Economics Chapter 12 Transport Communication and Human Resources Class 12 notes pdf download now. 2nd Year economics | and FA FSC.
Q.1) Define the terms
Labor, Efficiency of labor, Mobility of labor, Labor force, Human resources, Unemployment, Overpopulation, Optimum population, Productive work, Bargaining power of labor, Productivity of labor, Human capital, Social mobility, Vertical mobility.
Labor means any physical or mental effort of human beings for some monetary reward.
2. Efficiency of labor:
The working capacity of the labor is called his efficiency being given the same time limit and given the same type of work.
3. Mobility of labor:
Mobility of labor refers to the ease with which laborers are able to move around within an economy and between different economies. It is an important factor in the study of economics because it looks at how labor, one of the major factors of production, affects growth and production.
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4. Labor force:
All the members of a particular organization or country who are able to work, viewed collectively are called the labor force.
5. Human resource:
Human resources are the set of individuals who make up the workforce of an organization, business sector, or economy. “Human capital” is sometimes used synonymously with human resources.
Unemployment is a situation where able bodies seek jobs and are unable to find one at a desired wage rate.
Overpopulation is an undesirable condition where the number of existing human populations exceeds the carrying capacity of Earth. Overpopulation is caused by a number of factors. Reduced mortality rate, better medical facilities, depletion of precious resources are few of the causes which results in overpopulation.
8. Optimum population:
Optimum population refers to the size of a population that produces the best results according to chosen end targets.
9. Productive work:
The word productive often describes a person’s capability to do a lot of work, but it can refer to anything that produces a lot. The land in your area might be the most productive in the state, meaning crops grow very well there.
10. Bargaining power of labor:
Bargaining power is the relative ability of parties in a situation to exert influence over each other. If both parties are on an equal footing in a debate, then they will have equal bargaining power, such as in a perfectly competitive market, or between evenly matched monopolies.
11. Productivity of labor:
A measurement of economic growth of a country. Labor productivity measures the amount of goods and services produced by one hour of labor. More specifically, labor productivity measures the amount of real GDP produced by an hour of labor.
12. Human capital:
Human capital is the stock of knowledge, habits, social and personality attributes, including creativity, embodied in the ability to perform labor so as to produce economic value.
13. Social mobility:
Social mobility is the movement of individuals, families, households, or other categories of people within or between social strata in a society. It is a change in social status relative to others’ social location within a given society.
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14. Vertical mobility:
Vertical mobility refers to a person or group’s movement up or down a status hierarchy. This is commonly referred to as social mobility, yet vertical mobility can also refer to any movement up or down a hierarchy of any kind, not necessarily related to social status in the same way that social mobility is.
Q.2) Define efficiency of labor. What are the causes of low productivity of Pakistani labor?
Efficiency of labor
Efficiency of labor refers to the productive capacity of labor If a laborer can do more or better work than others, we say that his efficiency or productivity is higher. Volume of production depends not only on the number of workers but also on the productivity of workers.
Factors influencing efficiency
A. Personal Qualities of the Worker
- Racial and hereditary qualities and aptitude for work.
- Health- both mental and physical.
- Personal qualities like honesty, sense of responsible, disciplined habits.
- Motivation towards work and personal promotion.
- Education and technical training. An educated laborer is more efficient.
- Experience “practice makes a man perfect”.
- Standard of Living and availability of facilities affects efficiency.
B. Working conditions and Wage level
1. Working environment, comfortable environment increases efficiency.
2. Division of labor (i.e., Specialization) makes labor more productive.
3. Machines and Quality of equipment: A worker using better equipment and advanced machinery will produce a greater output.
4. Climate Temperate climate improves efficiency.
5. Wage level and terms of employment High wages promote efficiency.
C. Social and Political Conditions.
1. Social Conditions A society observing good human values and close social relations achieves higher efficiency in work.
2. Political stability and peace make people feel secure who work hole-heartedly.
D. Employer – Employee Relations
Friendly and good personal relations between employer and workers have, positive effect on the efficiency of labor.
Causes of low productivity of labor
Labor productivity in Pakistan is low. High standard of living of developed countries is due to their higher labor productivity. A Japanese or American Worker is many times more productive and efficient. In one word, our poverty is the result” of low efficiency of labor. Many factors are responsible for low productivity:
- · Lack of education and training
- · Less use of capital, machines, advanced technologies.
- · Rigid and conservative thinking of employers and workers
- · Less mobility’ of labor.
- · Low level of wages.
- · Unfavorable work environment. Lack of facilities at the workplace.
- · Poor economic and social institutions. Inefficient political and social leadership.
- · Short-sightedness and unsympathetic attitude of the employer.
Read more: Economics Chapter 9 Introduction to Pakistan Economy Class 12
Q.3) What are the cause of low mobility of Pakistani labor
Causes of low mobility of labor
- 1. Strong family bonds and social ties.
- 2. Difference in climate.
- 3. Language barrier.
- 4. Inadequate transport facilities.
- 5. Government restrictions on moving to some region.
- 6. Illiteracy and ignorance.
