All questions of Employment: Growth, Informalisation and other issues for Commerce Exam

D

GDP is the final value of the goods and services produced within the geographic boundaries of a country during a specified period of time, normally a year. GDP growth rate is an important indicator of the economic performance of a country. 

Non farm enterprises are those which does not take part in agricultural activities.......or products.... so correct answer is d

Economics activity

Gross National Product

Calculation of Inflation Rate

Inflation rate is the rate at which the general level of prices for goods and services is rising, and, subsequently, purchasing power is falling. To calculate the inflation rate, the formula used is:

Inflation Rate = [(Current Year CPI - Base Year CPI) / Base Year CPI] x 100

Given Data

Here, the given data is:

- Period: 2004-2005 to 2010-2011 (7 years)
- Inflation rate: Unknown

Solution

To calculate the inflation rate, we need CPI data for both the years. However, we are not provided with the CPI data. Hence, we cannot calculate the exact inflation rate. However, we can estimate the inflation rate based on the historical trend.

According to the historical trend, the average inflation rate in India during the period 2004-2005 to 2010-2011 was around 6% per annum. Hence, the correct answer is option C, i.e., 6%.

Conclusion

The inflation rate from 2004-2005 to 2010-2011 is estimated to be around 6% per annum based on the historical trend.

Enhancing supplies

A) Workforce / Total Rural Population

Tidal energy has a high capital cost i.e., installation cost.

Horticulture crops perform a vital role in the Indian economy by generating employment, providing raw material to various food processing industries, and higher farm profitability due to higher production and export earnings from foreign exchange.

Higher In urban areas

A general rise in prices; the rate at which prices rise

Assertion (A): Casual labourers are most vulnerable in the society.
Reason (R): Casual labourers don’t have a permanent earning facility and their earning varies a lot. They can even lose their jobs with a slight dip in the economic growth.

Explanation:
The assertion states that casual labourers are the most vulnerable in society. Let's analyze the reason provided to understand why this assertion is true.

Casual labourers don’t have a permanent earning facility:
1. Casual labourers usually work on a temporary basis, without any long-term job security.
2. They are hired for short-term projects or seasonal work, which means they don't have a stable and guaranteed source of income.
3. Unlike permanent employees who have a regular salary, casual labourers are paid on an hourly or daily basis, depending on the work they do.
4. This lack of permanent earning facility makes them financially vulnerable as they cannot rely on a steady income to support themselves and their families.

Their earning varies a lot:
1. Casual labourers often face fluctuations in their income due to the nature of their work.
2. The amount of work available to them can vary greatly depending on the demand for their services.
3. During economic downturns or periods of low demand, casual labourers may struggle to find work, resulting in a significant decrease in their income.
4. This variability in earnings makes it difficult for them to plan their expenses and save for the future, increasing their vulnerability.

They can even lose their jobs with a slight dip in the economic growth:
1. Casual labourers are particularly susceptible to economic downturns and fluctuations in the market.
2. As their employment is often dependent on the availability of projects or demand for their services, they are more likely to be the first ones to lose their jobs during an economic downturn.
3. With even a slight dip in economic growth, companies may reduce their workforce or cut down on hiring casual labourers to control costs.
4. This puts casual labourers at a higher risk of unemployment and financial instability.

Conclusion:
Both the assertion and the reason are true. Casual labourers are indeed the most vulnerable in society due to the absence of a permanent earning facility, fluctuating income, and the potential for job loss with even a slight dip in economic growth. The reason provided correctly explains why casual labourers are in such a vulnerable position. Therefore, option (A) is the correct answer.

The number of people who reside in a particular locality at a particular point of time is known as Population.
Explanation:
- Population: The population refers to the total number of individuals (people) living in a specific area or locality at a given time.
- The population of an area can be determined through various methods such as census, surveys, and administrative records.
- It is an important demographic indicator that helps in understanding the size, composition, and characteristics of a specific population group.
- The population of a locality can vary over time due to factors such as birth rate, death rate, immigration, and emigration.
- Governments, policymakers, and researchers use population data to make informed decisions regarding resource allocation, urban planning, healthcare, education, and other social services.
- Understanding the population dynamics is crucial for planning and development purposes, as it helps in identifying the needs and demands of the population.
- Population data also plays a significant role in determining social and economic indicators such as population growth rate, population density, age distribution, gender ratio, and literacy rate.
- Hence, the correct answer to the given question is Population (Option B).

