eChapters

Economic System

The three economic problems What, How and to whom to produce are common to all societies or economics. But different countries follow different approaches to solve basic economic problems. These approaches are called economic systems. There are 3 important economic systems.

1. Command economies
2. Market economies and
3. Mixed economies

1. Command economies (Socialist economies): In a system like this, the government controls all aspects of production and distribution. Such a government might be dictatorial or it might be democratic. Main features of socialism are public ownership of means of production, Economic planning, Economic equality, lack of competition, elimination

Tax

A tax is a mandatory fee or fnancial charge levied by any government on an individual or an organization to collect revenue for public works providing the best facilities and infrastructure. The collected fund is then used to fund different public expenditure programs.

Direct and Indirect taxes

Types of tax system

1. Proportional tax: No matter the tax base’s relation to income size, the tax rate is always the same proportion. Taxing is according to the proportion of income. In this system poor people will be hit hard.
2. Progressive tax: Distribution of tax in a more just manner. People with higher income are charged with higher rates of tax. Eg. Income tax.
3. Regressive tax: Burden of payment will be more on poor. Taxes are charged from the poor at a higher rate than from rich. Ex. Commodity taxes – Affects poor rather than rich.

Public Finance

Public finance is a branch of economics which deals with the income and expenditure of public authorities such as Central Government, State Government, Corporations, Municipalities etc. Public finance, according to Adam Smith, is the study of the nature and guiding principles of government spending and revenue.

Micro Finance vs. Macro Finance

Microfinance and macro finance represent two types of funding-related activities. The difference lies in their scope. Microfinance is an individual-focused, community-based approach to provide money and/or fnancial services to money to poor individuals or small businesses who lack access to mainstream or conventional resources. 

Banks and Banking

On account of multifarious activities of modern banks, the Bank and Banking has been defned by several economists as follows:

The defnition of a banker given by Dr. L. Herber and L. Hart is “one who, in the ordinary course of business, honours cheques made upon him by persons from and for whom he receives money on current accounts.”

Chamber’s Twentieth century Dictionary defnes a bank as an, “institution for the keeping, lending and exchanging etc. of money”.

The purpose of a banker, in Crowther’s words, is to produce money by accepting other people’s loans in exchange for his own.

A bank, according to Professor Kent, is “an entity whose main activities entail the collection of the momentarily idle money of the general public for the purpose of advancing to others for consumption.”

Money

Money has made rapid economic progress possible in this modern age. In the early stages, exchange took the form of barter The direct exchange of one good for another is known as barter. For instance, the potter received paddy from the farmer in exchange for cooking pots. Barter became more challenging as there were more items to trade. Silver and other precious metals were thus utilised as currency. Then the paper currencies were used as legal money, i.e., an instrument of exchange, by the governments.

Definition of Money

Anything that the general public readily accepts as payment for products, services, other assets, and the discharge of debt is referred to as money. Robertson defned money, “as anything that is acceptable in discharge of obligations”.

According to Crowther, “Money is anything that is generally acceptable as a means

Theories of Population

The theory of population is studied because the supply of labour depends upon population and its growth. Observing the abnormal growth of population and consequent fall in the standard of living, Thomas Malthus (1760-1834) an English Clergyman frst studied population growth in various countries of Europe. Later he wrote a book entitled “An Essay on the Principles of Population” in 1798. His his theory is popularly known as Malthusian theory of population. To quote the theory in his own words “By nature human food increases in a slow arithmetic ratio, man himself increases in a quick geometric ratio unless want and vice stop him”

Macroeconomics approaches the economic problems in terms of aggregates like national income, general employment level, aggregate demand, aggregate production and so on. The important among the above is national income. The one common thing to all products is value. Therefore, the national income must be expressed in monetary terms. The entire value of the goods and services (output) produced by an economy over time is measured by national income (normally a year). It also serves as a measure of the money generated by production and/or the total amount of expenditures made in order to produce the output.

Significance

The Central Statistical Organization of India has been calculating the country’s gross domestic product. We can measure your academic performance in relation to other students by the percentage of the marks scored by you. Similarly a country’s economic performance has been measured by indicators of national income such as GDP or GNP. Additionally, it is crucial to measure national income for a number of reasons, such as making predictions about how the economy will develop in the future,

The economics of distribution “accounts for the sharing of the wealth produced by a community among the agents of the owners of the agents which have been active in its production”.

