Key notes on Economic Problems and problem of unemployment in India.
(a) Economic Problem
Unlimited wants and scarce resources lead to the origin of the basic economic problem in all types of economies. If the resources to satisfy the unlimited wants were many the economic problems would not have arisen. Besides scarce resources are capable of being alternatively used.
The scarce resources can be either utilized for the production of consumer goods or for the production of capital goods. The man has to choose the best allocation, of resources for the production of commodities,
(b) Problem of unemployment:
Every economy encounters the problems of unemployment. Unemployment can be eradicated by the ideal and fuller utilisation of scarce resources. The unemployment problem can be tackled by the application of right technique of production. The techniques of production imply the combination “resources utilised in the production of a commodity.
The surplus human power can be better absorbed by adopting the method of labour-intensive technology. The productive resources should be utilised for the production of capital goods. The future production depends upon the investment expenditure.
Thus Government arrests the problem through policies like increase in the rate of capital formation, securing capital to meet the deficiencies of capital and by introducing vocational training centre.