Explanation:

Introduction:
The power sector in India plays a crucial role in the country's economic development. It is essential for the government to address the growing demand for electricity, improve infrastructure, and ensure affordable and reliable power supply to the public.

Statement a: Government needs to invest in infrastructure to meet growing demand for electricity, India’s commercial energy supply needs to grow at about 7%.

This statement is true. As the population and economy of India continue to grow, the demand for electricity is also increasing. The government needs to invest in the development of infrastructure, such as power plants and transmission lines, to meet this growing demand. According to estimates, India's commercial energy supply needs to grow at a rate of around 7% to meet the demands of various sectors like industry, agriculture, and residential.

Statement b: There has been an increase in profits of State Electricity Boards.

This statement is not true. State Electricity Boards (SEBs) in India have been facing financial challenges for many years. Due to issues like high transmission and distribution losses, inadequate tariff hikes, and inefficiencies in operations, many SEBs have been running in losses. This has led to a financial crisis in the power sector, and the profitability of SEBs has not seen a significant increase.

Statement c: Private sector power generators are yet to play their role in a major way.

This statement is true. While the private sector has been involved in power generation in India, their contribution is still relatively small compared to the government-owned power plants. The private sector power generators are yet to play a major role in the overall power generation capacity of the country. However, the government has been actively promoting private sector participation through initiatives like competitive bidding for power projects and encouraging foreign investment.

Statement d: There is general public unrest due to high power tariffs and prolonged power cuts in different parts of the country.

This statement is true. High power tariffs and prolonged power cuts have been a cause of public unrest in different parts of India. The cost of electricity in India is relatively high compared to other countries, and frequent power cuts disrupt daily life and economic activities. The government has been working on reforms to address these issues, such as promoting renewable energy, improving transmission and distribution infrastructure, and implementing measures to reduce power theft and losses.

Conclusion:
In conclusion, the statement that is not true about the power sector in India is option 'B', which states that there has been an increase in profits of State Electricity Boards. On the contrary, many State Electricity Boards have been facing financial challenges and running in losses.

Explanation:


The statement of Assertion (A) is that Human Capital Formation gives birth to innovation, invention, and technological improvements. The statement of Reason (R) is that investment in education creates the ability to adopt newer technologies, facilitates invention and innovation since educated workforce generally adapts to modern technologies and innovation. Let's analyze both these statements in detail.

Assertion (A): Human Capital Formation gives birth to innovation, invention and technological improvements.

Explanation: Human capital formation refers to the process of enhancing the knowledge, skills, and abilities of people. It involves investments in education, training, healthcare, and other areas that help individuals to develop their potential and contribute to economic growth. When people are educated and skilled, they can think creatively and come up with new ideas that can lead to innovation, invention, and technological improvements. Therefore, the assertion that human capital formation gives birth to innovation, invention, and technological improvements is true.

Reason (R): Investment in education creates ability to adopt newer technologies, facilitates invention and innovation since educated workforce generally adapts to modern technologies and innovation.

Explanation: Education plays a crucial role in the development of human capital. It provides individuals with the knowledge and skills they need to adapt to new technologies, innovate, and invent. When people are educated, they are more likely to adopt new technologies and adapt to changing circumstances. A well-educated workforce is also more likely to come up with new ideas and innovations that can lead to economic growth. Therefore, the reason that investment in education creates the ability to adopt newer technologies, facilitates invention and innovation since educated workforce generally adapts to modern technologies and innovation is true.

Conclusion:


Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of the Assertion (A). Hence, option (a) is the correct answer.

When unemployment prevails, people don’t get income. As a result, they are not able to get necessities of life and they become poor. Unemployment gives birth to poverty. Therefore, there is a direct relationship between poverty and unemployment.