- Chapman

The division of the national dividend or aggregate national income among the different agents of production viz., rent for land, wage for labour, interest for capital and proft for entrepreneur is termed as distribution in economics.

Factor Market

A factor market is a market where factors of production are bought and sold. Factor markets allocate factors of production, including land, labour and capital, and distribute income to the owners of productive resources, such as wages, rents, etc.

In the factor market it is not acres of land which is being bought or sold but the services of land. Similarly neither the labour nor capital goods are being bought and sold but the services of labour and capital. Thus rent is not the price of land but

When it comes to the fow of goods and services from the point of production till they reach the hands of fnal consumers, marketing is defned as “the performance of all business operations involved in that fow.”

Market structure is defned as “those aspects of the market’s organisation that appear to strategically infuence the nature of competition and pricing inside the market.”The market structure is decided by the following factors in general.

1. Number and size of the frms.
2. Degree of product differentiation.
3. Conditions for entry and exit.
4. Flow of market information.
5. Degree of integration.

Supply

Supply refers to the good being sold at a specific price and moment.

Supply is the quantity of a commodity that is actually made available for purchase at a specific price and moment. The various quantities of a commodity that would be available for sale at varying prices are referred to as the supply schedule.

Supply schedule of Rice The supply schedule for the whole market is called market supply. It is arrived at by adding the quantities supplied by all the sellers at varying prices. The increasing portion of the marginal cost curve is used to create

Theory of Costs

In both short-run and long-run analyses, there exist different cost curves.

Short run is the duration of a given factor or factors. Equipment and business owners are typically fxed in the near term

Long run is the period over which all factors become variable.

Fixed costs: are those expenses that remain constant regardless of output or production levels.. Eg: depreciation, annual maintenance cost etc.

Variable cost: are those expenses that change depending on the volume of output eg : inputs/raw material costs, wages etc.

Short Run Cost Curves

There are seven cost concepts or curves in short run analysis. They are :

1. Total cost (TC)
2. Total Fixed cost (TFC)

According to the theory of production, the entrepreneur seeks to maximise his earnings. The goal of a proft-maximizing businessperson is to maximise production for a given amount of investment, or, to put it another way, to reduce expense.

Meaning of Production

Producing items and services with a market value is referred to as production in economics. It refers to the development of utilities. These services fall under the categories of form, time, and place utilities. The establishment of such utilities boosts the economy’s total production and redistribution of commodities and services. A commodity’s utility could rise for a variety of reasons.

Form Utility

If the physical form of a commodity is changed, its utility may increase. For instance, the utility of cotton increases, if it is converted into clothes. The other examples are processing of paddy into rice, wheat into four and butter into ghee.

Marshall was the frst to establish the idea of elasticity. According to the law of demand, if the price increases, fewer units will be sought for. But it’s crucial to know how much less will be expected of it. Such inquiries are crucial when formulating public policy. For instance: A price rise for salt might not have much of an effect on demand, but a price increase for TV will have more of an effect. Why? The idea of elasticity provides an answer to such queries. In economics, the concept of “elasticity” is frequently used to describe how responsive one variable is to changes in another.:

Elasticity of demand

Demand elasticity generally refers to demand’s sensitivity to price. However, there are as many levels of elasticity as there are demand determinants. The most important Elasticities are:

Determinants of demand Elasticity

Demand: Wants that are supported by a price at which they can be purchased are called demand. It is a relationship that, ceteris paribus, depicts the various quantities of a good that buyers would be able and willing to buy at various prices at a particular point in time.

Demand Schedule: It is a table that displays different quantities of a good that consumers would be willing and able to buy at different prices at a specific moment, ceterius paribus.

Demand curve: A demand schedule is a graph that displays the various quantities of a good that buyers would be able and willing to buy at various prices at a specific point in time, according to Ceterius peribus. It in turn fuels growth by increasing demand for industrial goods..

The arc slopes left to right in a descending direction.

Agriculture economics is the study of how resources are used, distributed, and utilised in order to create agricultural products. A consistent level of farm surplus is one of the sources of technological and commercial expansion, so agricultural economics has an impact on the economics of development.

In general, it may be said that average salaries are low when a sizable portion of a nation’s population depends on agriculture for a living. It is more accurate to argue that a country’s majority of people must rely on agriculture because it is impoverished rather than that a country is poor because the majority of its population works in agriculture.

Features of Agriculture

Agriculture is the principal industry of employment. Nearly 61 percent of the whole population is employed there. It makes up 25% of the country’s income.

