IED CH 7

CHAPTER-7-EMPLOYMENT: GROWTH, INFORMALISATION AND OTHER ISSUES
MULTIPLE CHOICE QUESTIONS

1 What was the average rate of growth of employment during 1950-2010?
(A) 1 percent
(B) 2 percent
(C) 5 percent
(D) 10 percent
2 Manufacturing, Construction, Electricity, gas and water supply are included in
A. Primary sector
B. Secondary sector
C. Tertiary sector
D. All of the above
3 In rural areas unemployment can be divided into :
(I) Seasonal Unemployment
(II) Disguised unemployment
(III) Industrial unemployment.
A. I,II
B. I only
C. II only
D. I,II,III
4 Cyclical unemployment refers to
A. Voluntary unemployment
B. Disguised unemployment
C. Unemployment during recessionary phase of a trade cycle
D. Seasonal unemployment
5 ----------- unemployment occurs due to delay in the mobility of factors across different occupations:
(Structural/ Frictional)
6 If a construction site manager hires two workers on daily wages basis, such a situation is covered
under ---------- (Formal/ Informal) sector.
7 …………. refers to a situation when the economy is able to produce more goods and services
without a proportionate increase in employment opportunities. (Jobless growth/self-employment)
1|Page 8 October 2021,ZIET BHUBANESWAR

8. Unemployment is situation in which all those who, owing to lack of work, are not working but
either seek work through employment exchange, intermediaries, friends or relative or by making
application to prospective employers or express their willingness or availability for work under the
prevailing condition of work and remunerations. This definition is given by:
(a) Economists
(b) Census of India
(c) National Sample Survey Organisation
(d) Directorate general of Employment and Training
9 Which of the following is working in the informal sector?

(a) A private school teacher in a school which has 25 teachers.
(b) The owner of a textile shop employing nine workers
(c) Driver of a bus company which has more than 10 buses with 20 drivers, conductors and
other workers.
(d) Civil engineer working in a construction company which has 10 workers.
10. Studying about working people: (choose the correct alternative)
(a) Helps in understanding and planning our human resources.
(b) Helps us to analyse the contribution made by different industries and sectors
towardsnational income.
(c) Helps us to address many social issues such as exploitation of marginalised sections of the
society, child labour, etc.
(d) All of the above
11. The number of persons employed per hundred persons is termed as:
(a) Worker population ratio
(b) Headcount ratio
(c) Capital gain ratio
(d) Legal reserve ratio
12. The process of moving from self-employment and regular salaried employment to casual wage work
noticed during 1972-94 as:
(a) Casualisation of workforce

(b) Informalisation of workforce
(c) Jobless growth
(d) None of these
13 ________ is a major source of livelihood for both men and women as this category accounts for
more than 50% of India’s workforce. (choose the correct alternative)
(a) Self- employment
(b) Casual wage labour
(c) Regular salaried employment
(d) None of these

14. Some people look for jobs in newspapers, some look for a job through friends and relatives. In
many cities, people standing in some areas looking for people to employ them for that day’s work.
Some go to factories and office and give bio-data and ask whether there is any vacancy in their
factory or office. Some go to employment exchanges. The situation described in the above
paragraph is called__________. (choose the correct alternative)
(a) Disguised unemployment
(b) Seasonal unemployment
(c) Open unemployment
(d) Structural unemployment
15 _______ provides different estimates of unemployment,attributes of the unemployment and the

variety of unemployment prevailing in our country.(chose the correct alternative)
(a) National Statistical Office’s Reports of Employment and Unemployment Situation
(b) Reports of Census of India
(c) Directorate General of Employment and Training
(d) All of these.
16 All economic activities divide into eight different industrial divisions. They are (i) Agriculture (ii) Mining and
Quarrying (iii) Manufacturing (iv) Electricity, Gas and Water Supply (v) Construction (vi) Trade (vii)
Transport and Storage and (viii) Services. Primary Sector include ____________and ____________(Fill up
the blank with correct alternative)
Alternatives:
a) i and ii
b) ii and iii
c) i and iii
d) i and iv
17 From the set of statements given in Column I and Column II, choose the correct pair of statements:
Column I Column II
A .Jobless (i)Social consequence of unemployment

growth
B .Hiredworker (II)Leads to chronic unemployment
C. Class (III)Teacher working in a school

struggle
D.Worker- (IV) Total workforce

population ratio
________________ x 100
Total Population

Alternatives:
a) A-i
b) B-iii
c) C-ii
d) D-iv
18 Unemployment refers to people

(A) Who are not willing to work
(B) Who are willing but do not get work
(C) Who leave their jobs in search of better ones
(D) Who have been dismissed because of incorrect practices
19 Which of the following sources collect data on unemployment?
(A) Census Reports of India
(B) National Sample Survey Organization's Reports of Employment and Unemployment Situation
(C) Directorate General of Employment and Training Data of Registration with Employment
exchange
(D) all of the above
20 Poverty alleviation programmes aim at providing not only employment but also services in
areas such as
(A) primary health, primary education, rural drinking water, nutrition
(B) assistance for people to buy income and employment generating assets, development of
community assets by generating wage employment
(C) construction of houses and sanitation, laying of rural roads, development of wastelands
(D) all of the above
21 Informal workers
(A) Work in factories
(B) Work in government department
(C) Do not get social security benefits
(D) Form trade unions

