Indian Economic Development Chapter 6 Employment Growth Informalisation and Other Issues VBQs Set 01

EXERCISE

1. Objective Type Questions (Remembering & Understanding based Questions)

A. Multiple Choice Questions

Choose the correct option:

Question. Number of persons unemployed = Labour Force -
(a) Supply of labour
(b) Workforce
(c) Total population
(d) Participation Rate
Answer: (b) Workforce

Question. 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 the options
Answer: (c) both (a) and (b)

Question. Unemployment leads to which of the following?
(a) Loss of manpower
(b) Loss of output
(c) Decline in capital formation
(d) All of the options
Answer: (d) All of the options

Question. Which type of unemployment is found in agricultural sector?
(a) Disguised unemployment
(b) Structural unemployment
(c) Industrial unemployment
(d) Educated unemployment
Answer: (a) Disguised unemployment

Question. Unemployment arising from economic fluctuations is called:
(a) frictional unemployment
(b) disguised unemployment
(c) cyclical unemployment
(d) urban unemployment
Answer: (c) cyclical unemployment

Question. The number of people who are able to work and willing to work at the existing wage rate is known as:
(a) labour force
(b) workforce
(c) labour supply
(d) participation rate
Answer: (a) labour force

Question. Percentage of adult population participating in production activity is called:
(a) labour force
(b) workforce
(c) labour supply
(d) participation rate
Answer: (d) participation rate

Question. The number of workers actually working or willing to work is called:
(a) workforce
(b) labour force
(c) labour supply
(d) none of the options
Answer: (b) labour force

Question. When the number of persons willing to work (at the existing wage rate) increases or decreases, it changes the size of:
(a) workforce
(b) labour force
(c) labour supply
(d) all of the options
Answer: (c) labour supply

Question. ________ 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 the options
Answer: (a) Workforce

Question. The percentage of female workforce is lower in urban areas because:
(a) female education in India is still a far cry
(b) females in urban areas does not prefer to take jobs
(c) job work for women is governed by family decisions
(d) both (a) and (c)
Answer: (d) both (a) and (c)

Question. 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 to support the family, owing to low family income in rural areas
(c) high productivity requirements in the available jobs in rural areas
(d) both (a) and (b)
Answer: (d) both (a) and (b)

Question. 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 the options
Answer: (c) both (a) and (b)

B. Fill in the Blanks

Choose appropriate word and fill in the blank:

Question. Supply of labour corresponding to different wage rates is called ________. (labour supply/labour force)
Answer: labour supply

Question. ________ workers are on the permanent pay-roll of their employers. (Casual/Regular)
Answer: Regular

Question. ________ refers to the number of workers who are actually working or willing to work. (Workforce/Labour force)
Answer: Labour force

Question. The bulk of our workforce is ________. (rural-based/urban-based)
Answer: rural-based

Question. Rate of participation of people is higher in ________ areas. (urban/rural)
Answer: rural

Question. There is ________ between workforce and labour force. (no difference/difference)
Answer: difference

Question. ________ of workforce refers to a situation where people tend to find employment more in unorganised sector of the economy. (Casualisation/Informalisation)
Answer: Informalisation

Question. Marginal productivity of the workers is zero in case of ________. (underemployment/disguised unemployment)
Answer: disguised unemployment

Question. ________ sector is the main source of employment for majority of workers in India. (Primary/Tertiary)
Answer: Primary

Question. ________ unemployment occurs due to imperfections in the mobility of factors across different occupations. (Cyclical/Frictional)
Answer: Frictional

C. True or False

State whether the following statements are True or False:

Question. Hired workers are those who work for others and are not self-employed.
Answer: True

Question. Workforce refers to that part of the labour force which is actually employed.
Answer: True

Question. Number of Unemployed Persons = Workforce - Labour force.
Answer: False

Question. The percentage of female workforce is lower in rural areas.
Answer: False

Question. Low level of education along with poverty is the principal reason why women look for sustainable jobs at early age in rural areas.
Answer: True

Question. Secondary sector is taking a lead over tertiary sector as a source of employment in urban areas.
Answer: False

Question. High priority for education implies low priority for jobs at an early age.
Answer: True

Question. Formal sector workers are highly vulnerable to uncertainties of the market.
Answer: False

Question. Education system in India is not job-oriented.
Answer: True

Question. According to National Sample Survey, a person is categorised as 'extremely underemployed' if he works only upto 28 hours a week.
Answer: True

D. Matching/Chronological

Question. From the set of statements given in Column I and Column II, choose the correct pair of statements:
Column I:
(a) Regular workers
(b) Low capital formation
(c) Formal workers
(d) Structural unemployment
Column II:
(i) Daily wagers
(ii) Cause of unemployment in India
(iii) Can form trade unions
(iv) Only found in urban areas
Answer: (c) Formal workers — (iii) Can form trade unions

Question. Identify the correct sequence of alternatives given in Column II by matching them with respective items in Column I:
Column I:
(a) Hired worker
(b) Participation rate
(c) Class struggle
(d) Jobless growth
Column II:
(i) Social consequence of unemployment
(ii) Leads to chronic unemployment
(iii) Teacher working in a school
(iv) \( \frac{\text{Total Workforce}}{\text{Total Population}} \times 100 \)
Answer: (a)—(iii), (b)—(iv), (c)—(i), (d)—(ii)

E. 'Very Short Answer' Objective Type Questions

Question. What is production activity?
Answer: Production activity refers to the process of producing goods and services.

Question. Define disguised unemployment.
Answer: Disguised unemployment is a situation wherein the number of workers engaged in a job is much more than actually required to accomplish it.

Question. What is meant by underemployment?
Answer: Underemployment is a situation in which a worker does not get a full time job.

Question. How is rural unemployment classified in India?
Answer: Rural unemployment in India is classified as: (i) Disguised, and (ii) Seasonal.

Question. What do you mean by structural unemployment?
Answer: Structural unemployment is that unemployment which occurs due to structural changes in the economy.

Question. What do you mean by seasonal unemployment?
Answer: Seasonal unemployment is a periodic unemployment created by seasonal variations in a particular sector, particularly agriculture.

Question. Define occupational structure.
Answer: Distribution of workforce across primary, secondary and tertiary sectors is called occupational distribution.

Question. What is casualisation of workforce?
Answer: Casualisation of workforce refers to a situation when the percentage of casually-hired workers in the total workforce tends to rise over time.

Question. What is informalisation of workforce?
Answer: Informalisation of workforce refers to a situation where percentage of workforce in the formal sector tends to decline and that in the informal sector tends to rise.

Question. What is jobless growth?
Answer: Jobless growth is 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. So that unemployment stays as a serious problem, even when there is a rise in GDP.