- 7. Difficulty in learning new skills. Incompetence to face new challenges.
- 8. Lack of capital.
- 9. War and political disturbances; people avoid trouble spots. Insecurity of life and property reduces mobility.
- 10. Caste system, rigid social grouping and tribal thinking discourage a stranger to mix up and work with them.
- 11. Static attitude towards life.
- 12. Poor health is always an obstacle to workers’ mobility.
Q.4) Define labor force. Write a note on problems of labor force in Pakistan
Total size of the working population of a country is called its labor force. It is estimated by excluding children, old people and other dependents from the total population. A country’s prosperity or the level of national income depend upon the strength, efficiency, and employment rate of the labor force. A look at the economic position of various countries on the globe reveals that the poverty of a nation or under-development of a country, in most cases, is not because of lack of natural resources but because of poor quality of its human resources. Nature has gifted every region with various kinds of resources.
Some, like Pakistan and the USA have abundant agricultural land; some have huge mineral deposits like Saudi Arabia while some have excellent locations like Egypt and Singapore. But for utilization of the natural resources, the role of the labor force is of prime importance. From an economic point of view the labor force of a country is studied on three criteria.
- I. Labor force – population ratio
- ii. Rate of employment of labor force,
- iii. Efficiency with respect to age, skills and residence etc.
1. The labor force and working age, Population ratio is called participation rate. This rate indicates how’ many people are dependent upon others incomes. Pakistan’s participation rate is 33%. This is quite low as compared to other countries. Only 1/3 of our population works. In most of the developed countries, the participation is above 50%. It means we have too many dependents.
These include children, very old persons, non-working women and voluntary idle people like feudal lords, beggars, peers, insane people etc. With the spread of education, training, change in the work attitude of women and desire for a higher standard of living for the family, the proportion of the labor force in the total population rises.
2. Pakistan’s total labor force, estimated for workers dependency ratio. For 2014, is 60 million.
Unemployed and underemployed labor force means wastage of human resources. Moreover, Unemployment also creates social and political unrest. In Pakistan, the open unemployment rate is around 8% (and if concealed (disguised) unemployment and underemployment is included it is not less than 12%).
3. Labor force: Is a heterogeneous group of people. Some workers are unskilled and illiterate, while others are educated and skilled. We need to give more attention to skill formation through literacy and vocational training. When more people get technical education, national output will go up.
Another factor needs attention. There are a large number of women who have nothing to do. Our social and economic system is such that job opportunities for such women are limited. Through female education, change in social values. Motivation and various other schemes, we can bring more women in the working group.
Problems faced by Pakistani labor force
- 1. Poverty limits opportunities for workers to improve their lot. Many workers cannot get even basic necessities of life, (root cause of many other problems faced by workers).
- 2. Unemployment and underemployment (and disguised unemployment).
- 3. Low productivity per worker and low efficiency in producing quality products.
- 4. Poorly educated, inadequately trained in new technologies and less-skilled workers.
- 5. Less machinery and other modern equipment available to work with and earn more.
- 6. Low wages and weak bargaining position against employers to get good wages.
- 7. Unsatisfactory conditions at the workplace with respect to light, water, air and sanitation.
- 8. Lack of mobility to avail of better opportunities elsewhere.
- 9. Unorganized labor (no trade unions). Employers exploit and treat workers improperly.
- 10. Low social status. Lack of dignity of labor and social respect.
- 11. Social insecurity (no protection against unemployment, disease, etc.)
- 12. Large number of family dependents.
Q.5) What is unemployment? What are the causes of unemployment in Pakistan? How can this evil be eliminated?
Unemployment in Pakistan
Two most important economic problems of the modern world are unemployment and inflation. This is also true of Pakistan.
One of the major and permanent economic problems faced by Pakistan is widespread unemployment and underemployment.
“Unemployment is the situation where an able-bodied person seeks a job but is unable to find one at current wage rate”.
Underemployment is the situation when either
I. A laborer has job not matching with his education and training level
ii. He has only a part-time job although he wants full-time work.
Existence of unemployment and underemployment indicates imbalance between demand and supply of labor. Unemployment causes wastage of a country’s human resources. It is not only lack of income for the individual and country but also is the root cause of many social and political problems: The unemployed, besides losing income, will suffer from boredom, depression, family tensions, divorces, violence and tendency towards crime. The present situation in Pakistan is that out of 177 million population, our labor force is 58 million. Out of this, 3 million are totally unemployed while about 6 million are partially employed. The rate of open unemployment does not appear to be too high but a large part of unemployment is concealed (which is called disguised unemployment). In Pakistan, all unemployed persons are not recorded.
The unemployment problem in Pakistan has many aspects and different categories of unemployment
- I. Unemployment of unskilled or semi-skilled.
- ii. Rural unemployment.
- iii. Unemployment of educated young.
- iv. Unemployment of women.
- v. Industrial unemployment.
- vi. Temporary or seasonal unemployment.
- 1. Rapid Population Growth: Pakistan’s population growth rate is among the highest in the world. About a million new people are enter job market each year
- 2. Poverty and unemployment are twins: A poor person has fewer chances of finding employment or creating self-employment. And on the other hand, poverty is the destiny of the unemployed.