22 Why are women, in general and urban women, in particular, not working?
(A) men are able to earn high incomes
(B) families discourage female members from taking up jobs.
(C) many household activities engaged by women are not recognized as productive work.
(D) (a) & (b)
23 Which of the following worker is a regular salaried employee?
(A) Owner of a saloon
(B) Rickshaw puller
(C) Cashier in State Bank of India
(D) Vegetable vendor
24
Which of the following is not a feature of organized sector?
(A) Job Security
(B) Social security benefits
(C) Irregular payment
(D) Fixed working hours
25 NREGA 2005 promises ________ of guaranteed wage employment to all rural households who
volunteer to do unskilled manual work.
(A) 100 Days
(B)110
(C) 80 Days
(D)None of these
26 Which type of unemployment mostly found in agricultural sector?
(A)Disguised unemployment
(B)Structural unemployment
(C) Industrial unemployment
(D)None of these
27 Unemployment arising from economic fluctuations is called:
(A)Disguised Unemployment
(B)Cyclical Unemployment
(C)Seasonal Unemployment
(D)None of these

28 A situation when the level of output in the economy tends to rise owing to innovative technology
without any meaningful rise in the level of employment:
(A)Jobless Growth
(B)Potential Growth
(C) Both A and B
(D)None of these
29 Unemployment leads to which of the following:
(A)Loss of manpower
(B)Loss of output
(C) Decline in capital formation
(D)All of these
30 High rate of participation of women in rural areas compared with urban areas happens because:
(A)Poverty compels women to avoid education and seek employment
(B) Need support the family, owing to low family income in rural India
(C) High productivity requirements in the available jobs in rural areas
(D)Both A and B
31 Increase in the level of output of the economy is achieved through:
(A)Greater employment opportunities in the economy
(B)Employing better technology
(C)Both A and B
(D)None of these
32 A situation where percentage of workforce in the formal sector tends to decline and that in the
informal sector tends to rise.
(A)Casualisation of Workforce
(B) Formalisationm f Workforce
(C) Infrormalisation of Workforce
(D)None of these
33 A situation when the percentage of casually-hired works in the total workforce tends to rise
overtime:
(A)Casualisation of Workforce
(B)Infrormalisation of Workforce
(C) Formalisationof Workforce
(D)None of these
34 Data for formal employment is collected by:
(a) Ministry of Labour

(b) Ministry of Human Resources and development
(c) National sample survey Organisation

35 Percentage of adult population participating in production activity is called:
(a) Labour force

(b) Workforce
(c) Labour supply
(d) Participation rate
36 When the number of persons willing to work (at the existing wage rate) increases or decreases, it changes the size of:
(a) Workforce
(b) Total population
(c) Labour force
(d) All of these
37 _________________ refers to the number of people actually working and does not account for those who are willing
to work.
(a) Workforce
(b) Labour force
(c) Both (a) and (b)
(d) None of these
38 Formal sector includes all those enterprises which employ:
(a) More than 10 workers

(b) 10 workers
(c) Both (a) and (b)
39 Specific programmes aiming at generation of self-employment:
(a) Rural employment generation programme

(b) SampoornaGrameenRozgarYojana
(c) MNREGA
(d) None of these
40 One of the following is primary sector activity. Which is the one? Analysis
(A) Mining and Quarrying
(B) Construction
(C) Trade
(D) Transport and Storage
41 What is the female worker’s participation rate in a rural area? Remembering

A) Lower in a rural area
B) Higher in rural areas
C) Higher in urban areas
D) Lower in both the areas

42 Job security is the attraction of a sector due to which workers seek job in it. Think Evaluation
which is that sector?
A) Unorganized Sector
B) Agriculture Sector
C) Organized Sector
D) Private Sector
43 Which of the following economic activity does not exist in a tertiary sector? Application
A) Bee-keeping
B) Teaching
C) Banking
D) Working in the Call Centre
44 When does underemployment occur? Application

A) When people do not want to work
B) When people are not skilled
C) When people are not paid for their work
D) When people are working less than they are capable of
45 An establishment with four hired workers is known as which sector Remembering
establishment.
A) Informal
B) Formal
C) Both
D) None
46 Can you specify why jobs are not created in the secondary sector, although it is Creative
expected to do?
(A) It is weak sector
(B) It depended on machines
(C) people failed to work as expected
(D) None of these

ANSWER
Multiple Choice question

Q.1 B
Q.2 B
Q.3 A
Q.4 C
Q.5 Frictional
Q.6 Informal
Q.7 Jobless growth
8 C
9 B
10 D
11 A
12 A
13 A
14 C
15 D
16 A
17 D
18 (B)
19 (D)
20 (D)
21 (C)
22 (D)
23 (C)
24 (C)
25 (A)
26 (A)
27 (B)
28 (A)
29 (D)
30 (D)
31 (C)
32 (C)
33 (A)
34 (a)

35 (d)
36 (c)
37 (a)
38 (c )
39 (a )
40 A (Mining and Quarrying)
41 B (Higher in rural areas)
42 C (Organized Sector)
43 A (Bee-keeping)
44 D (When people are working less than they are capable of)
45 A (Informal)
46 B (It depended on machines)
PREPIRED BY : PGT ECONOMICS OF BHUBANESWAR, GUWAHATI,

