Worksheet Solutions: Employment: Growth, Informalisation - 2 | Economics Class 12 - Commerce PDF Download

Section 1: Fill in the Blanks

Q1: Self-employed individuals own and operate their own ______ to earn a living.
Ans: business
Self-employed individuals are those who run their own business or enterprise, taking full responsibility for its operation, profits, and losses. They may be sole proprietors, freelancers, consultants, or small business owners. In essence, they independently manage and operate their businesses to generate income and sustain their livelihood.

Q2: Casual workers are not employed on a ______ or permanent basis.
Ans: regular
Casual workers are individuals who are not hired on a regular or permanent basis by an employer. They typically have irregular working hours, and their employment is often temporary or occasional. Unlike permanent employees, casual workers may not have access to certain benefits like paid leave, health insurance, or job security.

Q3: The primary sector includes activities such as agriculture, forestry, logging, fishing, mining, and ______.
Ans: quarrying
The primary sector of the economy involves activities that directly extract natural resources from the environment. This includes agriculture (farming), forestry (logging and timber production), fishing, mining (extraction of minerals and ores), and quarrying (extraction of stone, sand, and other minerals from quarries). These activities are fundamental as they provide raw materials for various industries.

Q4: Consumption activity is included in the calculation of ______.
Ans: Gross Domestic Product (GDP)
Consumption activity refers to the spending by households on goods and services. In the calculation of Gross Domestic Product (GDP), consumption is a significant component and is included as one of the key indicators of economic activity. It represents the total value of all goods and services consumed within a specific period within a country's borders, contributing to the overall assessment of an economy's performance.

Q5: ______ unemployment occurs when new machinery and labor-saving technologies replace workers.
Ans: Technological
Technological unemployment is a type of unemployment that occurs when advancements in technology, automation, and machinery lead to a reduction in the demand for labor. When businesses implement new technologies that can perform tasks more efficiently and with fewer human workers, some individuals may lose their jobs, resulting in technological unemployment.

Q6: The National Rural Employment Guarantee Act, 2005 aims to provide 100 days of guaranteed paid employment to all rural households willing to perform ______ labor.
Ans: unskilled manual
The National Rural Employment Guarantee Act (NREGA), enacted in 2005 in India, aims to provide a minimum of 100 days of guaranteed paid employment per year to rural households. The work provided under NREGA is typically unskilled manual labor, which can include various activities like road construction, water conservation, afforestation, and other public works projects.

Q7: Seasonal employment occurs when a large number of people are unable to find work during a specific ______.
Ans: season
Seasonal employment refers to a situation where a significant number of individuals face unemployment or reduced employment opportunities during specific times of the year known as "seasons." Certain industries, such as agriculture, tourism, and retail, often experience fluctuations in demand and workforce requirements based on seasonal variations, leading to temporary employment during peak seasons and unemployment during off-seasons.

Q8: The ______ sector involves activities related to manufacturing, construction, and the provision of electricity, gas, and water.
Ans: secondary
The secondary sector of the economy includes activities that involve the processing and transformation of raw materials into finished products. It comprises manufacturing industries, construction, and utilities such as electricity, gas, and water supply. In this sector, goods are produced and processed, contributing to the overall economic development of a country.

Q9 ______ unemployment occurs when the marginal physical productivity of labor is zero or negative.
Ans: Disguised
Disguised unemployment refers to a situation where individuals are employed in a manner that does not fully utilize their skills and capabilities, resulting in an excess of labor in a particular activity. In disguised unemployment, the marginal physical productivity of labor is close to zero or even negative, indicating that the additional labor does not significantly contribute to the overall output or productivity.

Q10: Inadequate employment planning is one of the causes of ______ in India.
Ans: unemployment
Inadequate employment planning refers to a situation where the planning and strategies related to job creation and workforce management fall short of meeting the demand for employment opportunities within a country. In India, as in many other countries, insufficient or ineffective planning in areas such as education, skill development, industrial growth, and economic policies can contribute to various forms of unemployment, including structural, cyclical, and frictional unemployment.

Section 2: Assertion and Reason

Q1: Assertion: The primary sector includes activities such as agriculture and mining.
Reason: These activities involve the extraction or cultivation of raw materials.
(a) Both assertion and reason are correct, and the reason is the correct explanation of the assertion.
(b) Both assertion and reason are correct, but the reason is not the correct explanation of the assertion.
(c) Assertion is correct, but the reason is incorrect.
(d) Assertion is incorrect.
Ans: (a) Both assertion and reason are correct, and the reason is the correct explanation of the assertion.