The correct answer is D. Seasonal unemployment. Let's understand why Indian agriculture ensures employment for only 7-8 months and leaves laborers unemployed for the remaining period:
Reasons for seasonal unemployment in Indian agriculture:
1. Dependence on monsoons: Indian agriculture heavily depends on monsoons for irrigation. As a result, farming activities can only take place during the monsoon season, which lasts for about 7-8 months in most parts of the country.
2. Seasonal nature of crops: Certain crops, such as rice, wheat, and pulses, have specific growing seasons. Farmers cultivate these crops during the monsoon season and harvest them once they are ready. This leads to a concentration of agricultural activities within a limited time frame.
3. Lack of irrigation facilities: Many parts of rural India lack proper irrigation facilities, making it difficult for farmers to cultivate crops throughout the year. As a result, they are restricted to the monsoon season for agricultural activities.
4. Limited employment opportunities: Due to the seasonal nature of agriculture, there is limited scope for employment in the sector throughout the year. This leads to a situation where laborers remain unemployed for the remaining period after the harvest season.
5. Lack of alternative sources of income: In rural areas, where agriculture is the primary source of livelihood, the lack of employment opportunities in agriculture during non-monsoon months leaves laborers with limited alternative sources of income. This further exacerbates the problem of seasonal unemployment.
Conclusion:
Seasonal unemployment in Indian agriculture is a significant issue that needs to be addressed. Efforts must be made to improve irrigation facilities, promote crop diversification, and create alternative employment opportunities to reduce the dependence on the monsoon season and provide year-round employment for laborers in the agricultural sector.

To analyze the given situation and determine the correct answer, let's break it down into key points:
Overall acceleration in the growth rate of GDP:
- This indicates that the economy is experiencing an increase in the production of goods and services, resulting in a higher Gross Domestic Product (GDP).
Not accompanied by a commensurate expansion in employment opportunities:
- Despite the growth in GDP, the increase in job opportunities is not proportionate or equivalent.
- It means that even though the economy is growing, the employment rate does not experience a similar level of growth.
Now, let's analyze the options:
A. Jobless growth:
- This option perfectly matches the given situation, as it describes a scenario where there is an acceleration in GDP growth without a corresponding expansion in employment opportunities.
- Jobless growth refers to a situation where economic growth occurs without a significant increase in employment.
B. Population growth:
- This option does not directly address the given situation.
- Population growth refers to an increase in the number of individuals in a particular area over time, which might not be relevant to the context of the question.
C. People growth:
- This option is similar to the previous one and does not directly relate to the situation described.
- People growth can be interpreted as an increase in the population, but it does not specifically address the mismatch between GDP growth and employment opportunities.
D. None:
- This option implies that none of the provided options is correct.
- However, based on the analysis above, option A (Jobless growth) is the most appropriate answer.
In conclusion, the correct answer to the given question is A. Jobless growth.

Infrastructure into two categories: Economic and Social. Infrastructure associated with energy, transportation and communication are included in the former category whereas those related to education, health and housing are included in the latter.

No

Human capital helps in formation of physical capital.

Uncertainty of income caused by factors likes crop failure caused by

Medical tourism is the term commonly used to describe international travel for the purpose of receiving medical care. Medical tourists may pursue medical care abroad for a variety of reasons, such as decreased cost, a recommendation from friends or family, the opportunity to combine medical care with a vacation destination, a preference for care from providers who share the traveler’s culture, or to receive a procedure or therapy not available in their country of residence. Medical tourism is a worldwide, multibillion-dollar market that continues to grow. Surveillance data indicate that millions of US residents travel internationally for medical care each year. Ongoing reports of infections and other adverse events following medical or dental procedures abroad serve as reminders that medical tourism is not without risks.

Bangalore is also known as the "Silicon Valley of India" because of its role in promoting the IT industry in India. Infosys, ISRO, Infosys, HAl, Wipro and other Indian technology organizations have their headquarters in the city.

Unemployment in Rural Areas
Rural areas often face several challenges when it comes to employment opportunities. Unemployment in such areas can be attributed to various factors, including seasonal unemployment, disguised unemployment, and industrial unemployment.

Seasonal Unemployment
Seasonal unemployment is a type of unemployment that occurs due to the seasonal nature of certain industries or agricultural activities. In rural areas, where agriculture is a primary occupation, seasonal unemployment is quite common. This type of unemployment arises when individuals are only able to find employment during specific seasons or times of the year, such as planting or harvesting seasons. For the rest of the year, they remain unemployed.