KOLKATA, RANCHI, SILCHAR AND TINSIKIA REGION.
VETTED BY : KOLKATA REGION
10 | P a g e 8 October 2021,ZIET BHUBANESWAR

CASE STUDY BASED QUESTIONS

SI.No. Read the passage given below and answer the following questions.
1. The number of new entrants in the job market and at the same time the number of new jobs
created has never been coterminous in our country. As a result, there has been a large vacuum
as far as the employment scenario in the is concerned. What is meant by large vacuum as far as
the employment scenario is concerned is meant that unemployment problem is quite grave in
our country. Unemployment in our country is in various forms and type like – seasonal
unemployment, educated unemployment, disguised unemployment etc.
(a) In India people -----------(can’t/can) remain completely unemployed for very long
period of time due to their economics condition.
(b) In India, seasonal unemployment is predominantly associated with ---------
(Agriculture/industry).
(c) ---------- (Work Force Participation Rate/Dependency Ratio) is an indicator which

is used for analysing the employment situation of the country.
(d) Education System in India is not job oriented. (True/False)
2
Labour Supply refers to the amount of the labour that the workers are willing to the offer
corresponding to a particular wage rate. You may be able to work 10 hours a day, but willing
to work only for 6 hours a day at a particular wage. Laboursupply , thus is measured in terms
of man hours of work. It is always estimated in relation to wage rate. Labour force on the other
hand, refers to the number of the workers actually working or willing to work. It is not related
to wage rate.
(a) The number of workers actually working –
A.Labour force
B.Work force
C.Labour supply
D.None of the above
(b)Labour supply is always estimated in relation to wage rate. (True/False)
(c)Labour force is--------------(not related/related) to wage rate.

3 Ahmedabad is a prosperous city with its wealth based on the produce of more
than 60 textile mills with a labour force of 1,50,000 workers employed in them.
These workers had, over the course of the century, acquired a certain degree of
income security. They had secure jobs with a living wage; they were covered by
social security schemes protecting their health and old age. They had a strong
trade union which not only represented them in disputes but also ran activities
for the welfare of workers and their families. In the early 1980s, textile mills all
over the country began to close down. In some places, such as Mumbai, the mills
closed rapidly. In Ahmedabad, the process of closure was long drawn out and
spread over 10 years. Over this period, approximately over 80,000 permanent
workers and over 50,000 non-permanent workers lost their jobs and were driven
to the informal sector. The city experienced an economic recession and public
disturbances, especially communal riots. A whole class of workers was thrown
back from the middle class into the informal sector, into poverty. There was
widespread alcoholism and suicides, children were withdrawn from school and
sent to work. Source: RenanaJhabvala, Ratna M. Sudarshan and JeemolUnni
(Ed.) Informal Economy at Centre Stage: New Structures of Employment, Sage
Publications, New Delhi, 2003, pp.
A Informal workers: (choose the correct alternative)
(a) Work in factories

(b) Work in government department
(c) Do not get social security benefits
(d) Form trade unions
B Read the following statement Assertion (A) and Reason (R)

Assertion (A)-It is necessary to create employment in the formal sector than in the informal
sector.
Reason (R) –Workers of the formal sector enjoy social security benefits and also they remain
protected by the labour laws which is not the case in the informal sector.
From the given alternatives choose the correct one:
Alternatives:
(A) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct
explanation of Assertion (A).
(B) Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct
(C) Assertion (A) is true but Reason (R) is false.
(D) Assertion (A) is false but Reason (R) is true.

C Read the following statements Assertion (A) and Reason (R)
Assertion (A) -Informal worker generally form the labour union.
Reason(R)- The informal sectors do not give regular income and don't have
any protection and follow any regulation of the government.
Alternative:
(A)Both Assertion (A) and Reason (R) are true and Reason (R) is the correct
(B) Both Assertion (A) and Reason (R) are true and Reason (R) is not the
correct explanation of Assertion (A).
(D) Assertion (A) is false but Reason (R) is true
D _______ of a workforce refers to a situation whereby the proportion of workforce in the

informal sector to total work force increases. (Fill in the blanks)
4 India’s unemployment rate – the share of labour force that is without work but
available for it – rose sharply to 7.11% in the pandemic year 2020 to reach the
highest level in at least three decades, according to the International Labour
Organization’s (ILO) ILOSTAT database. For over a decade, India’s joblessness has
been more acute than its immediate neighbours, while till 2009 Sri Lanka used to
have a higher rate.
Though the methodology may not be strictly comparable, going by the Centre for
Monitoring Indian Economy’s (CME) data for the subsequent period, the second
Covid wave seems to have pushed India’s unemployment rate further and the current
calender year could possibly see an even higher rate of joblessness in the country.
Monthly unemployment rate of the country, as per CMIE, rose from 6.62% in January
2021 to 7.97% in April. Amidst lockdown and restrictions on mobility, the
unemployment rate touched 14.5% in the week ended May 16, 2021, and rose further
to 14.7% for the week ended May 23, according to CMIE.
Financial Express: May 29 , 2021
A Which of the following statements is consistent with the situation of jobless growth?
(a) Widening gap between the growth of GDP and employment.

