 Unemployment is a very serious problem to society which
increases poverty in the country.

9. Types of Unemployment
 Unemployment in Developed countries:
I. Cyclical
II. Frictional
 Unemployment in Developing countries:
I. Structural
II. Disguised
III. Under unemployment
IV. Open
V. Seasonal

10. Causes of Unemployment
1. Illiteracy
4. Social and cultural factors
3. Population growth
2. Technology

11. Remedies of unemployment
1. Reform in education system
2. Population growth
3. Self-employment schemes
4. Policy towards seasonal unemployment
5. Rapid Industrialization

12. Inflation
Meaning: Inflation is sustained increase in the general price
level of goods and services in an economy over a period of
time.
When the price level rises each unit of currency buys fewer
goods.
Inflation occurs to an imbalances between demand and
supply of money, changes in production and distribution
cost or increase in taxes on products.
It has its worst impact on consumers. This leaves them with
no choice but to ask for higher incomes.
Price inflation is measured by the inflation rate, which is
calculated year on year basis.

13. Types of Inflation
I. Demand pull inflation (Excess demand inflation)
II. Cost push inflation
III. Pricing power inflation (Administrated price inflation)
IV. Sectorial inflation

14. Causes of Inflation
1. Unfavorable agricultural production
2. Hoarding
3. Deficit financing
4. Population and black money
5. Upward revision of administered price
6. Increase in wage rates
7. Increase in indirect taxes

15. Remedies of inflation
 Monetary measures: It includes,
I. Higher bank rate
II. Sale of government securities in the
open market
III. Increase in reserve requirements
IV. Selective credit control measures
 Fiscal measures: Fiscal measures relates to public
revenue and public expenditure and matters
related thereto. To control the inflation measures
taken are namely,
I. A reduction in government spending
II. Increase in tax rate
III. Increase in public borrowings
 Other measures

16. Thank you
The End