Indian Economic Development

NCERT Class 11 Economics Chapter 6 Employment Growth Informalisation and Other Issues Important Questions

Employment is one of the most important chapters in NCERT Class 11 Economics because it explains workforce participation, unemployment, informalisation, employment growth and government employment policies in India. The chapter also discusses worker-population ratio, self-employment, casualisation of workforce, jobless growth and employment generation programmes.

The following important questions and answers are fully based on NCERT Class 11 Economics Chapter 6 and are highly useful for school examinations, CUET, UPSC, SSC, PSC, Railway and other competitive exams.

Multiple Choice Questions (MCQs)

1. Economic activities are those activities which:

A. Increase entertainment

B. Contribute to Gross National Product

C. Are done only in factories

D. Are performed only in urban areas

Correct Answer: B

Page Reference: 94

2. Workers include:

A. Only salaried employees

B. Only factory labourers

C. All persons engaged in economic activities

D. Only government employees

Correct Answer: C

Page Reference: 94

3. Which indicator is used to analyse employment situation in a country?

A. Literacy rate

B. Birth rate

C. Worker-population ratio

D. Inflation rate

Correct Answer: C

Page Reference: 95

4. Worker-population ratio means:

A. Ratio of workers to total firms

B. Ratio of workers to population

C. Ratio of employers to workers

D. Ratio of farmers to workers

Correct Answer: B

Page Reference: 95

5. According to the chapter, for every 100 persons in India, about how many are workers?

A. 25

B. 31

C. 41

D. 58

Correct Answer: C

Page Reference: 95

6. Which category forms the majority of India’s workforce?

A. Women

B. Men

C. Children

D. Elderly

Correct Answer: B

Page Reference: 95

7. Women workers account for approximately what share of rural workforce?

A. One-half

B. One-third

C. One-fourth

D. One-fifth

Correct Answer: C

Page Reference: 95

8. Workers who own and operate an enterprise are called:

A. Casual labourers

B. Regular salaried employees

C. Self-employed

D. Contract workers

Correct Answer: C

Page Reference: 97

9. Casual wage labourers account for approximately what share of India’s workforce?

A. 10%

B. 20%

C. 40%

D. 60%

Correct Answer: B

Page Reference: 97

10. Workers engaged regularly and paid wages are called:

A. Seasonal workers

B. Self-employed workers

C. Regular salaried employees

D. Marginal workers

Correct Answer: C

Page Reference: 97

11. Which sector is the major source of employment in India?

A. Service sector

B. Manufacturing sector

C. Primary sector

D. Banking sector

Correct Answer: C

Page Reference: 99

12. The primary sector mainly includes:

A. Banking and insurance

B. Agriculture and mining

C. Trade and transport

D. Construction and electricity

Correct Answer: B

Page Reference: 99

13. Which sector employs about 61% of urban workers?

A. Primary sector

B. Secondary sector

C. Service sector

D. Agricultural sector

Correct Answer: C

Page Reference: 100

14. Jobless growth refers to:

A. Growth without employment generation

B. Growth in agriculture

C. Decline in GDP

D. Increase in population

Correct Answer: A

Page Reference: 101

15. Casualisation of workforce means:

A. Rise in permanent jobs

B. Shift towards casual wage work

C. Increase in industrialisation

D. Decrease in labour force

Correct Answer: B

Page Reference: 102

16. Workers in enterprises employing 10 or more hired workers belong to:

A. Informal sector

B. Organised sector

C. Seasonal sector

D. Agricultural sector

Correct Answer: B

Page Reference: 103

17. Informal sector workers generally:

A. Receive social security benefits

B. Have highly secure jobs

C. Lack social security protection

D. Work only in cities

Correct Answer: C

Page Reference: 105

18. Approximately what percentage of workers were in the informal sector in 2019-20?

A. 11%

B. 25%

C. 50%

D. 89%

Correct Answer: D

Page Reference: 104

19. Open unemployment refers to:

A. Hidden unemployment

B. Seasonal work

C. Situation where people are willing to work but do not get jobs

D. Employment in offices

Correct Answer: C

Page Reference: 107

20. Disguised unemployment is mainly found in:

A. IT sector

B. Urban banking

C. Agriculture sector

D. Mining

Correct Answer: C