(b) Increase in production of goods and services without generating employment.
(c) Economic growth is driven by technological advancement and use of capital intensive
techniques.
(d) All of the above.

B Unemployment rate can be calculated by using the formula:
(A) Labour force+ work force /size of labour force x100

(B) No of unemployed persons /100 x labour force
(C) Labour force –work force /size of labour force x 100
(D) No of unemployed persons /labour force x100
State whether the following statements are true:
A) All person in a country who are working for seeking work are included
in the workforce.
B) A low employment elasticity indicates that economy is able to generate
very few employment opportunities as against an increase in the rate of
economic growth.
C) In the course of economic development of country, workers migrate from
rural to urban area
D) The Indian economy has been able to provide more goods and services
due to growth in employment opportunities.
5 Economic Survey:2020
The survey said the number of self-employed, regular wage earners and casual wage earners
have come down by 17 lakh in six years till 2017018. Quoting various government sources, it
pegged India’s workforce at 47.12 crore in FY18 compared with 47.29 crore in FY12, even as
employment was getting more formal in nature.There was also drop in female employment
in the overall job space. From 12.91 crore in 2011-12, their number came down to 10.85
crore in 2017-18. Stressing on the need to set things right, the survey said,” In an era of
globalization, no country can develop and achive its full potential if half of its population is
locked in non-remunerative, less productive and non-economic activities”.
The survey also found that the number of self-employed people too,came down during
the period to 24.21 crore from 24.54 crore, but that is due to a significant drop in the
number of unpaid family labourcategory.The share of regular salaries employed in the total
employment landscape has, however, increased by five percentage points to 23% in 2017-18
from 18% in 2011-12. In absolute terms, the jump is significant, around 2.62 crore: 1.39 crore
in urban areas 1.21 crore in rural India. On the otherhand, the distribution of workers in
casual labour category decreased by 5 percentage points from 30% in 2011-12 to 25% in
2017-18, with the decline being in rural areas.

A
A situation where percentage of workforce in the formal sector tends to decline and that in
the informal sector tends to rise is known as:
(A) Informalisation
(B)Casualisation
(C) Jobless growth
(D)None of these
B An arrangement where a worker uses his own resources to make living is known as:
(A)Wage employment
(B)Regular employment
(C) Casual employment
(D)Self- emplyment
C Less employment of females in comparison to males is an indication of:

(A)Economic Backwardness
(B)Social Backwardness
(C) Both (A) and (B)
(D)None of these
D AAll non-farm casual wage labourers who work for more than one employer such as
construction workers and head-load workers are__________(Formal/Informal ) sector
workers.
6  Labour Force Participation Rate(LFPR) is a measure of the proportion of the country’s

population that is engaged actively in the labour market, either by working or seeking
work.It provides an indicationof the size of the supply of labour available to engage in
the production of goods and services.
 The gap between the annual growth of labour force and employment growth provides
hints towards increase in the existing stock of unemployed people. Work-Participation
Rate(WPR) is a measure of the proportion of the country’s labour force who is
engaged in work.It provides information on the ability of the economy to generate
employment.
A Work-Participation Rate(WPR) is a measure of proportion of the country’s ________(Labour
Force/Unemployed People).
B __________(LFPR/WPR) provides indication of the size of the supply of labour available to

engage in the production of goods and services.

C The workers who are on payroll of their employer are called______(Casual/Regular) workers
D The formula to calculate worker population ratio is _______
7 Read the following case study carefully and answer question 1-4 on the basis of the same
Logically there are only four major criteria according to which a person may be called
unemployed or under-employed. We may call a person unemployed or under –employed if
either:
(i) He is gainfully occupied during the year for a number of hours (or days) less than
some normal or optimal hours(or days) defined as fully employment hours or days.
(ii) He earns an income per year less than some desirable minimum:
(iii) He is willing to do more work than he is doing at present : he may either be
actively searching for more work or be available for more work if it is offered on
terms to which he is accustomed;
(iv) He is removable from his present employment in the sense that his contribution
to output is less than some normal productivity, and therefore his removal would
not reduce output if the productivity of the remaining workers is normalised with
minor changes in technique and / or organisation.
I shall refer to these criteria as (i) the time criterion ,(ii) the income criterion (iii) the willingness
criterion and (iv) the productivity criterion respectively.
___ presidential Address by Prof. raj Krishna, Indian society of

Agricultural Economics, Mumbai.
1. People who are not willing to work at prevailing wage rate are also called
involuntary unemployed. ( True or false)
2. Prime reason for the rising unemployment in India is ___________
(jobless growth/casualization of workforce) (Fill in the blank with the correct alternative )
3. In India, Which of the following is not a source of data for unemployment?
(choose the correct alternative)
(a) National sample survey office
(b) Labour Force survey
(c) Employment Exchanges
(d) Ministry of labour
4. _______________(Disguised / Seasonal ) unemployment occurs when the
number of workers engaged in a job is much more than actually required to accomplish
it.
(Fill in the blank with the correct alternative)

