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Determination of Income and Employment
Question
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Explain (i) voluntary, and (ii) involuntary unemployment.

Answer

(i) Voluntary unemployment refers to unemployment of those persons who are not willing to do work although suitable work is available for them, i.e., they are voluntarily unemployed.(ii) Involuntary unemployment refers to a situation in which all able persons who are willing to work at prevailing wage rate cannot get work.

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Some More Questions From Determination of Income and Employment Chapter

State relationship between income and consumption.

What is Breakeven point?

What are the types of Propensity to consume?

How does MPC affect level of income?

Distinguish between APC and MPC, The value of which of APC and MPC can be greater than one and when?

State relationship between income and saving.

What is saving function (or Propensity to save)?