Q2: Assertion: Technological unemployment occurs due to the replacement of workers by machines.
Reason: Technological advancements lead to increased demand for skilled workers.
(a) Both assertion and reason are correct, and the reason is the correct explanation of the assertion.
(b) Both assertion and reason are correct, but the reason is not the correct explanation of the assertion.
(c) Assertion is correct, but the reason is incorrect.
(d) Assertion is incorrect.
Ans: (b) Both assertion and reason are correct, but the reason is not the correct explanation of the assertion.

Q3: Assertion: Informalization of employment leads to a more flexible work environment.
Reason: Many individuals opt for informal jobs due to better work-life balance.
(a) Both assertion and reason are correct, and the reason is the correct explanation of the assertion.
(b) Both assertion and reason are correct, but the reason is not the correct explanation of the assertion.
(c) Assertion is correct, but the reason is incorrect.
(d) Assertion is incorrect.
Ans: (c) Assertion is correct, but the reason is incorrect.

Q4: Assertion: The rate of job creation is lower than the rate of economic growth in a situation of jobless growth.
Reason: Jobless growth occurs due to inadequate investment in human capital.
(a) Both assertion and reason are correct, and the reason is the correct explanation of the assertion.
(b) Both assertion and reason are correct, but the reason is not the correct explanation of the assertion.
(c) Assertion is correct, but the reason is incorrect.
(d) Assertion is incorrect.
Ans: (a) Both assertion and reason are correct, and the reason is the correct explanation of the assertion.

Q5: Assertion: Casualization of employment leads to a decrease in job security for workers.
Reason: Casual workers are typically employed on a temporary or irregular basis.
(a) Both assertion and reason are correct, and the reason is the correct explanation of the assertion.
(b) Both assertion and reason are correct, but the reason is not the correct explanation of the assertion.
(c) Assertion is correct, but the reason is incorrect.
(d) Assertion is incorrect.
Ans: (a) Both assertion and reason are correct, and the reason is the correct explanation of the assertion.

Section 3: Very Short Answers 

Q1: Define self-employed workers.
Ans: Individuals who own and operate their own business to earn a living.

Q2: What does the tertiary sector comprise?
Ans: Trade, transportation, storage, and service-related activities.

Q3: Define disguised employment.
Ans: Disguised employment occurs when the marginal physical productivity of labor is zero or negative.

Q4: What is the unemployment rate?
Ans: The proportion of the labor force that is jobless, expressed as a percentage.

Q5: What is industrial unemployment?
Ans: Industrial unemployment includes illiterate people wanting to work in industries, mining, transportation, trading, and construction.

Q6: What is the main objective of The National Rural Employment Guarantee Act, 2005?
Ans: To provide 100 days of guaranteed paid employment to rural households willing to perform unskilled manual labor.

Q7: Define consumption activity.
Ans: The use of products and services by a household, included in the calculation of Gross Domestic Product (GDP).

Q8: Define technological unemployment.
Ans: Technological unemployment occurs when new machinery and labor-saving technologies replace workers.

Q9: What does the primary sector include?
Ans: Activities such as agriculture, forestry, logging, fishing, mining, and quarrying.

Q10: Define casual workers.
Ans: Casual workers are not employed on a regular or permanent basis and are typically paid on an hourly or daily basis.

Section 4: Short Answers

Q1: Explain the concept of casualization of employment and its impact on job security.
Ans: Casualization of employment refers to the increase in the proportion of temporary workers over time. Due to limited opportunities in the organized sector, businesses often hire casual laborers. This trend decreases job security for workers since they are not employed on a regular or permanent basis. The lack of social security benefits and flexible working conditions further contribute to decreased job stability.

Q2: Describe the types of workers based on employment status.
Ans: Workers can be categorized into self-employed and hired workers. Self-employed individuals own and operate their own businesses. Hired workers can be further classified into casual workers, who are not employed on a regular basis and are paid hourly or daily, and regular workers (salaried), who are employed by an organization on a fixed salary.