8 India’s unemployment rate shot up to 7.8% for the week ended November 22 compared to 5.5
% in the preceding week, signaling weakening of labour market.
Labour participation rate fell to 39.3% resulting in a sharp fall of 114 basis points in
employment rate at 36.24% data from the centre for Monitoring Indian Economy showed
(CMTE).
While this was a sign of weakening labour markets over the last four weeks, it also reflected
the inability of the labour markets to absorb adequate proportions of the working age
population during the festive season of 2020,the CMIE said.
“The sharp rise of the unemployment , rate is against the trend seen since the recovery began.
The trend has been one of falling unemployment rates with an occasional spike which
happened during the first fortnight of October 10”, it said .As per CMIE, the 36.2% employment
rate in the week of November22 I the lowest employment rate since the recovery stagnated in
the late June 2020. It also marked the fourth consecutive fall in the rate since the week of
October 25. The employment rate stood at 37.38% in the week ended November 15.
“The deterioration of labour metrics in November is a signal again of the early exhaustion of
the recovery process that began in late May this year”, it said.
“The recovery is not complete. The employment rate never reached its pre-lockdown levels.
And before reaching there, it has started to decline again”.
According to CMIE, the employment rate is the best measure of the health of the Indian
economy as it measures the proportion of the working age population that are employed.
Source: Economic Times, Nov.27,2020
1. Rise in unemployment rate for the week ended in the month of November 22, signals
weakening of ______ (commodity/ labour) market.
2. Rise in unemployment rate is an indicator of incomplete _____(recovery/recession) period
since May, 2020.
3. Worker participation ratio is calculated by dividing the total number of workers in India by
the total ___________(population / labour force) in India and then multiplying by 100.
4. Measure to reduce unemployment in short period of time:
(a) Reduction in inequalities in the distribution of income and wealth
(b) Increase in investment in private and public sectors
( c) Reduction in growth of population
(e )None of these.

9 Read the passage given below and answer the following questions:
The Constitution of India guarantees equality and prohibits discrimination on grounds of

religion, race, caste, sex, birthplace, residence or any of them. The Constitution
guarantees equality of opportunity for all citizens in matters relating to employment or
appointment to any office under the State. No citizen can, on grounds only of religion,
race, caste, sex, descent, place of birth, residence or any of them, be ineligible for, or
discriminated against in respect of, any employment or office under the State. The Equal
Remuneration Act also forbids discrimination in hiring, pay and conditions of
employment between male and female workers engaged in the same or similar work,
except where dissimilar treatment is mandated or permitted under the law. The Code on
Wages Bill, 2019 was passed by the Lok Sabha on July 30, 2019 and Rajya Sabha on 02
August 2019. The Wage Code regulates wage and bonus payments in all
employment. The Code combines the provision of the following four laws: (i) the
Payment of Wages Act, 1936, (ii) the Minimum Wages Act, 1948, (iii) the Payment of
Bonus Act, 1965, and (iv) the Equal Remuneration Act, 1976. The Wage Code repeals
the above 4 laws
A Labour laws are formed to:
A) Check discrimination against anyone.

B) Give more power to male workers
C) Give more power to female workers
D) None of these
B The Constitution guarantees on......
A) Right to Equality
B) Restriction on sharing views
C) Restriction on movement
D) None of these

C There is a need to make effective execution of law of equal remuneration for both male
and female in order to
A) Avoid discrimination
B) Promote Culture
C) Maintain Tradition
D) None of these
10 At 8 pm every day, 200 young technicians at pathology giant Thyrocare Technologies begin
work at its automated clinical chemistry laboratory at Turbhe in Navi Mumbai. For the next 12
hours, they operate a range of state-of-the-art diagnostic equipment, which can process up to
200,000 investigations a night for thyroid, kidney and liver diseases, testing nearly 45,000
samples flown in from 1,300 collection centres in India. What would have taken several days of
investigation by at least 1,000 technicians a decade ago is now being done by a workforce a fifth
the size in less than a day. "Many job-seekers are qualified for the job, but not skilled," says A.
Velumani, the company's CEO, who ensures freshers are given specialised training. The new
challenges are exciting and even lighten the manual load, but that's for a lucky few. For the
majority of jobseekers in the healthcare segment, the prospects are grim, with little job security
and salaries roughly half what large diagnostic chains may offer. Every month, a million Indians
become age-eligible to join the workforce, but the growth in jobs has not kept pace with the
rising number of aspirants. The result: unemployment has been on the rise, despite India
supposedly being one of the brighter spots in a slowing global economy. Thirty-three-year-old
Ratna Shankar Choubey, a father of two, in Bihar recently lost his job for resisting a change
from being a permanent to temporary in the company. "Employment creation will be one of our
greatest challenges for the next decade," says Jayant Sinha, minister of state for finance. India's
unemployment rate grew from 6.8 per cent in 2001 to 9.6 per cent in 2011, according to Census
2011 data.
A In spite of economic growth India faces joblessness due to
A) Less employment opportunity

B) Less workers
C) Less interest in workers
D) None of the above
B Many job-seekers are qualified for the job, but not
A) Unskilled
B) Skilled
C) Educated
D) All of the above
C Employment creation will be one of our greatest challenges for the next decade .(T/F)
ANSWER SHEETS
Case Based Questions

