# Plus One Economics Chapter Wise Questions and Answers Chapter 7 Employment-Growth, Informalisation and Related Issues

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## Kerala Plus One Economics Chapter Wise Questions and Answers Chapter 7 Employment-Growth, Informalisation and Related Issues

### Plus One Economics Employment-Growth, Informalisation and Related Issues One Mark Questions and Answers

Question 1.
Some instances of people engaging in economic activity in given below. Identify worker from there.
(a) A man who temporarily abstains from work due to illness.
(b) A woman is paid by her employer.
(c) A self-employed farmer.
(d) All the above
(d) All the above

Question 2.
Which among the activity?
(b) Transportation
(c) Construction
(d) Mining
(d) Mining

Question 3.
Which organisation is responsible for estimating unemployment in India?
(a) ILO
(b) NSSO
(c) NitiAayog
(d) None of these
(b) NSSO

Question 4.
Identify the activity not included in secondary sector.
(a) Quarrying
(b) Manufacturing
(c) Construction
(d) Water supply
(a) Quarrying

Question 5.
Choose the correct answer Workforce refers to that part of:
(a) labour force which is employed
(b) population which is employed
(c) population which is forced to work
(d) labour force which is employed
(a) labour force which is employed

Question 6.
Name the sector in the main source of employment for the majority of workers in India.
(a) Primary Sector
(b) Secondary Sector
(c) Service Sector
(d) Tertiary sector
(a) Primary Sector

Question 7.
Who developed the concept of unemployment in India?
National Sample Survey Organisation (NSSO) has developed the concepts of unemployment suitable to Indian conditions.

Question 8.
The newly emerging jobs are found mostly in the …………. sector (Service/agriculture/manufacturing).
Service.

Question 9.
Name the main sector providing maximum employment in India?
(a) Agriculture
(b) Industry
(c) Service
(d) None of these
(a) Agriculture sector/primary sector.

### Plus One Economics Employment-Growth, Informalisation and Related Issues Two Mark Questions and Answers

Question 1.
Meena is a housewife. Besides taking care of household duties, she works in a cloth shop which is owned and operated by her husband. Can she be considered as a worker? Why?
Meena’s activities in the cloth shop owned by her husband are not considered as the activity of a worker since she is not paid for her service. If she works in the shop owned by some other person and is paid for her services then she will be considered as a worker.

Question 2.
List any five activities that contribute to national income in India.
The activities that contribute to national income in India are:

• farming
• mining
• treatment of a doctor in hospital
• manufacturing
• forestry

Question 3.
Distinguish between usual status and weekly status?
Usual status refers to a situation where a person usually spends majority of his time in work. In India, 183 days of work is a standard cutoff per usual status. On the other hand, if the person is found to be a part of the workforce during the stipulated week, he will be considered as employed by weekly status.

Question 4.
Given below some economic activities. Classify them as primary, secondary and tertiary sector activities. Agriculture, Mining and Quarrying, Manufacturing, Electricity Gas and Water Supply Construction, Trade, Transport and Storage, Services.
1. Primary sector

• Agriculture
• Mining and Quarrying

2. Secondary sector

• Manufacturing
• Electricity, Gas and Water Supply
• Construction

3. Tertiary sector

• Transport and Storage
• Services

Question 5.
What is a worker-population ratio?
Worker population ratio is the percentage of total population engaged in work. When the total number of workers is divided by population and multiplied by 100, we get the worker – population ratio.
Worker population ratio = $$\frac{\text { Total number of workers }}{\text { Population }} \times 100$$

Question 6.
Write a short note on RLEGP.
RLEGP stands for Rural Landless Employment Guarantee Programme. It was introduced in August 1983. This programme guarantees employment to at least one members of every landless family up to 100daysin a year.