Monsoon dependence: The monsoon is crucial to Indian agriculture. The production will increase if the monsoon is good, and the crops will fail if it is below normal. Floods can occasionally ruin our crops. Agriculture depends on the rainfall since irrigation systems are so poor.

Goods can be classified as follows

1. Free goods: Goods which are not scarce and available at free of cost are called free goods. Eg: air.
2. Economic goods: Economic goods are scarce and one has to pay a price for it : eg: Rice, pen, cloth etc.
3. Visible and Invisible goods: Things which can be seen and felt can be called as visible goods. Such goods are also called as tangible good. Eg. Rice, bicycle.

   Invisible goods are also called as services or intangible goods. We cannot see or feel those goods. Eg. Copyright of a book, service of a doctor.

4. Consumer goods and capital goods (Producer goods): Consumer goods satisfy our wants directly. Eg. Rice, Pen, etc.

   Goods like machinery, equipments will not satisfy our want directly but used for further production

Economics and Reasonability

The four primary economic activities of production, distribution, consumption, and resource management are what we referred to as economic actors or economic agents in Chapter 1. Individuals, small groupings (such as a family or a group of roommates), as well as big businesses like the government or international corporations, can all engage as economic agents. Economics is the study of these actors’ actions and interactions during economic transactions. This chapter examines how people behave as independent economic players. We analyse this subject’s ramifications for economic theory and examine both historical and recent research on it.

Perspectives from History on Economic Behavior

A social science, economics is concerned with people and how we arrange ourselves to meet our wants and improve our well-being. All economic behaviour is ultimately just human behaviour. Even though institutional factors can sometimes appear to gain control (as evidenced by some bureaucracies’ propensity to grow over time), if you look closely at economic outcomes

Agricultural Economics is an applied discipline that examines the economics of agricultural commodity production, marketing, exchange, and consumption in the economy. It largely focuses on how a society decides to use its limited resources, which have alternative uses, to produce things for both current and future consumption. Due to this shortage, people are forced to choose between options, and economic knowledge is utilised to compare the options and select the best one. For example, a farmer can grow paddy, sugarcane, banana, cotton etc. in his garden land. But he has to choose a combination of crops depending upon the availability of labour and irrigation water.

The emergence of economic problems is caused by two key reasons.. They are: (i) the existence of unlimited human wants and (ii) the scarcity of available resources. The existence of human wants is the starting point of all economic activity in the world. Unless we make efforts, we cannot satisfy wants. Hence, wants, efforts and satisfaction form the circle of economics. Thus, the science of economics focuses around want - effort - satisfaction.

1.1. Terms and definitions

1.1.1. Landscape gardening

• Branch of floriculture deals with the study of ornamental gardening or garden features.
• Bringing an area or piece of land into a garden using naturally existing features like undulations, terraces and plain surface to have more naturalistic effect than artificial.

1.1.2. Ornamental gardening

• Place for growing plants which are consciously directed for ornamental or practical use.

1.1. Origin and distribution

• Most species are native to Asia, with smaller numbers are native to Europe, North America and North Western Africa.
• China roses are the ancestor of the present day popular roses.
• Native of Himalayan regions, Asia, China, Japan, Europe and North America.

1.2. Economic importance

• King of flowers
• Symbol of beauty, fragrance and used to convey of love.

1.1. Origin and distribution

• Centres of diversity - Central and South America, India, South East Asia with secondary centres of diversity in West and East Africa.
• Leaf amaranth - native of India
• A. tricolor L. (Syn A. gangeticus L), A. mangostanus, A. polygonoides, A. dubius, A. blitum (Syn: A. lividus)
• A. tristis L., A. viridis L. - Wild leaf types
• A. spinosus L., A. cruentus L., A. caudatus L. - Cultivated grain types

1.1. Origin and distribution

• Centre of origin is Central Asia, the Near East, Ethiopia and the Mediterranean
• There are two sub-species
  • Pisum sativum sub. sp hortense, the garden pea
  • Pisum sativum sub. sp arvense, the field pea

1.1. Origin and distribution

• Centre of origin is Peru, Bolivia, and South America in the Central Andean region.
• Introduced into India in early 17^th Century
• In India, cultivation of potato began first in Nilgiris in 1822.
• Mainly grown in Uttar Pradesh, West Bengal, Punjab, Karnataka, Assam and Madhya Pradesh.
• Commercial potato species - Solanum andigenum - not very common. Plants are thin and long stem, small and narrow leaflets. Flowers more profuse, long stolons and mostly coloured deep eyed tubers.
• Solanum tuberosum: More common, plants shorter and thicker stem,