- 3. Scarcity of Capital: Capital is needed to put people to work. Capital is created through investment. However, due to our limited saving capacity, the rate of investment remains low.
- 4. Mechanization of Agriculture and Automation in manufacturing: Due to increased use of machinery in agriculture, the rural population is getting unemployed.
- 5. Slow Industrial Development: Due to various economic, social and political reasons the progress of large and small-scale industry is slow.
- 6. Imbalance in Education: Most of the students opt for general education, to get some white-collar job in an office. Employment opportunities for such people are limited.
- 7. Capital Intensive Industries: Most of the large and medium-size industries are capital intensive i.e., they need huge funds, but fewer human hands.
- 8. A Biased Attitude for Public Sector Employment Government job has more prestige than a similar job in the private sector. People prefer to become an office clerk than to work as a private electrician. The government cannot employ every job seeker.
- 9. Seasonal unemployment: Occurs in agriculture and some other industries like fan and air-cooler industry.
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1. Population Control: This is the single most important method to reduce unemployment. When the growth of population will slow down, the number of job seekers will be lower to match the availability.
2. Increase in Capital Formation: In order to increase capital accumulation, savings should be encouraged, foreign capital also helps to undertake new projects.
3. Rapid Industrial Growth: The cure for unemployment lies on slow population growth on the one hand, and on expansion of industry’ and on the other. Only industry can absorb surplus labor.
4. Small Scale Industries: are more labor intensive, so in industrial policy, development of such industries should be encouraged.
5. Technical Training and Skill Formation: In the future development of our economy, only skilled persons have scope for employment.
6. Encouragement of Self-employment: self-employment be encouraged in the form of small business, workshops, clinics etc.
7.Diversification of Agriculture: Instead of concentrating on formal crops, activities allied to agriculture should be expanded e.g., fruit growing, dairy, poultry, fish and bee farming, processing and packaging of foods.
8. Change in Social Attitudes: Through education, people’s attitude towards work and jobs needs to be changed. Manual labor should be given due respect so that young people willingly adopt it.
9. Government Policy: The government can adopt policies that expand employment opportunities. Programs like Khushal Pakistan. People’s Works Programs and People’s Rozgar Program which concentrate on small projects are very helpful. SMEDA (Small and medium enterprises development authority) has been established to promote small business and increase employment opportunities.
10. To encourage self-employment in youth: National Self Employment Scheme and Youth Investment Promotion Society were established. Various institutions for training and providing apprenticeship have been set up. Migration of labor to other countries is encouraged by providing them facilities. A National Manpower Commission is working to recommend the maximum use of labor force.
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Q.6) Is Pakistan overpopulated? If so, what measures do you suggest to solve this problem?
Problem of over population in Pakistan
Human resources (population and its work abilities) are the most important productive asset of a country. From an economic point of view the role of population has dual nature i.e., on one side it is a resource like capital and land used in production of goods and on the other, all production is meant to be used by people. Humans produce and humans consume. Increase in land and capital resources is always desirable, but we cannot make similar simple conclusions about population. More population may be desirable because it provides more workers. But it may be undesirable because a large quantity of goods will be needed to feed, clothe and maintain a larger population.
The root cause of many economic and social problems is overpopulation. Pakistan’s total population has exceeded 177 million. Working population is only 33%. The remaining 67% do not work and are dependent upon others’ incomes. This non-working population consists of children, old people, non-working women and social parasites like jaghirdars, so-called peers, touts etc. Children below the age of 15, form 40% of our population. The most important aspect of our population is its very high growth rate. Since independence our population has increased four times.
The present economic and social conditions indicate that Pakistan is overpopulated. Following points support this view.
We can adopt two courses of action to achieve the objective.
A. Control population through planning.
B. Raise labor productivity in agricultural and industrial sectors.
The ultimate solution for overpopulation would be to reduce birth rate. Our death rate has already fallen, so unless the birth rate comes down sharply, we are bound to be caught in a population explosion.’ A systematic program of population planning is the solution. The following steps are needed.
- · Increase literacy rate; since educated couples like fewer children.
- · Spread female education to remove superstitions about family planning.
- · Increase employment opportunities for the poor to increase their living standard.
- · Provider of social security and old-age benefits. Many people expand their family since they expect that children will help them in old age.
- · Encourage late marriages so that there are fewer children per marriage.
- · Popularize safe contraceptives which modern technology has provided.
- · Publicize the idea of small families and highlight the miseries of large families.
- · Remove the religious and medical misunderstandings of people about birth control.
- · Improve the status of women so that they are not considered simply as childbearing machines.
- · Discouraging child marriage.
- · Provide education, advice and facilities about family planning methods in clinics.
- · Offer incentives for small families through tax concessions.
Q.7) There are two communities. In the first community, people prefer to be self-sufficient depending less on others. Everybody wants to complete the whole work himself. In the second community, there is much division of labor and specialization. People are too dependent on each other’s work. Which of the communities will be wealthier?
the 2nd community will be wealthier.
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