### Plus One Economics Employment-Growth, Informalisation and Related Issues Three Mark Questions and Answers

Question 1.
Match the following

 A B Primary sector school teacher Secondary sector Farmer Tertiary sector Welder in a factory

 A B Primary sector Farmer Secondary sector Welder in a factory Tertiary sector Schoolteacher

Question 2.
Raj is going to school. When he is not in school, you will find him working in his farm. Can you consider him as a worker? Why?
Raj, when he is busy in his farm contributes to production but he is not paid for his work. He helps his parents in agricultural jobs. As he is not paid, he is not a paid worker.

Question 3.
Kerala economy is experiencing huge unemployment problems. Similarly, the number of workers from outside Kerala are visiting our states and engaging in different activities. What do you infer from this? Justify your answer.
In Kerala there exists problem of unemployment, especially educated unemployment. The educated people are usually unwilling to engage in manual works and therefore prefer white color jobs. They often go outside the state and even abroad to find a suitable job in accordance with their education level. At the same time, the usual works in the state are done by people coming from outside the state.

### Plus One Economics Employment-Growth, Informalisation and Related Issues Four Mark Questions and Answers

Question 1.
Name some of the recent employment generation programmes launched by the Govt, of India.
Following are some of the recent employment generation programmes launched by the Govt, of India.

• Rural Landless employment Guarantee programme (RLEGP)
• National Rural Employment Guarantee programme (NREGP)
• Bharat Nirman Programme
• Janani Suraksh%JTojana

Question 2.
Distinguish between open unemployment and technical unemployment?
When the country’s labour force does not get opportunities for gainful employment, it is termed as open unemployment. On the other hand technical unemployment refers to persons who have been thrown out of work by the introduction of superior technology.

Question 3.
Classify the following into organized sector and unorganized sector.
Street vender, school teacher, business executive, agricultural labourer, mechanic, railway ticket examiner, college professor, software engineer, head load worker, cart puller, washerman.
1. Organized sector:

• Schoolteacher
• Mechanic
• Railway ticket examiner
• College professor
• Software engineer

2. Unorganized sector:

• Street vender
• Agricultural labourer
• Cart puller
• Washerman

Question 4.
Analyze the recent trends in sectoral distribution of workforce in India.
Primary sector is the main source of employment for majority of workers in India. Secondary sector provides employment to only 16% of workforce. About 24% of workers are in service sector. More than three – fourth of the workforce in the rural India depends on agriculture and mining. About 10% of the rural workers are working in manufacturing industries, construction and other sectors.

Service sector provides employment to only about 13% of rural workers. About 60% of urban workers are in the service sector. The secondary gives employment to about 30% of the urban workforce. Women workers concentration is very high in primary sector. Men get opportunities in both secondary and services sectors.

Question 5.
Prepare a note on NREGP.
The government of India passed an Act in Parliament known as the National Rural Employment Guarantee Act 2005. As a result of this act, the employment generation programme known as National Rural Employment Guarantee Programme (NREGP) came into existence. By 2008, it has been extended to all the districts of the country.

lt promises 10Odays of guaranteed wage employment to all adult members of rural households who volunteer to do unskilled manual work. The families, which are living below poverty line, will be covered under the scheme. This scheme is one of the many measures that the government implements to generate employment for those who are in need of jobs in rural areas.

### Plus One Economics Employment-Growth, Informalisation and Related Issues Five Mark Questions and Answers

Question 1.
The following table shows Worker-Population Ratio in India during 1999-2000.

1. Analyze the table
2. Give reasons for the findings

1. It shows the different levels of participation of people in economic activities. For every 100 persons, about 40 (by rounding off 39.5) are workers in India. In urban areas, the proportion is about 34 whereas in rural India, the ratio is about 42.

2. People in rural areas have limited resources to earn a higher income and participate more in the employment market. Many do not go to schools, colleges and other training institutions. Even if some go, they discontinue in the middle to join the workforce; whereas, in urban areas, a considerable section is able to study in various educational institutions.

Urban people have a variety of employment opportunities. They look for the appropriate job to suit their qualifications and skills. In rural areas, people cannot stay at home as their economic condition may not allow them to do so.

Question 2.
Suggest the measures to be adopted to solve the problem of unemployment in India?
Measures to solve the unemployment in India are suggested as follows.