1.1. Origin and distribution

• Originated in Asia namely North West India, Afghanistan, Tajikistan, Uzbekistan and Western Tien Shan
• According to Vavilov (1951), it was originated in Pakistan.
• Jones and Mann (1963) stated that areas comprising Pakistan, Iran and mountain areas to the North India are primary centres of origin
• India is the second largest producer in the world, next to China and ranks third in export of onions, next to Netherlands and Spain.
• Maharashtra is the leading onion producing state in India, followed by Karnataka and Gujarat.
• Grown in Odisha, Andhra Pradesh, Uttar Pradesh, Tamil Nadu, Rajasthan and Bihar

1.2. Onion types in India

• Common onion (Allium cepa var. cepa) - Large bulbs born singly and propagated through seeds. Used as salad or in curries.
• Multiplier onion or potato onion (Allium cepa var. aggregatum) -Producing small bulbs, borne in clusters and generally propagated through small bulbs. Used for seasoning curries.

1.1. Origin and distribution

• Originated from wild non heading type, Cliff cabbage or Cole wort (Brassica oleracea var. sylvestris).
• Native to Mediterranean region.
• Three cultivated forms
  • Brassica oleracea var capitata f. alba- White cabbage
  • Brassica oleracea var capitata f. rubra- Red cabbage
  • Brassica oleracea var capitata f. sabauda- Savoy cabbage
• Major cabbage producing states are Uttar Pradesh, Odisha, Bihar, Assam, West Bengal, Maharashtra and Karnataka.

1.2. Economic importance

• Contains all essential amino acids, particularly sulphur containing amino acids.
• Red cabbage is rich source of anthocyanin.

1.1. Origin and distribution

• Also known as balsam pear or bitter cucumber.
• Old world origin and native of tropical Asia, particularly in Indo Burma region
• Widely grown in India, Indonesia, Malaysia, China and tropical Africa
• In India, it is cultivated in Maharashtra, Gujarat, Punjab, Tamil Nadu, Kerala, Karnataka, Andhra Pradesh, West Bengal, Odisha, Assam, Uttar Pradesh and Bihar.

1.2. Economic importance

• Bitter gourd contains bitter principle (Glucoside) momordicin.
• Important vegetable in South Indian states, particularly in Kerala and grown for immature tuberculate fruits a unique bitter taste
• Fruits are
  • Rich source of vitamins and minerals

1.1. Origin and distribution

• Originated in Peru, Ecuador, Bolvia of South America and name came from Aztec word Tomato.
• First report from Italy in 1544.
• Leading producers in India - UP, Karnataka, Maharashtra, Haryana, Punjab and Bihar.

1.2. Economic importance

• Rich source of minerals like calcium, sodium, trace elements like copper, vitamin A, vitamin C, vitamin B complex (thiamine), essential amino acids and healthy organic acids like malic, citric, formic, oxalic and acetic acids.
• Attractive red colour due to lycopene and yellow colour due to carotenes.
• Peculiar flavour due to presence of ethanol, acetaldehyde and volatile flavour in fruit.

Seed handling ensures the potential utilization of seed material. Collection and utilization of quality seeds are indispensable in producing quality planting material and better seedling establishment. After selecting the quality seed source, collecting good quality seeds physiologically and genetically is considered the first step in seed handling, followed by processing seeds, testing, storage, and pre-treatment for germination. The main goal of seed handling is to attain an excellent seed survival rate. The chances of seeds getting damaged during any stages of seed handling because of careless or rough approaches are very high.

From the regeneration point of view, the quantity of seed production per tree correspondingly has a vital role to play. If considered virtually, only one successful seed (or two if the species is dioecious) would serve to replace the parent tree(s); hence the production of seeds during the lifetime of a tree is absurd. A full-grown Eucalyptus camaldulensis tree may produce a million or more seeds per year and live further, producing seeds for over a century. Each year’s production could help afforest

The forest cover in most tropical countries has been under severe pressure and is diminishing at an alarming speed; consequently, they are experiencing severe biodiversity losses, reverting to a mature state at a slower rate with low resiliency. These tropical countries are aware of the danger causing due to the loss of forests, and large afforestation programmes have been launched by forest departments, private companies, and donor-supported projects. Nevertheless, plantation activities have rarely been able to keep pace with the deforestation rate, not to mention replacing what has been lost during the past. Plantation programme through afforestation activity is not only the matter of the forest department alone but also the combined responsibility of all the foresters. The appeal of forest planting has changed over the years following the broader demand spectrum.

