Question

1. Explain the productivity awareness and
Ques2. The basis different of purpose behind the consume price index number and the wholesale price index number

Answer 1

Answer-1:

Productivity Awareness:-

$\small \sf \longmapsto\: productivity \: = \dfrac{total \: out put}{units \: of \: the \: factor \: used}$

$\small \sf\longmapsto \: labour \: production = \dfrac{total \: out put}{total \: number \: of \: workers \: employed}$

$\sf \small \longmapsto\: land \: prodcivity = \dfrac{total \: out put}{units \: of \: land \: used}$

• Productivity and cost are reciprocal of each other, Higher productivity implies lower cost.

• Higher Productivity ➸ Lower cost ➸ Higher profits.

• Productivity awareness implies awareness among the producers of objective of maximising profits.

• In the industrial sector in India, productivity awareness is fairly large, but in the agricultural sector, it is comparatively low.

Answer-2:

In case of consumer price index number, the basic purpose is to aware about the cost of living of a specified group of consumer in the society.

In case of wholesale index number, the basic purpose is to know the situations of overall demand and supply in the economy.

Rising price indicate a situation of excess demand, while falling prices suggest a situation of deficient demand.

While, wholesale price index focuses on the date of inflation in the economy.