Disguised Unemployment
Disguised unemployment refers to a situation where more people are engaged in a particular activity or occupation than actually required. In rural areas, disguised unemployment is prevalent due to the overburdened agricultural sector. It occurs when there are more workers engaged in agricultural activities than necessary for optimal productivity. These additional workers do not contribute significantly to the output, and their removal from the occupation would not affect productivity. Thus, disguised unemployment essentially means that there is underutilization of labor.

Industrial Unemployment
Industrial unemployment is another type of unemployment that can be observed in rural areas. It occurs when there is a lack of industrialization or industrial development in these areas. As a result, rural residents often struggle to find employment opportunities in non-agricultural sectors. Limited access to education, skills, and training, along with inadequate infrastructure and investment, further exacerbate the problem of industrial unemployment in rural areas.

Conclusion
In conclusion, unemployment in rural areas can be attributed to various factors such as seasonal unemployment, disguised unemployment, and industrial unemployment. Seasonal unemployment arises due to the seasonal nature of certain industries or agricultural activities. Disguised unemployment occurs when there is an excess of workers engaged in a particular occupation, leading to underutilization of labor. Industrial unemployment, on the other hand, is a result of limited industrial development and lack of employment opportunities in non-agricultural sectors. To address these issues, rural areas need to focus on promoting skill development, creating employment opportunities beyond agriculture, and encouraging industrialization and infrastructure development.

Agriculture in India is mainly a seasonal occupation, however, during off seasons, it becomes difficult to find employment and stabilize farmer’s income. Thus, the Prime Minister has urged appropriately in the best interest of the farmers of the rural India.

The institutional structure of rural banking today consists of a set of multi agency institutions, which are

Potential Labour Force of India
There are several factors that determine the potential labour force of India. These factors include:
1. Those who are willing to work:
- This category includes individuals who are actively seeking employment and are willing to work.
- It encompasses both individuals who are currently unemployed and those who are employed but looking for better job opportunities.
- These individuals play a crucial role in the labour force as they are ready to contribute to the economy.
2. Those who are fit to work:
- This category includes individuals who are physically and mentally capable of performing work.
- It excludes individuals who have physical or mental disabilities that prevent them from participating in the labour force.
- This group comprises individuals who can actively contribute to the workforce and perform various jobs.
3. People in particular age group:
- The potential labour force also includes individuals who fall within the working-age population.
- This age group typically ranges from 15 to 64 years, although the exact age range may vary depending on the country's demographics and policies.
- Individuals within this age group are considered to have the potential to participate in the labour force and contribute to the economy.
4. All of these:
- The answer to the question is option D, which means that all of the above factors contribute to the potential labour force of India.
- The labour force is not limited to a single factor but encompasses those who are willing to work, fit to work, and fall within the particular age group.
In conclusion, the potential labour force of India consists of those who are willing to work, fit to work, and fall within the particular age group. All these factors contribute to the overall labour force and play a vital role in the country's economy.

A person who participates in the production process and contributes to GDP formation is referred to as a worker. As here, Meena works in a cloth store to support her husband and contribute to GDP by donating her services, therefore, she can be considered an worker.

Lesser women are found in regular salaried employment as compared to men because a larger proportion of women are engaged in the economic activities without stable contracts and steady income. The stable contracts and steady income are two features prevalent in the regular salaried employment.

The answer is b) Open unemployment. Urban areas suffer most from open unemployment, which occurs when individuals are actively searching for work, but are unable to find it. Disguised unemployment occurs when an individual is employed but is not utilizing their full potential in the job. Seasonal unemployment occurs when employment opportunities are only available at certain times of the year.

Land development bank provides long-term funds for various agriculture related projects besides development of land and business.

The correct answer is B: Informal
Explanation:
An establishment with four hired workers is considered as an informal sector establishment. Here's why:
- Formal sector: The formal sector refers to businesses or organizations that are registered, regulated, and operate within the legal framework of a country. These establishments typically have a larger number of employees and follow specific labor laws and regulations.
- Informal sector: The informal sector consists of unregistered or small-scale businesses that operate outside the legal framework. These establishments often have a limited number of employees and may not comply with labor laws or regulations. They are usually characterized by low wages, lack of social security benefits, and limited job security.
- In the given scenario, the establishment with four hired workers does not meet the criteria for a formal sector establishment as it falls below the threshold for larger businesses.
- Therefore, the establishment with four hired workers would be considered as an informal sector establishment.
To summarize, an establishment with four hired workers is classified as an informal sector establishment, as it operates outside the legal framework and does not adhere to formal labor laws and regulations.