Q.No. Answer
1.(a) Can’t
1.(b) Agriculture
1.(c)
Work Force Participation Rate
1.(d) True
2.(a) B
2.(b) True
2.(c) Not related
3.(A) C
3.(B) A
3.(C) D
3.(D) Informalisation
Case Study 2
4.(A) D
4.(B) D
4.(C) C
5.(A) A
5.(B) D

5.(C) C
5.(D) Informal
6.(A) Labour Force
6.(B) LFPR
6.(C) Regular Workers
6.(D) Total number of Workers divided by Total Population
7.(A) 1. False
7.(B) jobless growth
7.(C) (d) Ministry of Labour
7.(D) Disguised
8.(A) . labour
8.(B) . recovery
8.(C) Population
8.(D) (b) Increase in investment in private and public sectors
9.(A) A) Check discrimination against anyone.
9.(B) A. Right to Equality

9.(C) A. Avoid discrimination
Case Study Questions - 2
10.(A) A. Less employment opportunity
10.(B) B. Skilled
10.(C) True
PREPIRED BY : PGT ECONOMICS OF BHUBANESWAR,

GUWAHATI, KOLKATA, RANCHI, SILCHAR AND TINSIKIA REGION .

TRUE AND FALSE QUESTIONS

SI.No. Question
1 All those worker working in public sector establishment & private sector establishment which
employ 15 hired workers or more are treated as informal workers
A)True
B)False
2 An arrangement in which a worker uses his own resources to make a living, is known as wage
employment.
A)True
B)False
3 Worker population ratio is calculated by dividing the total number of worker in India by the
population in India and multiplying it by 100.
A)True
B)False
4 In the past few decades tertiary sector has created maximum job opportunities in India.
A)True
B)False
5 Which of the following statement is false?
(a) Hired workers are those who work for others and are not self –employed.
(b) Workforce refers to that part of the labour force which is actually employed.
(c) Number of Unemployed Persons =Workforce – Labour force.
(d) High priority for education implies low priority for jobs at an early age.
6 Which of the following statement is true in context of Informal Sector?
(a) Workers and enterprises in the informal sector do not get regular income.
(b) Workers are dismissed without any compensation.
(c) Technology used in the informal sector enterprises is outdated, they also do not
maintain any accounts.
(d) All of these.

7 Which of the following statement is not true for a worker?
(A) A worker contributes to the GDP.
(B) Workers may temporarily abstain from work due to illness.
(C) Self-employed are not workers.
(D) Those who help the main workers are also workers.
8 Whether is the following is the true or a false statement regarding employment generation by
government.
Through various schemes and policies, the government takes initiatives to generate
employment directly and indirectly.
9 Low level of education along with poverty is the principal reason why womenlook for
sustainable jobs at early age in rural areas.
A)True
B)False
10 Secondary sector is taking a lead over tertiary sector as a source of employment in urban areas.
A)True
B)False
11 Formal sector workers are highly vulnerable to uncertainties of the market.
A)True
B)False
12 India with the help of United Nations Development Programme is working towards providing
social security benefits to informal sector workers.
A)True
B)False
13 Disguised unemployment mostly visible in urban India.
A)True
B)False
14 Frictional unemployment is temporary in nature.
A)True
B)False

15 White collared job preference is voluntary unemployment.
A)True
B)False
16 Workforce refers to that part of labour force which is actually working.
A)True
B)False
17 Workforce refers to that part of the labour force which is actually employed
A)True
B)False
18 Number of unemployed persons = Workforce – Labour force
A)True
B)False
19 Laborious work is tough for men to do.
(A) True
(B) False
20 The entire public sector establishment and those private sector establishment which employ 10
or more hired workers are called “formal sector establishments”.
A) True
B) False
21 Worker-population ratio is calculated by dividing total number of workers by population,
multiplied by 1000
A) True
B) False
22 Casualization of workforcemeans the process of moving from self – employment and regular
salaried employment to casual wage work.
A) True
B) False

23 In India most of the farmers are self-employed but are struggling to survive.
A) True
B) False
ANSWER
True False Questions
Q.No. Answer
1. False
2. False
3. True
4. True
5. C
6. D
7. C
8. TRUE
9 True
10 False
11 False
12 False
13 FALSE
14 TRUE
15 TRUE
16 TRUE
17 TRUE
18 FALSE
19 FALSE
20 TRUE
21 FALSE
22 TRUE
23 TRUE


ASSERTION- REASON QUESTIONS
SI.No. Question
1 Assertion (A): lesser women are found in regular salaried employment.
Reason (R): Regular salaried employment do not require skills and high level of literacy.
A. Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion
(A).
B. Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation of
Assertion (A).
C. Assertion (A) is true but Reason (R) is false.
D. Assertion (A) is false but Reason (R) is true.
2 Assertion (A): Madhya Pradesh govt. implemented ‘Jeevan Shakti Yojana '
Reason (R): It is implemented to increase the employment opportunities of women
entrepreneurs in urban areas of the state. A. Assertion (A) and Reason (R) are true and Reason
(R) is the correct explanation of Assertion (A).
Assertion (A).
3 Assertion(A): More proportion of male workforce employed in primary sector as compared to
proportion of female workforce.
Reason (R): Male workforce get opportunities in both secondary and service sector.
A. Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion
(A).
Assertion (A).
4 Read the following statements - Assertion (A) and Reason (R)