Page Reference: 107

21. Seasonal unemployment occurs because:

A. Factories close permanently

B. Agriculture provides work only during some seasons

C. Workers refuse to work

D. Services sector declines

Correct Answer: B

Page Reference: 107-108

22. MGNREGA guarantees employment for:

A. 50 days

B. 75 days

C. 100 days

D. 365 days

Correct Answer: C

Page Reference: 108

23. Which employment generation is created when government enterprises increase output and private firms also expand?

A. Seasonal employment

B. Indirect employment generation

C. Self-employment

D. Casual labour

Correct Answer: B

Page Reference: 108-109

24. Outsourcing means:

A. Government ownership of industries

B. Closing small enterprises

C. Delegating work to smaller firms or individuals

D. Permanent employment generation

Correct Answer: C

Page Reference: 109

25. Informalisation of workforce means:

A. Increase in secure formal jobs

B. Growth of informal employment

C. Elimination of labour laws

D. Growth of agriculture only

Correct Answer: B

Page Reference: 103-105

26. Which sector witnessed rapid growth in employment opportunities after reforms?

A. Agriculture

B. Service sector

C. Mining

D. Forestry

Correct Answer: B

Page Reference: 109

27. The majority of workers in India are:

A. Casual labourers

B. Regular employees

C. Self-employed

D. Government employees

Correct Answer: C

Page Reference: 97, 102

28. Which organisation defines unemployment data in India?

A. RBI

B. SEBI

C. National Statistical Office

D. NABARD

Correct Answer: C

Page Reference: 107

29. Which among the following is a formal sector worker?

A. Rickshaw puller

B. Cycle repair worker

C. Government nurse

D. Street vendor

Correct Answer: C

Page Reference: 103-106

30. The service sector includes:

A. Agriculture

B. Mining

C. Trade and transport

D. Forestry

Correct Answer: C

Page Reference: 99

31. Which term refers to workers temporarily without work due to seasonal conditions?

A. Open unemployment

B. Seasonal unemployment

C. Structural unemployment

D. Technical unemployment

Correct Answer: B

Page Reference: 107-108

32. Women workers are highly concentrated in:

A. Primary sector

B. IT sector

C. Banking sector

D. Transport sector

Correct Answer: A

Page Reference: 100

33. Which form of employment is considered most vulnerable?

A. Self-employment

B. Casual wage labour

C. Government service

D. Permanent salaried work

Correct Answer: B

Page Reference: 97-98

34. Which of the following is an example of indirect employment generation?

A. Hiring teachers in schools

B. Government construction work increasing demand for cement

C. Employing clerks directly

D. Recruitment in railways

Correct Answer: B

Page Reference: 108-109

35. Employment exchanges mainly help unemployed persons to:

A. Export goods

B. Register for vacancies

C. Open industries

D. Collect pensions

Correct Answer: B

Page Reference: 106-107

One-Word / Very Short Answer Questions

1. What are activities contributing to GNP called?

Answer: Economic activities

Page Reference: 94

2. What is the ratio of workers to total population called?

Answer: Worker-population ratio

Page Reference: 95

3. Who are workers owning their own enterprises called?

Answer: Self-employed

Page Reference: 97

4. Which sector is the major source of employment in India?

Answer: Primary sector

Page Reference: 99

5. Which sector includes trade and transport?

Answer: Service sector

Page Reference: 99

6. What is growth without employment generation called?

Answer: Jobless growth

Page Reference: 101

7. What is movement towards casual wage employment called?

Answer: Casualisation

Page Reference: 102

8. What are organised sector workers also called?

Answer: Formal sector workers

Page Reference: 103

9. Which sector lacks social security benefits?

Answer: Informal sector

Page Reference: 105

10. Which unemployment is hidden in agriculture?

Answer: Disguised unemployment

Page Reference: 107

11. Which unemployment occurs during certain seasons?

Answer: Seasonal unemployment

Page Reference: 108

12. Expand MGNREGA.

Answer: Mahatma Gandhi National Rural Employment Guarantee Act

Page Reference: 108

13. How many days of wage employment are guaranteed under MGNREGA?

Answer: 100 days

Page Reference: 108

14. Which office collects employment data in India?

Answer: National Statistical Office