Disguised unemployment is a situation where more people are engaged in a particular activity than required. It is a common feature of agrarian economies where there is a lack of alternative employment opportunities. The following statement is false regarding disguised unemployment:

Marginal productivity of worker is high

Explanation:

Marginal productivity refers to the additional output produced by an additional unit of input. In the case of disguised unemployment, there are more workers engaged in a particular activity than required. This means that the marginal productivity of each worker is low, as there is not enough work to be done for everyone to be fully productive.

The other three statements are true regarding disguised unemployment:

Mounting pressure of population in rural areas with no alternative employment: In rural areas where there are limited employment opportunities, the population tends to grow faster than the available jobs. As a result, there is an excess supply of labor, and some people end up being engaged in activities where their contribution is not needed.

Feature of agrarian economy: Disguised unemployment is more prevalent in agrarian economies where the majority of the population is engaged in agriculture. Due to the limited productivity of agriculture, there is often not enough work to keep everyone fully employed.

More people are engaged than required: Disguised unemployment occurs when more people are engaged in a particular activity than required. This leads to low productivity and inefficiency as each worker is not fully utilized.

In conclusion, the marginal productivity of a worker is low in disguised unemployment, and the other three statements are true.

Will employ 50% of India's workforce.
b)India will achieve full employment with every citizen above the age of 18 being employed.
c)India will become a knowledge-based economy with a highly skilled workforce.
d)India will create 100 million new jobs in the service sector by 2020.

b)India will achieve full employment with every citizen above the age of 18 being employed. (This statement is false as it is unrealistic to expect every citizen above the age of 18 to be employed, as some may choose not to work or may not be able to work due to various reasons.)

Understanding Unemployment
Unemployment refers to a situation where individuals who are willing and able to work are unable to find job opportunities. This concept is crucial in understanding the dynamics of the labor market and its impact on the economy.
Key Characteristics of Unemployment:
- Willingness to Work:
Individuals are actively seeking employment and are ready to work at the prevailing wage rate.
- Absence of Job Opportunities:
Despite their willingness, these individuals are unable to secure jobs due to various factors such as economic downturns, lack of job vacancies, or skills mismatch.
- Measurement of Unemployment:
Economists often measure unemployment rates through surveys and data collection to assess the health of the economy and labor market.
Types of Unemployment:
- Cyclical Unemployment:
Linked to the economic cycle, where job losses occur during recessions.
- Structural Unemployment:
Arises from shifts in the economy that create a mismatch between workers’ skills and job requirements.
- Frictional Unemployment:
Short-term unemployment that occurs when individuals are temporarily between jobs or entering the workforce for the first time.
Conclusion:
In summary, option 'A', unemployment, accurately describes the situation where a laborer is willing to work at the existing wage rate but cannot find employment. Understanding this concept helps policymakers develop strategies to stimulate job creation and address labor market inefficiencies.

The scheme will operate on insurance mode in convergence with PM-JAY.

The correct answer is option 'B': The number of persons usually employed or willing to be employed.

The labour force is a term commonly used in economics and refers to the total number of individuals who are either currently employed or are actively seeking employment. It includes both those who are employed and those who are unemployed but actively looking for work. Let's delve into the details to understand this concept more comprehensively.

1. Definition of labour force:
The labour force is a key economic indicator that helps to measure the number of people who are available to work and contribute to the production of goods and services in an economy. It consists of two categories: employed individuals and unemployed individuals.

2. Employed individuals:
The labour force includes individuals who are currently working and earning income through formal employment, self-employment, or part-time work. Employed individuals are considered part of the labour force because they are actively involved in economic activities and contribute to the overall productivity of the economy.

3. Unemployed individuals:
The labour force also includes individuals who are currently without a job but are actively searching for employment opportunities. These individuals are considered unemployed and are part of the labour force because they are willing and able to work. They may be actively seeking work through job applications, interviews, or other job-seeking activities.