Assertion (A)- Urban unemployment is a spillover of rural unemployment.
Reason (R) –Owning to the lack of opportunities of employment people in the rural areas are
compelled to migrate to the urban areas in search of livelihood.
Alternatives:

Assertion (A) –Economic activity implies only production activity.
Reason (R) –Economic activity relates to the use of scarce resource.
Alternatives:
Assertion (A)- There are several examples in the rural areas of India where there are more
workers in the family but gross income of the family is low.
Reason (R)- Disguised unemployment lowers efficient productivity.
Alternatives:
Assertion (A) - Many programmes that the governments implement, aimed at alleviating
poverty, are through employment generation
Reason (R) - All these programmes aim at providing not only employment but also services in
areas such as primary health, primary education, rural drinking water, nutrition, assistance for
people to buy income and employment generating assets, development of community assets by
generating wage employment, construction of houses and sanitation, assistance for constructing
houses, laying of rural roads, development of wastelands/ degraded lands.
Alternatives:

8 Read the following statement –Assertion (A) and Reason (R)
Assertion (A)-Worker –population ratio of women workers in rural areas is more the women in
urban areas.
Reason (R) –The number of women workers in our country are generally underestimated
because many activities undertaken by them are not recognised as productive work.
Alternatives:
9 Assertion (A): Number of women workers in India are generally over estimated.
Reason (R): Many activities undertaken by women workers are not recognized as productive
work.
(A) Both Assertion (A) and Reason (R) are True and Reason (R) is the correct explanation of
Assertion (A).
(B) Both Assertion (A) and Reason (R) are True and Reason (R) is not the correct explanation of
Assertion (A).
(C) Assertion (A) is True but Reason (R) is False.
(D) Assertion (A) is False but Reason (R) is True.
10 (A): More proportion of female workforce is employed in the primary sector as compared to
proportion of male work force.
Reason (R): Male work force get opportunities in both secondary and service sectors.
(A) Both Assertion (A) and Reason (R) are True and Reason (R) is the correct explanation of
Assertion (A).
(B) Both Assertion (A) and Reason (R) are True and Reason (R) is not the correct explanation of
Assertion (A).
(C) Assertion (A) is True but Reason (R) is False.
(D) Assertion (A) is False but Reason (R) is True.
11. Assertion(A):Jobless growth is a serious phenomenon challenging the Indian Economy.
Reason(R):GDP growth in India is driven largely by technology.
(A) Both Assertion(A) and Reason(R) are true and Reason(R) is correct explanation of
Assertion(A).
(B) Both Assertion(A) and Reason(R) both are true but Reason(R) is not the correct explanation
of Assertion(A).
(C) Assertion(A) is true but Reason(R)is false.
(D) Assertion(A) is false but Reason(R) is true.

12. Assertion(A):Labour force and Work force are identical concept.
Reason(R):Labour force refers to thenumber of workers actually working and willing to work.
Assertion(A).
of Assertion(A).
(D) Assertion(A) is false but Reason(R) is true
13. Assertion(A): Percentage of female workeris low in urban areas.
Reason(R): In urban areas, jobs for women are governed by the family decisions rather than
individual decision.
Assertion(A).
of Assertion(A).
(C) Assertion(A) is true but Reason(R) is false.
14. Assertion(A): Disguised unemployment is found in India.
Reason(R):Agricultural productivity at the margin is close to zero.
Assertion(A).
of Assertion(A).
15. Assertion(A):Formal sector workers are entitled to social security benefits.
Reason(R):Informal sector workers are protected by labour laws.
Assertion(A).
of Assertion(A).
16 Assertion(A). Jobless growth refers to a situation when the economy is able to produce more
goods and services without a corresponding increase in the level of employment . India is
experiencing the phenomenon of jobless growth.
Reason( R) During the period 1950-2010, GDP of India grew positively and was higher than the
employment growth. During this period employment grew at the rate of not more than 2%.
During these years we also find a widening gap between the growth of GDP and employment.
Alternatives:

(a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of
Assertion(A).
(b) Both Assertion (A) and Reason (R) are true and Reason (R)is not the correctexplanation
of Assertion(A).
(c) Assertion (A ) is true but Reason (R) is false
(d) Assertion (A ) is False but Reason (R) is True
17 Assertion (A). As per data available on worker population ratio in India for the year 2017-18,
For every 100 urban males 53 are engaged in economic activities, whereas this number is 14 for
every 100 urban females. For every 100 rural males 51 are engaged in economic activities, this
number is 18 for every 100 rural females.
Reason (R) Compared to females, more males are found to be working in India. It is common to
find that where men are able to earn high incomes, families discourage female members from
taking up jobs. Lack of skills and education also is one of the reasons of less involvement of
women workers in rural and urban areas.
Alternatives:
(a) Both Assertion (A) and Reason (R)are true and Reason ( R) is the correct explanation of
Assertion(A).
(b) Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation
of Assertion(A).
(d) Assertion (A ) is False but Reason (R) is True
18 Assertion (A): Poverty and unemployment are related to each other.
Reason (R): Unemployment leads to poverty.
Alternatives:
(a) Both Assertion (A) and Reason (R)are true and Reason ( R) is the correct explanation of
Assertion(A).
(b) Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation
of Assertion(A).
(d) Assertion (A ) is False but Reason (R) is true
19 Assertion: Labourforceincludes all those who are working and also includes those who want to
work.
Reason: With population increase labour force increases.
(A) Both Assertion and reason are true and reason is correct explanation of assertion.
(B) Assertion and reason both are true but reason is not the correct explanation of assertion.
(C) Assertion is true, reason is false.
(D) Assertion is false, reason is true.

