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Consider the following statements with reference to Employment elasticity:
It is a measure of the percentage change in employment with a change in the inflation rate of an economy.
  • The higher level of employment elasticity in an economy is an indicator of more labor-intensive growth.
  • It has steadily increased in India in the past two decades.
    Which of the statements given above is/are correct?
    • a)
      1 and 2 only
    • b)
      2 only
    • c)
      2 and 3 only
    • d)
      1, 2 and 3
    Correct answer is option 'B'. Can you explain this answer?
    Most Upvoted Answer
    Consider the following statements with reference to Employment elasti...
    Statement 1: Employment elasticity is a measure of the percentage change in employment with a change in the inflation rate of an economy.

    This statement is incorrect. Employment elasticity is not directly related to the inflation rate of an economy. Employment elasticity measures the responsiveness of employment to changes in economic growth or output. It is calculated by dividing the percentage change in employment by the percentage change in output or GDP. It provides an indication of how labor-intensive the growth of an economy is.

    Statement 2: The higher level of employment elasticity in an economy is an indicator of more labor-intensive growth.

    This statement is correct. Employment elasticity reflects the ability of an economy to generate employment opportunities as it grows. A higher level of employment elasticity indicates that a larger proportion of the population is employed in the production of goods and services. This implies a more labor-intensive growth pattern, where increased economic output leads to a relatively larger increase in employment.

    Statement 3: It has steadily increased in India in the past two decades.

    This statement is incorrect. Employment elasticity in India has not steadily increased in the past two decades. In fact, it has been declining over this period. According to data from the Periodic Labour Force Survey (PLFS), the employment elasticity of India's economy declined from 0.44 in the period 2004-05 to 2011-12 to 0.01 in the period 2011-12 to 2017-18. This indicates a significant deceleration in employment generation relative to economic growth.

    The decline in employment elasticity in India can be attributed to various factors such as technological advancements, increased automation, and a shift towards capital-intensive industries. These factors have led to a situation where economic growth is not translating into commensurate employment generation.

    In conclusion, statement 1 is incorrect as employment elasticity is not related to the inflation rate. Statement 2 is correct as a higher level of employment elasticity indicates more labor-intensive growth. Statement 3 is incorrect as employment elasticity in India has declined rather than steadily increasing in the past two decades. Therefore, the correct answer is option B, i.e., 2 only.
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    Consider the following statements with reference to Employment elasticity: It is a measure of the percentage change in employment with a change in the inflation rate of an economy. The higher level of employment elasticity in an economy is an indicator of more labor-intensive growth. It has steadily increased in India in the past two decades. Which of the statements given above is/are correct?a)1 and 2 onlyb)2 onlyc)2 and 3 onlyd)1, 2 and 3Correct answer is option 'B'. Can you explain this answer?
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    Consider the following statements with reference to Employment elasticity: It is a measure of the percentage change in employment with a change in the inflation rate of an economy. The higher level of employment elasticity in an economy is an indicator of more labor-intensive growth. It has steadily increased in India in the past two decades. Which of the statements given above is/are correct?a)1 and 2 onlyb)2 onlyc)2 and 3 onlyd)1, 2 and 3Correct answer is option 'B'. Can you explain this answer? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about Consider the following statements with reference to Employment elasticity: It is a measure of the percentage change in employment with a change in the inflation rate of an economy. The higher level of employment elasticity in an economy is an indicator of more labor-intensive growth. It has steadily increased in India in the past two decades. Which of the statements given above is/are correct?a)1 and 2 onlyb)2 onlyc)2 and 3 onlyd)1, 2 and 3Correct answer is option 'B'. Can you explain this answer? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Consider the following statements with reference to Employment elasticity: It is a measure of the percentage change in employment with a change in the inflation rate of an economy. The higher level of employment elasticity in an economy is an indicator of more labor-intensive growth. It has steadily increased in India in the past two decades. Which of the statements given above is/are correct?a)1 and 2 onlyb)2 onlyc)2 and 3 onlyd)1, 2 and 3Correct answer is option 'B'. Can you explain this answer?.
    Solutions for Consider the following statements with reference to Employment elasticity: It is a measure of the percentage change in employment with a change in the inflation rate of an economy. The higher level of employment elasticity in an economy is an indicator of more labor-intensive growth. It has steadily increased in India in the past two decades. Which of the statements given above is/are correct?a)1 and 2 onlyb)2 onlyc)2 and 3 onlyd)1, 2 and 3Correct answer is option 'B'. Can you explain this answer? in English & in Hindi are available as part of our courses for UPSC. Download more important topics, notes, lectures and mock test series for UPSC Exam by signing up for free.
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