4. Exclusion from the labour force:
Certain groups of people are not considered part of the labour force. These include individuals who are not actively seeking employment, such as full-time students, retirees, and individuals who are unable to work due to disabilities or other reasons. Additionally, individuals who have given up looking for employment due to discouragement are also excluded from the labour force.

5. Importance of measuring the labour force:
Understanding the size and composition of the labour force is crucial for policymakers, economists, and businesses. It helps in determining the overall employment situation, calculating unemployment rates, and formulating appropriate economic policies. It also aids in analyzing the demographic and socioeconomic characteristics of the labour force, such as age, gender, education levels, and employment trends.

In conclusion, the labour force refers to the total number of individuals who are either employed or actively seeking employment. It encompasses both employed individuals and those who are unemployed but actively looking for work. Measuring the labour force provides valuable insights into the employment situation and aids in policymaking and economic analysis.

Labour Force: False Statement

Introduction:

Labour force is an important concept in economics that refers to the number of people who are employed or actively seeking employment. The labour force includes individuals who are engaged in productive activities and are capable of generating income for themselves and their families.

False Statement:

The false statement regarding the labour force is option 'A', which states that it includes all members of the population.

Explanation:

The labour force does not include all members of the population. It only includes those individuals who are considered to be economically active, meaning they are either employed or seeking employment. The following points explain the components of the labour force:

- Includes those engaged in productive activities: The labour force includes individuals who are engaged in productive activities and are capable of generating income for themselves and their families. This includes both employed and unemployed individuals who are actively seeking employment.
- Excludes very young and very old people: The labour force excludes individuals who are too young or too old to work. This includes children who are not old enough to work and individuals who have reached retirement age and are no longer seeking employment.
- Excludes mentally challenged people: The labour force also excludes individuals who are mentally challenged and are unable to work. These individuals may require special care and support, and may not be capable of generating income for themselves.

Conclusion:

In conclusion, the false statement regarding the labour force is that it includes all members of the population. The labour force only includes individuals who are economically active, meaning they are either employed or seeking employment. It excludes very young and very old people, as well as mentally challenged individuals who are unable to work.

This mechanism takes into account expenditure on food and a few other items as proxy for income. It ignores many other vital factors associated with poverty; for instance, the accessibility to basic education, health care, drinking water and sanitation.

Various governments in India, from time to time for various reasons, introduced debt relief/waiver schemes. These programs are being used by governments as a quick way to get farmers out of their debt, helping to restore their investment and productivity potential, in short reducing the plight of farmers across India.

Ayushman Bharat Pradhan Mantri Jan Arogya Yojana of the Government of India is a national health insurance scheme of the state that aims to provide free access to healthcare for low income earners in the country.

Dimensions of Sustainable Development

Ayushman Bharat Yojana (PMJAY) will help these households avail the best healthcare services with insurance coverage up to INR 5 lakh for each family per year for tertiary and secondary hospitalization expenses.

Disguised unemployment refers to a situation where more people are engaged in a particular production process than actually required. In such a scenario, removing some workers would not lead to a decrease in output. Disguised unemployment is typically found in the agricultural sector, where there is a large surplus of labor.

Causes of disguised unemployment

There are several reasons why disguised unemployment can occur:

1. Lack of alternative employment opportunities: In rural areas, there may be limited job opportunities available, and hence, people may engage in agricultural work even if they are not needed.

2. Low productivity: Due to the use of outdated technology and farming techniques, the productivity of labor may be low, leading to the need for more workers than necessary.

3. Fragmentation of landholdings: In many parts of the world, land is divided into small plots, which makes it difficult to achieve economies of scale. As a result, many people work on small plots of land, even if they are not needed.

Effects of disguised unemployment

Disguised unemployment can have several negative effects:

1. Low wages: When there is an oversupply of labor, wages tend to be low, which can lead to poverty and income inequality.

2. Low productivity: Disguised unemployment can reduce the productivity of the agricultural sector, as workers may not be fully utilized.

3. Wastage of resources: When more people are engaged in a particular production process than actually required, it can lead to a wastage of resources, such as land, water, and fertilizer.

Conclusion

Disguised unemployment is a common phenomenon in many parts of the world, particularly in rural areas. It can have several negative effects on the economy, such as low wages, low productivity, and wastage of resources. Policymakers need to address this issue by creating alternative job opportunities and improving the productivity of the agricultural sector.