20 Assertion: Workforce includes all persons who are working.
Reason: Unemployed Ram is included in workforce.
21 Assertion: In Indian economy, without generating employment we have been able to produce
goods and services. This is called” jobless growth”.
Reason: In Indian economy more than required people are engaged in Primary Sector. But
Jobs are being created in secondary and tertiary sector. People do not have those skills to get
those jobs that are being created in secondary and tertiary sector.
22 Assertion: The labour working on contracts do not get the benefits that a
normal workforce receives in the formal sectors
Reason: Formal sector is small in India.
23 Assertion: Contractual workers are highly paid in India.
Reason: Lot of manufacturing sectors employ workers on contractual basis through
"subcontracts" to work on temporary basis

ANSWER
Q.No. Answer
1. C
2. A
3. D
4 A
5 D
6 B
7 A
8 B
9 (D)
10 (A)
11 A
12 D
13 C
14 A
15 C
16 (a)Both Assertion (A) and Reason (R )are true and Reason ( R) is the correct
explanation of Assertion(A).
17 (a ) Both Assertion (A) and Reason (R )are true and Reason ( R) is the correct
explanation of Assertion(A).
18 (a)
19 (B)Assertion and reason both are true but reason is not the correct explanation of
assertion
20 (C) Assertion is true, reason is false.
21 (A) Both Assertion and reason are true and reason is correct explanation of
assertion.
22 (B)Assertion and reason both are true but reason is not the correct explanation of
assertion
23 (D) Assertion is false, reason is true.


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CHAPTER-7-EMPLOYMENT: GROWTH, INFORMALISATION AND OTHER ISSUES

MULTIPLE CHOICE QUESTIONS

1|Page 8 October 2021,ZIET BHUBANESWAR

9 Which of the following is working in the informal sector?

(a) Casualisation of workforce

2|Page 8 October 2021,ZIET BHUBANESWAR

15 _______ provides different estimates of unemployment,attributes of the unemployment and the

A .Jobless (i)Social consequence of unemployment

B .Hiredworker (II)Leads to chronic unemployment

C. Class (III)Teacher working in a school

D.Worker- (IV) Total workforce

3|Page 8 October 2021,ZIET BHUBANESWAR

18 Unemployment refers to people

4|Page 8 October 2021,ZIET BHUBANESWAR

5|Page 8 October 2021,ZIET BHUBANESWAR

(a) Ministry of Labour

6|Page 8 October 2021,ZIET BHUBANESWAR

(a) Labour force

(a) More than 10 workers

(a) Rural employment generation programme

41 What is the female worker’s participation rate in a rural area? Remembering

7|Page 8 October 2021,ZIET BHUBANESWAR

44 When does underemployment occur? Application

8|Page 8 October 2021,ZIET BHUBANESWAR

Multiple Choice question

9|Page 8 October 2021,ZIET BHUBANESWAR

PREPIRED BY : PGT ECONOMICS OF BHUBANESWAR, GUWAHATI,

10 | P a g e 8 October 2021,ZIET BHUBANESWAR

CASE STUDY BASED QUESTIONS

(c) ---------- (Work Force Participation Rate/Dependency Ratio) is an indicator which

(d) Education System in India is not job oriented. (True/False)

(a) The number of workers actually working –

D.None of the above

(b)Labour supply is always estimated in relation to wage rate. (True/False)

(c)Labour force is--------------(not related/related) to wage rate.

1|Page 8 October 2021,ZIET BHUBANESWAR

(a) Work in factories

B Read the following statement Assertion (A) and Reason (R)

2|Page 8 October 2021,ZIET BHUBANESWAR

D _______ of a workforce refers to a situation whereby the proportion of workforce in the

Financial Express: May 29 , 2021

(a) Widening gap between the growth of GDP and employment.

3|Page 8 October 2021,ZIET BHUBANESWAR

(A) Labour force+ work force /size of labour force x100

State whether the following statements are true:

4|Page 8 October 2021,ZIET BHUBANESWAR

C Less employment of females in comparison to males is an indication of:

6  Labour Force Participation Rate(LFPR) is a measure of the proportion of the country’s

B __________(LFPR/WPR) provides indication of the size of the supply of labour available to

5|Page 8 October 2021,ZIET BHUBANESWAR

___ presidential Address by Prof. raj Krishna, Indian society of

6|Page 8 October 2021,ZIET BHUBANESWAR

7|Page 8 October 2021,ZIET BHUBANESWAR

The Constitution of India guarantees equality and prohibits discrimination on grounds of

A) Check discrimination against anyone.

B The Constitution guarantees on......

B) Restriction on sharing views

8|Page 8 October 2021,ZIET BHUBANESWAR

A) Less employment opportunity