To some extent, the forest plantations fail to create the diversity of plants and wildlife that has been lost. Hitherto, large-scale plantations are still necessary both directly to cater to the needs of industrial wood and help to minimize the pressure on the remaining natural forests. During the past decades, many government programmes have emphasized using 

Global warming is the hottest issue facing life in our times. The gradual average increase in air temperatures near Earth’s surface over the past one to two centuries is leading to the phenomenon called global warming. It is this global phenomenon that triggers climate change, threatening the entire life on Earth. Earth’s climate has changed over all conceivable geological timescales, but that was all on account of the natural phenomenon. But, human activities are making the phenomenon more pronounced since the beginning of the Industrial Age, now emerging as a dominant triggering factor in influencing the overall climate fabric of the planet.

Radioactive pollution is largely attributable to radioactivity, a natural property of certain elements, such as radium, uranium, thorium, etc. of spontaneously emitting protons (alpha particles), electrons (beta particles), and gamma rays (short-wave electromagnetic waves) through the disintegration of their atomic nuclei (nuclides).

An alpha particle consists of two protons and two neutrons, which is akin to a helium nucleus. Alpha particles travel at a very slow speed, whereas gamma rays propagate at the speed of light. The alpha particles have less penetration power than the beta and gamma rays. In human tissues, alpha particles can penetrate up to a depth of about 0.005 to 0.008 cm. The gamma rays, on the other hand, are the most penetrating and can easily pass through a human body without striking anything in between. The high penetration power of gamma rays is because they have no charge; therefore, they do not interact with anything as the charged alpha particles would do

A sound is a form or energy. Therefore, it has to have an impact on life in one way or the other. Most of the organisms of Kingdom Animalia communicate with each other creating a peculiar sound. Creating sound is inevitable for performing various life activities. Every animal species has the characteristic sound it reflects through its behavior. Whatever all the animals communicate through creating specific sounds is all-natural. Nature, as such is a stupendous repository of a diversity of sounds, all being specific characteristics of life.

Human behavior, however, is highly evolved in terms of creating a variety of sounds. Communication, entertainment, and many behavioral activities are expressed through creating distinctive sounds. There is a difference between natural sounds and the ones human beings create or can create. Humans often generate sounds, not just in a natural manner, but also with various technical aids, that often become unpleasant what we call noise. Creating noise, or noise pollution, seems to be an exclusive characteristic of the human species. Of course, there could be some natural sounds that might occasionally cause havoc to life. Examples are the sounds generated at the time of the volcanic eruption, during an earthquake

Life on Earth is rooted in soil. Soil is not just a substratum anchoring the plants and giving a base for all terrestrial animals. It is the largest terrestrial ecosystem, and one of the most wonderful ecosystems on Earth. It inhabits most microorganisms. Microbial populations flourishing within the soil have greater biomass than all the human beings, elephants, and whales put together. It is due to the microorganisms that the soil constitutes the most active ecosystem on Earth.

The health of the soil is crucial for the health of all the plants growing on it and for all the animals dependent on it for their inhabitation and nourishment. Soil health is also critical for the well-being of numerous microorganisms, detritivores, and several other organisms. Soil is composed of all essential nutrients/ minerals, air, water, and organisms in a proportion that strikes its ecological balance and maintains its structure and functions revealed through its productive potential.

Soil, like all other ecosystems, is itself a dynamic ecosystem. Its composition keeps changing but natural inbuilt mechanisms help strike a balance and recover 

Ours is a Living Planet because ours is a Water Planet. The health of the Living Planet depends on the health of its water resources. Ironically, the health of its water resources is at stake. And so of its life! The waters of the Earth are in the grips of pollution. Much of the water is already polluted and the rest is increasingly becoming polluted. Water pollution, indeed, is one of the worst problems life on Earth is faced with. Water pollution is halting human progress and is phenomenally affecting all walks of human civilization. Water pollution is even putting a question mark on our sustainable future. This chapter presents the causes, magnitude, and consequences of water pollution and also suggests ways and means to prevent and control water pollution and also attempts to manage water resources.