1. Investment in heavy and basic industries and consumer goods industries should be increased. They should provide more employment with the supply consumer goods.
2. Cottage and small scale industries should be developed because they provide more employment by adopting labour intensive technique.
3. Educational System should be changed. Emphasis should be given to vocational education.
4. Means of transport and communication should be developed.
5. Rapidly rising population should be checked by adopting family planning and welfare schemes,
6. Rural work programme should be developed.
7. Youth enterpreneurs should be financed for self-employment.
8. Infrastructure of the economy should be increased.

Question 3.
How far formal sector is differentiated from informal sector? Point out some of the benefits of working in the formal sector. Analyze the informalization found among the Indian workforce.
All the public sector establishments and those private sector establishments which employ 10 hired workers or more are called formal sector establishments and those who work in such establishments are formal sector workers. All other enterprises and workers working in those enterprises form the informal sector.

Thus, informal sector includes millions of farmers, agricultural labourers, owners of small enterprises and people working in those enterprises as also the self-employed who do not have any hired workers.

There are several benefits enjoyed by the workers in the formal sector. Some of them are :

• Those who are working in the formal sector enjoy social security benefits.
• They earn more than those in the informal sector.
• Developmental planning envisaged that as the economy grows, more and more workers would become formal sector workers and the proportion of workers engaged in the informal sector would dwindle.

We learn that there are about 400 million workers in the country. There are about 28 million workers in the formal sector. That is only about seven per cent (28/400 × 100). Thus, the rest 93 per cent are in the informal sector. Out of 28 million formal sector workers, only 4.8 million, that is, only 17 percent (4.8/28 × 100) are women.

In the informal sector, male workers account for69 per cent of the workforce Since the late 1970s, many developing countries, including India, started paying attention to enterprises and workers in the informal sector as employment in the formal sector is not growing.

Workers and enterprises in the informal sector do not get regular income; they do not have any protection or regulation from the government. Workers are dismissed without any compensation. Technology used in the informal sector enterprises is outdated; they also do not maintain any accounts. Workers of this sector live in slums and are squatters.

Question 4.
Discuss causes responsible for unemployment in India.
The causes responsible for unemployment in India may be discussed below.
1. Slow economic growth:
The nature of Indian economy is underdeveloped and the rate of economic growth is slow. This causes lower employment opportunities to the rising population.

2. Rapid Growth of Population:
Constant increase in population has been a great problem of India. It is one of the main causes of unemployment. Despite the completion of nine Five Year Plans, the number of unemployed has actually increased inspite of decreasing.

3. Agriculture:
A Seasonal Occupation: Agriculture is so underdeveloped in India that it largely offers seasonal employment. Most of the farmers remain idle for three to four months in a year. The volume of disguised unemployment is estimated to be nearly 15 percent of the total working population in agriculture.

4. Lack of Irrigation Facilities:
Despite the completion of Nine Five Year Plans, irrigation facilities could be provided only to 34 percent of agriculture area. For want of irrigation only one crop is grown in a year on the large part of agricultural land. Consequently, the farmers remain unemployed for quite sometime during the year.

5. Joint Family Systme:
It encourages disguised unemployment. Joint family system is more prevalent in rural areas; hence a high degree of disguised unemployment exists there.

6. Decline of Cottage and Small Industries:
The industrial development policy adopted by the Britishers adversely affected the artisans working in small and cottage industries. The goods previously produced by these industries are now being produced by large scale industries.

These artisans were, therefore, thrown out of employment. After Independence, Government of India has been taken several measures to revive and develop small scale and cottage industries, but still, these continue to be in distress.

7. Low Savings and Investment:
There is shortage of capital in India, and even the scarce capital has not been wisely invested. Bulk of the capital has been invested in large scale industries with high capital-output ratio needing more capital per unit of output.

8. Mobility of Labour:
Mobility of labour in India is very low. Owing to their attachment to the family, people generally do not move out to far off areas even when jobs are available there. Factors like diversity of language, religion and customs also contribute to low mobility. Lesser the mobility, greater the unemployment.