Economics Chapter 10 National Income of Pakistan Class 12
Q.1) Review your understanding of the following terms, the vicious circle of poverty, capital accumulation, social evils, saving.
1. Vicious circle of poverty
In economics, the vicious circle of poverty is the “set of factors or events by which poverty, once started, is likely to continue unless there is outside intervention.”
2. Capital accumulation
This refers to profits that a company uses to increase its capital base. Capital accumulation involves acquiring more assets that can be used to create more wealth or that will appreciate.
3. Social evil
“Social evils are issues which in one way or another affects members of a society and is often considered controversial or problematic in terms of moral values. Some of the most common social evils would be alcoholism, racism, (child) abuse, organized crime and inequality.”
The portion of disposable income not spent on consumption of consumer goods but accumulated or invested directly in capital equipment or in paying off a home mortgage, or indirectly through the purchase of securities.
Read more: Economics Chapter 9 Introduction to Pakistan Economy Class 12
Q.2) What is per capita income? Discuss the causes of low per capita income in Pakistan.
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