Air or atmosphere constitutes one of the integral components of the environment. Among all the environmental components, the air has the highest fluidity. Therefore, the entry of a foreign substance into the air imparts a quick and severe effect on the health of the organisms. Air in the biosphere has a mixture of various gases in a dynamic proportion which is conducive to maintaining the health and sustenance of all living organisms. An alteration in the composition of the atmosphere beyond a certain limit adversely affects organisms’ health, and might even be of more serious consequences for life.

Air pollution, thus, is defined as the occurrence of undesirable gases (e.g., carbon monoxide, sulfur dioxide, etc.) or particles (e.g., suspended particulate matter) in such concentrations that are deleterious to terrestrial life (vegetation, animals, and human beings) and some physical assets, like buildings, statues, and monuments. Air pollution especially affects the health of human beings living in highly modified (anthropogenic) ecosystems, e.g., cities and industrial areas.

We are living in a world that is in a grim state of environmental disruptions. Callous developmental activities resulting in pollution of all environmental components and gradually culminating in global warming, climate change, and species extinction are responsible for triggering the processes of environmental disruption. Pollution of air, water, and soil is rapidly assuming alarming proportions.

The very processes of socioeconomic development are now posing threat to economic progress as well as to human health. Ominous changes in global climate are posing threat to life on Earth. The irony is that the major cause of environmental disruptions is anthropogenic rather than natural. Human’s materialistic progress and environmental pollution in our contemporary world go hand in hand.

Non-Response

Non response occurs when respondents are not available or do not occur in the survey and refuse to respond by any means. This non response is mainly of two types either item non response or unit non response.

If we are conducting an online survey and mailing a questionnaire to various persons. But sometimes we get a reply for some questions and sometimes not i.e., in case of questions in which income is concerned. In some cases, the mail is ignored due to lack of time. So, if the whole questionnaire is ignored by any means, then it is known as non-response and if some of the questions are ignored due to their fussy nature such type of response is known as a unit non response. Such types of non-response problems are very common in surveys. Whenever we carry out a survey non response always exists because it is almost impossible to get every response from each individual.

The individual chosen for the sample is not ready to participate in the survey is known as non-response. This type of selection bias is unit/item non response.

In our previous chapters, we have discussed various sampling designs or techniques such as simple random sampling, stratified sampling, systematic sampling and cluster sampling recently we have discussed unequal probability sampling i.e., probability proportional to size sampling. In all these sampling designs the variable of interest (generally there is only one variable of interest) which we have considered and perform our estimation based on that single variable. There are some other variables which are related to our variable of interest and if we utilize those variables, we may gain some efficiency in our estimator i.e., if we take some correlated variables with our variable of interest or study variable by this, we can enhance our estimation. The variable which is correlated with the study variable is usually known auxiliary variable or supporting variable or supplementary variable or benchmark variable. This auxiliary variable is utilized in two stages either in the design stage or estimation stage.

Graunt (1662) was the first who used auxiliary information to estimate the population size of England. After this Laplace used auxiliary information for the estimation of the population in France.

Introduction

In some practical field situations, the results are described by some percentages or proportions. In agricultural field conditions, if any disease prevalence is to find then in the form of percentage or proportion, we can say how much disease rate is present i.e., 10 % or may be any other. So, in those situations, we need to describe our results in proportions. Similarly, in many fields such as medical sciences, social sciences and other allied sciences this type of results in proportions we need to describe.

Yet now we have discussed probability sampling techniques in which sampling units are assigned with equal probabilities. But sometimes in practice if want to draw a sample with unequal probabilities i.e., every sampling unit is assigned with varying probabilities and we draw a sample from these units with the help of equal probability methods, then the results are not as much efficient as compared to unequal probability sampling.

Simple random sampling is a procedure wherein the chance of selection of every unit in the required sample is equal. However, the use of simple random sampling is not advisable when the units differ substantially in size as the significance of unit size is ignored.

The basic idea of this type of probability technique is that chance of each unit of a population being selected in the sampling is proportional to its size. The units vary significantly in size and the variable under study is largely related to the size of the unit. Therefore, the probabilities fixed for each unit are proportional to their sizes.

Non-Probability sampling methods are also known as non-random sampling methods or deliberate sampling. These types of methods are reliant on the researcher’s ability to select members at random. These sampling methods are not fixed or pre-defined selection processes making it difficult for all elements of the population to have equal opportunities to be included in the sample.

