Industrial production and agricultural production, Macroeconomics

 

Industrial Production and Agricultural Production 

Industrial production and agricultural production are aggregate measures of sectoral outputs. It is a common practice to divide the totality of all economic activities into three broad groups viz. 'Agriculture and related activities', 'Industry' and 'Services'. Industrial production and agricultural production are summary measures of output of activities classified under 'Industry' and 'Agriculture' respectively.

Changes in industrial production are reported in the form of changes in an index number called Index of Industrial Production (IIP). The details of construction of such an index will be examined later. Essentially changes in values of outputs of different industries are weighted according to a specified weighing scheme to arrive at the value of the index number with reference to a 'base year'. Thus the statement 'industrial production increased by 8% this year' simply means that the index number increased by 8% over its value last year. It does not convey information regarding output of any particular industry.

Agricultural production presents relatively fewer problems of this nature but suffers from another set of problems. First the variety of agricultural products is far smaller. Second almost all of them have the same physical unit of measurement viz. metric tons. After dividing all agricultural products into a few broad groups such as 'food grains or cereals', 'pulses', 'oil seeds', etc. one can simply report the quantities in metric tons. It is also possible to construct an index.

Posted Date: 9/11/2012 5:56:06 AM | Location : United States







Related Discussions:- Industrial production and agricultural production, Assignment Help, Ask Question on Industrial production and agricultural production, Get Answer, Expert's Help, Industrial production and agricultural production Discussions

Write discussion on Industrial production and agricultural production
Your posts are moderated
Related Questions
A sample of 2,000 licensed drivers revealed the following number of speeding violations. 0 violations for 1,910 drivers. 1 Violations for 46 drivers. 2 violations for 18 drivers. 3

MEC and MEI curvs and their role in economics

There is a joke among economists that children are an "inferior good." In many countries there appears to be a negative relationship between income and the number children in a hou

What are long run and short run? Long run: It is the time period wherein all inputs cannot be fixed. Short run: It is the time period within which at least one in

Burwood Mining is raising capital of $500,000 for its next project from the following sources: Sources Amount $ Common stock 100,000

INTRODUCTION TO DEMAND ANALYSIS: It is generally seen that market demand curve is downward sloping. Market demand curve (or sometimes called Aggregate demand curve) is nothing

Assume a 5 year equal payment amortization schedule with an annual interest rate of 12% and annual payments. If the beginning is 8,000 then the first interest payment will be how l

Define the Natural rate of unemployment Natural rate of unemployment is defined as the sum of rates of structural, frictional, and classical unemployment (excluding cyclical un

The supply equation for widgets is P = 100 + 10QS. The elasticity of supply between quantity supplied of 9 and 11?

Ordinal Theory: A Short Note In ordinal approach, utility is measured ordinally i.e., qualitatively (not numerically or quantitatively). Alternatively, consumer can rank her