NCERT Solutions for Class 12 Indian Economic Development Chapter 7 MCQ Employment: Growth, Informalisation and other Issues for session 2023-24. Answers and explanation of class 12 Economics chapter 7 Multiple Choice Questions are given here with extra questions answers.

Class 12 Indian Economic Development Chapter 7 MCQ


Workers who are on permanent pay-roll of their employer are called

[A]. Self-employed workers
[B]. Casual workers
[C]. Regular workers
[D]. None of the above

Unemployment is defined as

[A]. The section of the population that is not capable of being employed.
[B]. The section of the population that is willing to work but unable to find employment.
[C]. The section of the population that is waiting to be employed.
[D]. The section of the population that are without the skills needed by the employers.

Those who work in their own establishment using their own resources are called

[A]. Hired workers
[B]. Casual workers
[C]. Regular workers
[D]. Self-employed

About __________of the total population in the country is engaged in various economic activities.

[A]. Three-fifth
[B]. Four-fifth
[C]. Two-fifth
[D]. One-fifth

Employment in Firms, Factories and Offices

In the course of economic development of a rustic, labour flows from agriculture and different connected activities to business and services. During this method, staff migrate from rural to urban areas. Eventually, at a far later stage, the commercial sector begins to lose its share of total employment because the service sector enters an amount of speedy growth. This shift is often understood by observing the distribution of staff by business.

Generally, we tend to divide all economic activities into eight completely different industrial divisions. They’re (i) Agriculture (ii) Mining and Production (iii) Manufacturing (iv) Electricity, Gas and Water (v) Construction (vi) Trade (vii) Transport and Storage and (viii) Services. For simplicity, all the operating persons engaged in these divisions are often clubbed into 3 major sectors viz., (a) primary sector which has (i) and (ii), (b) secondary sector which has (iii), (iv) and (v) and (c) service sector which has divisions (vi), (vii) and (viii).

Class 12 Indian Economic Development Chapter 7 Important Extra Question Answers

Which country’s growth rate was higher during 1980’s?

When many developed countries were finding it difficult to maintain a growth rate of even 5 per cent, China was able to maintain near double-digit growth during 1980s. in the 1980s, Pakistan was ahead of India; China was having double-digit growth and India was at the bottom.

Economic activities can be categorised in how many divisions?

Generally, we tend to divide all economic activities into eight completely different industrial divisions. They’re (i) Agriculture (ii) Mining and Production (iii) Manufacturing (iv) Electricity, Gas and Water (v) Construction (vi) Trade (vii) Transport and Storage and (viii) Services.

What is worker-population ratio?

Worker-population ratio is an indicator which is used for analysing the employment situation in the country. This ratio is useful in knowing the proportion of population that is actively contributing to the production of goods and services of a country. If the ratio is higher, it means that the engagement of people is greater; if the ratio for a country is medium, or low, it means that a very high proportion of its population is not involved directly in economic activities.

What is self-employed, casual wage labourers and regular salaried employees?

Workers who own and operate an enterprise to earn their livelihood are known as self-employed. Thus, a shop owner is self-employed. The construction workers are known as casual wage labourers; they account for about 25 percent of India’s workforce. When a worker is engaged by someone or an enterprise and paid his or her wages on a regular basis, they are known as regular salaried employees.

What is a formal sector employment?

The information relating to employment in the formal sector is collected by the Union Ministry of Labour through employment exchanges located in different parts of the country. In 2012, out of about 30 million formal sector workers, about 18 million workers were employed by the public sector. Here also men form the majority, as women constitute only about one-sixth of the formal sector workforce. Economists point out that the reform process initiated in the early 1990s resulted in a decline in the number of workers employed in the formal sector.

Human capital in different sectors

Primary sector is that the main supply of employment for majority of staff in India. Secondary sector provides employment to solely concerning 24 percent of manpower. About 31 percent of staff are within the service sector. About 60 percent of the workforce in rural India depends on agriculture, forestry and fishing. About 20 percent of rural workers are working in manufacturing industries, construction and other industrial activities. Service sector provides employment to about 20 per cent of rural workers.

Agriculture isn’t a serious supply of employment in urban areas wherever folks are principally engaged in the service sector. Concerning 60 percent of urban staff are within the service sector. The secondary sector gives employment to about one-third of urban manpower. Though both men and women workers are concentrated in the primary sector, women workers’ concentration is very high there. About 57 percent of the feminine manpower is used within the primary sector whereas less than half of males work in that sector. Men get opportunities in both secondary and service sectors.

Class 12 Indian Economics Chapter 7 Multiple Choice Questions


After the workers lost their job in 1980’s, which city experienced an economy recession and communal riots?

[A]. Ahmadabad
[B]. Bombay
[C]. Allahabad
[D]. Bangalore

An establishment with four hired workers is known as ________ sector establishment.

[A]. Formal
[B]. Informal
[C]. Both
[D]. None

Formal sector includes all those enterprises which employ

[A]. More than 10 workers
[B]. Less than 10 workers
[C]. Both
[D]. None

Data on unemployment in India can be obtained from which source?

[A]. Reducing growth rate
[B]. Reserve Bank of India
[C]. GDP
[D]. Administrative records
Informalisation of Indian Workforce

One of the objectives of development coming up within India, since India’s independence, has been to produce good keep to its individuals. It’s been envisaged that the manufacturer strategy would bring surplus employees from agriculture to business with higher customary of living as in developed countries. We’ve got seen within the preceding section, that even when 70 years of planned development, more than half of the Indian work force depends on farming because the major supply of keep.

Some employment benefits apart from wages

Economists argue that, over the years, the standard of employment has been deteriorating. Even when operating for quite 10-20 years, why do some employees not get maternity profit, provident fund, gratuity and pension? Why will an individual operating within the personal sector get a lower remuneration as compared to a different person doing identical work however within the public sector?

You’ll notice that a little section of Indian work force is obtaining regular financial gain. The govt, through its labour laws, modify them to safeguard their rights in varied ways. This section of the work force forms trade unions, bargains with employers for higher wages and different social security measures. Who are they?

Understanding formal and informal labourforce

To grasp this, we tend to classify work force into 2 categories: employees in formal and informal sectors, that are spoken organised and unorganised sectors. All the general public sector institutions and those private sector institutions that employ 10 hired employees or more are called formal sector establishments and those who work in such establishments are formal sector workers. All different enterprises and employees operating in those enterprises form the informal sector.

Thus, informal sector includes voluminous farmers, agricultural labourers, house owners of tiny enterprises and folks operating in those enterprises as conjointly the freelancer who don’t have any employed workers. It conjointly includes all non-farm casual wage labourers who work for more than one employer such as construction workers and head-load workers. You may note that this is one of the ways of classifying workers.