Types of non-probability sampling techniques

1. Judgmental or Purposive sampling

This technique involves the purposive selection of units of samples based on the judgement of the researcher. The researcher selects the sample on the basis of his a priori knowledge and experience.

Multistage Sampling

Multistage sampling is a form of random sampling where samples are selected in a sequence of stages. Where each sample is drawn from the exclusive previously selected samples. This sampling is not done once but at multiple stages. It differs from cluster sampling in the sense that cluster uses all the subjects within a cluster whereas multistage selects a sample from within the selected group. Groups are randomly chosen from a population; subgroups from these groups are randomly chosen and then randomly chosen to be surveyed.

This is an extension of cluster sampling, which is carried out in multiple stages say two, three or four stages. In the first stage, the universe is divided into some clusters from which certain clusters are selected at random at the first stage samples. In the second stage, the selected first stage samples are again subdivided into some clusters from which again certain clusters are selected at random as the second stage samples. In the third stage, the selected second stage samples are again subdivided into some clusters from which certain clusters are again selected at random as the third stage samples.

Cluster Sampling (Meaning and Concept)

Cluster sampling is a special type of sampling which is used when we have to make a large survey such as a survey for the whole country and whole state etc. to know the privilege. Under this method, the total population is divided into some recognizable subdivisions known as clusters. Out of all the clusters, a given number of clusters are chosen at random. All the items covered by the selected clusters are included in the sample.

A sampling technique in which we divide the whole population into groups or subgroups in such a way that there is heterogeneity within each group and homogeneity among the groups and then a simple random sample of n groups is selected from a total of N groups of population and finally all the units of selected clusters from our sample.

Systematic Sampling (Meaning and Concept)

In this chapter, we are going to discuss the systematic random sampling technique. This is a random / probability / quantitative sampling method. In our previous chapter, we discussed the stratified random sampling technique. We have said that this technique is used when the population is heterogeneous and needs to be stratified into homogeneous groups. We have also discussed steps to be followed when using stratified random sampling as well as the strengths and limitations of stratified random sampling. Systematic sampling is a commonly employed technique if a complete and up-to-date list of the sampling units is available. The procedure involves choosing the very first object arbitrarily and the remaining members of the sample will be selected naturally according to any pre-decided sequence containing regular spacing of units. In this method, units of the population are numerically, geographically, and alphabetically arranged either in ascending or descending order (generally ascending order is preferred). When the ordering of the elements is related to the characteristic of interest,

Stratified Sampling (Meaning and Concept)

The word ‘stratify’ comes from the Latin word, meaning ‘to make layers’, thus in stratified sampling the whole population is considered to be classified into some mutually exclusive layers or subgroups or classes also called strata. The strata do not overlap and they constitute the whole population.

Why the population is considered to be divided into different strata (or layers or subgroups or classes)?

Simple Random Sampling (SRS)

Simple random sampling is probability sampling and refers to a technique of sampling where each and every unit of the population have an equal and independent opportunity of being selected and included in the sample during the sampling. In the SRS the selection of the sample depends on the chance factor and is also known as the method of probability sampling.

There are two ways in which SRS can be performed:

• SRSWR: Simple Random Sampling With Replacement
• SRSWOR: Simple Random Sampling Without Replacement

Sample Design

Sample design is a specific system for obtaining a sample from a given population. For the effective planning and sample survey, this sample design is the framework or road map that serves as the basis for the selection of the survey sample and affects many other important aspects of a survey as well. It is a definite plan for obtaining a sample from a given population. Sampling design refers to the procedure that the researcher would adopt in selecting items as the sample. Also, sampling design is a working plan that specifies the sample frame, sample size, sample selection and estimation method in detail. The blueprint for obtaining a sample from the sampling frame and this technique used in drawing a sample is known as sample design or sampling design. This whole process is done before the determination of data collection.

Basic thought of Sampling

The data is very important in every field for decision making whether it is medical sciences, engineering sciences, agricultural sciences and management sciences etc. for this we need to plan the correct data. If we don’t have correct data then based on that we cannot plan good decisions and it will provide misleading results. So, to achieve or plan the right data it is necessary to have the right technique which is to be used while collecting data and an appropriate method of data collection is preferred. From this, the two important questions arise (i) what are those methods required to obtain paramount data or sample and (ii) how best to use the data or sample to estimate the characteristic of the whole population i.e., what are those methods by which we can study our population parameters to draw a proper statistical inference.