Page Reference: 107

15. Which sector has rapidly expanded in recent decades?

Answer: Service sector

Page Reference: 109

16. What is delegation of work to smaller units called?

Answer: Outsourcing

Page Reference: 109

17. Which sector includes agriculture and mining?

Answer: Primary sector

Page Reference: 99

18. Which workers receive regular salaries?

Answer: Regular salaried employees

Page Reference: 97

19. Which category forms the majority of Indian workforce?

Answer: Self-employed workers

Page Reference: 97

20. Which sector employs the majority of urban workers?

Answer: Service sector

Page Reference: 100

21. What kind of workers are construction workers generally classified as?

Answer: Casual wage labourers

Page Reference: 97

22. Which unemployment occurs when more people work than required?

Answer: Disguised unemployment

Page Reference: 107

23. Which sector includes millions of farmers and small enterprises?

Answer: Informal sector

Page Reference: 103

24. Which sector provides social security benefits?

Answer: Formal sector

Page Reference: 104

25. Which phenomenon increased after economic reforms?

Answer: Informalisation

Page Reference: 103-105

Assertion and Reason Questions

Question 1

Assertion (A): All people engaged in economic activities are workers.

Reason (R): Economic activities contribute to Gross National Product.

Options:

A. Both A and R are true and R is the correct explanation

B. Both A and R are true but R is not the correct explanation

C. A is true but R is false

D. A is false but R is true

Correct Option: A

Page Reference: 94

Question 2

Assertion (A): Worker-population ratio helps analyse employment conditions.

Reason (R): It shows the proportion of population engaged in economic activities.

Correct Option: A

Page Reference: 95

Question 3

Assertion (A): Women participation in urban employment is lower than men.

Reason (R): Many household activities performed by women are not recognised as productive work.

Correct Option: A

Page Reference: 95-96

Question 4

Assertion (A): Self-employment is the major source of livelihood in India.

Reason (R): Many rural households own small plots of land and cultivate independently.

Correct Option: A

Page Reference: 97-98

Question 5

Assertion (A): Casual wage labourers are highly vulnerable workers.

Reason (R): They lack employment security and stable income.

Correct Option: A

Page Reference: 97-98

Question 6

Assertion (A): The service sector provides the highest employment in urban areas.

Reason (R): Urban economies are dominated by trade, transport and services.

Correct Option: A

Page Reference: 99-100

Question 7

Assertion (A): India experienced jobless growth during some periods.

Reason (R): GDP growth was higher than employment growth.

Correct Option: A

Page Reference: 100-101

Question 8

Assertion (A): Casualisation increases worker vulnerability.

Reason (R): Casual workers generally do not enjoy social security benefits.

Correct Option: A

Page Reference: 102

Question 9

Assertion (A): Formal sector workers enjoy better protection.

Reason (R): Labour laws protect workers in organised establishments.

Correct Option: A

Page Reference: 103

Question 10

Assertion (A): Informal sector workers generally have unstable incomes.

Reason (R): Informal enterprises lack government protection and regulation.

Correct Option: A

Page Reference: 104-105

Question 11

Assertion (A): Disguised unemployment is common in Indian agriculture.

Reason (R): More workers are engaged than actually required.

Correct Option: A

Page Reference: 107

Question 12

Assertion (A): Seasonal unemployment is common in villages.

Reason (R): Agricultural work is available only during specific seasons.

Correct Option: A

Page Reference: 107-108

Question 13

Assertion (A): Government generates employment directly and indirectly.

Reason (R): Public enterprises create output and stimulate private sector activity.

Correct Option: A

Page Reference: 108-109

Question 14

Assertion (A): Outsourcing has changed the traditional concept of workplace.

Reason (R): Work can now be delegated to small firms and home-based workers.

Correct Option: A

Page Reference: 109

Question 15

Assertion (A): Most new jobs after reforms emerged in the informal sector.

Reason (R): Informal sector employment expanded rapidly in recent decades.