Q3: Discuss the causes of unemployment in India.
Ans: Unemployment in India is attributed to various factors. The slow pace of economic growth fails to generate sufficient job opportunities for the growing population. The rapid population growth exacerbates the problem. Additionally, inadequate employment planning and over-reliance on foreign technology contribute to the unemployment issue.

Q4: Explain the types of unemployment based on geographic location.
Ans: Unemployment can be classified into rural and urban types. Rural unemployment includes seasonal employment and disguised employment. Urban unemployment comprises industrial unemployment, educated unemployment, and technological unemployment.

Q5: Describe the three main types of economic activities.
Ans: Economic activities include production, consumption, and distribution. Production involves creating goods and services to generate income. Consumption is the use of products and services by households and is used to calculate Gross Domestic Product (GDP). Distribution involves the construction, operation, and maintenance of various infrastructure.

Q6: Discuss the significance of the tertiary sector in the economy.
Ans: The tertiary sector plays a vital role in the economy as it encompasses trade, transportation, storage, and service-related activities. It contributes significantly to employment and GDP. The growth of the tertiary sector indicates economic development and a shift from agrarian and manufacturing activities to service-based industries.

Q7: Explain jobless growth and its implications.
Ans: Jobless growth occurs when economic growth surpasses job creation rates, leading to rising unemployment. This situation can cause social and economic challenges, including increased poverty and inequality. Governments must focus on policies that promote inclusive growth to address this issue effectively.

Q8: Discuss the role of the government in employment generation in India.
Ans: The Indian government has taken initiatives to address unemployment through acts like The National Rural Employment Guarantee Act, 2005, aiming to provide guaranteed paid employment in rural areas. Government policies and plans play a crucial role in creating job opportunities and fostering economic development.

Section 5: Long Answers

Q1: Discuss the shift in the composition of the Indian workforce and its implications.
Ans:

• Shift in Composition: In India, there has been a notable shift in the composition of the workforce, with a rise in job opportunities in the service sector. The service sector has experienced substantial growth due to technological advancements, enabling small-scale enterprises and specialist workers to compete with multinational corporations. Outsourcing has become prevalent, leading to a transformation in the traditional idea of a modern factory or office. Many individuals now opt for remote work, contributing to the informalization of the workforce.
• Implications: Despite economic growth, job opportunities have not grown at the same pace. The rise of the service sector has altered employment dynamics, making the workforce more informal and reducing social security measures. While the shift presents new job prospects, it also poses challenges related to job stability, income security, and workers' rights.

Q2: Explain the various types of workers and their role in the economy.
Ans:

• Self-Employed: Self-employed individuals own and operate their own businesses, contributing to economic growth and employment generation. They are entrepreneurs who manage their enterprises and often play a crucial role in driving innovation and economic development.
• Hired Workers: Hired workers, including casual and regular workers, form a significant part of the workforce. Casual workers provide flexibility to employers, especially in industries with fluctuating demands, while regular workers ensure stability and continuity in operations. Both types contribute to production and service delivery, vital for economic progress.

Q3: Discuss the impact of technological advancements on employment and job types.
Ans:

• Technological Advancements: Technology has revolutionized various industries, leading to increased automation, artificial intelligence, and robotics. These advancements have improved efficiency, productivity, and accuracy in operations, allowing for cost savings and enhanced competitiveness for businesses.
• Impact on Employment: While technology has created new job opportunities in the tech sector, it has also led to job displacement in traditional sectors, causing technological unemployment. Jobs that are repetitive or easily automated face a higher risk. However, technology has also created demand for skilled workers to develop, manage, and maintain the new technologies.

Q4: Discuss the strategies to address unemployment in India.
Ans:

• Economic Diversification: Diversifying the economy by promoting various sectors, including agriculture, manufacturing, and services, can create a broad spectrum of job opportunities. Special emphasis on sectors with high potential for growth is crucial.
• Skill Development: Investing in skill development and vocational training programs is vital to equip the workforce with the necessary skills for modern job markets. Aligning training programs with industry needs ensures a skilled workforce.
• Encouraging Entrepreneurship: Encouraging and supporting entrepreneurship through favorable policies, access to capital, and mentorship programs can drive job creation and economic growth.
• Government Interventions: Governments should formulate and implement policies focused on job creation, employment planning, and supporting key sectors. Initiatives like The National Rural Employment Guarantee Act, 2005, demonstrate the government's commitment to providing employment opportunities and enhancing rural livelihoods.