Correct Option: A

Page Reference: 109-110

Important Exam-Oriented Concept Questions

  1. Define worker and explain the meaning of economic activities.
    Page Reference: 94
  2. Explain worker-population ratio and its significance.
    Page Reference: 95
  3. Discuss the participation of women in employment in India.
    Page Reference: 95-96
  4. Differentiate between self-employed workers, casual labourers and regular salaried employees.
    Page Reference: 97
  5. Explain the distribution of workforce in rural and urban India.
    Page Reference: 97-100
  6. Analyse the sector-wise distribution of workforce in India.
    Page Reference: 99-100
  7. What is meant by jobless growth? Explain with reference to India.
    Page Reference: 100-101
  8. Explain the changing structure of employment in India after economic reforms.
    Page Reference: 100-102
  9. Discuss the meaning and causes of casualisation of workforce.
    Page Reference: 102
  10. Differentiate between formal and informal sectors.
    Page Reference: 103-105
  11. Explain the major problems faced by informal sector workers.
    Page Reference: 104-105
  12. Discuss the impact of informalisation of workforce in India.
    Page Reference: 103-105
  13. Explain open unemployment with examples.
    Page Reference: 106-107
  14. What is disguised unemployment? Why is it common in agriculture?
    Page Reference: 107
  15. Explain seasonal unemployment in India.
    Page Reference: 107-108
  16. Discuss government measures for employment generation.
    Page Reference: 108-109
  17. Explain the role of MGNREGA in rural employment generation.
    Page Reference: 108
  18. Differentiate between direct and indirect employment generation by government.
    Page Reference: 108-109
  19. Explain the concept of outsourcing and its impact on employment.
    Page Reference: 109
  20. Analyse the role of service sector in employment generation.
    Page Reference: 109-110
  21. Why is the informal sector expanding in India?
    Page Reference: 103-105
  22. Discuss the major employment trends in post-reform India.
    Page Reference: 100-110
  23. Explain the relationship between GDP growth and employment growth.
    Page Reference: 100-101
  24. Why are women workers undercounted in employment statistics?
    Page Reference: 95-96
  25. Discuss the challenges faced by casual wage labourers.
    Page Reference: 97-98
  26. Explain why rural workforce participation is higher than urban participation.
    Page Reference: 95
  27. Discuss the role of labour laws in formal sector employment.
    Page Reference: 103
  28. Explain the significance of employment generation programmes.
    Page Reference: 109
  29. Analyse the impact of unemployment on society.
    Page Reference: 106-108
  30. Explain how technology and outsourcing have changed employment patterns.
    Page Reference: 109

Data-Based and Factual Questions

1. Approximately how many workers were there in India during 2022-23?

Answer: About 545 million workers

Page Reference: 94

2. What percentage of India’s workers are men?

Answer: About 77%

Page Reference: 95

3. What was India’s worker-population ratio in 2023-24?

Answer: 43.7

Page Reference: 95

4. What was the worker-population ratio for urban women in 2023-24?

Answer: 20.7

Page Reference: 95

5. What percentage of India’s workforce was self-employed?

Answer: About 58%

Page Reference: 97

6. What percentage of workforce consisted of casual wage labourers?

Answer: About 20%

Page Reference: 97

7. What share of urban workforce worked in the service sector?

Answer: About 61%

Page Reference: 100

8. What share of female workforce was employed in the primary sector?

Answer: About 64%

Page Reference: 100

9. What percentage of workforce was employed in the primary sector in 1972-73?

Answer: 74.3%

Page Reference: 101-102

10. What percentage of workforce was employed in the service sector in 2023-24?

Answer: 29.8%

Page Reference: 102

11. How many workers were employed in the formal sector in 2019-20?

Answer: About 59 million

Page Reference: 104

12. Approximately what percentage of workers were in the informal sector in 2019-20?

Answer: About 89%

Page Reference: 104

13. How many permanent workers reportedly lost jobs in Ahmedabad textile mills?

Answer: More than 80,000

Page Reference: 105

14. How many non-permanent workers lost jobs in Ahmedabad textile mills?

Answer: Over 50,000

Page Reference: 105

15. How many days of guaranteed wage employment are provided under MGNREGA?

Answer: 100 days

Page Reference: 108

Very Important Board Exam Questions

  1. Explain the meaning and significance of worker-population ratio.
  2. Differentiate between formal and informal sectors with examples.
  3. Explain disguised unemployment and seasonal unemployment.
  4. Discuss the changing structure of employment in India.
  5. What is jobless growth? Explain its causes and consequences.
  6. Explain the role of government in employment generation.
  7. Analyse the impact of informalisation of workforce in India.
  8. Explain the major employment trends in post-reform India.
  9. Discuss the role of service sector in employment generation.
  10. Explain the causes of unemployment in rural India.
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