NCERT Solutions for Class 11 Economics (Indian Economic Development) Chapter 6 Employment : Growth, Informalisation and Other Issues

NCERT
SOLUTIONS
CLASS - 11th

aglase .co

Book : Indian Economic Development Ncert Solutions | Chapter - 7 Economics

Class : 11th

Subject : Economics

Chapter : 7

Chapter Name : Employment : Growth, Informalisation and Other Issues

Q1 Who is a worker?

Answer. All those who are engaged in economic activities, in whatever capacity- high or low, are
workers. Economic activities are those activities which contribute to the gross national product.
Even if some temporarily abstain from work due to illness, injury, or physical disability, bad
weather, festivals, social or religious functions, they are also workers. Workers also include all
those who help the main workers in these activities. Those who are self-employed are also
workers.

Page : 134 , Block Name : Exercises

Q2 Define worker-population ratio.

Answer. Worker-population ratio is an indicator which is used for analyzing the employment
situation in the country. This ratio is useful in knowing the proportion of the 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 a very high proportion of its population is not involved directly in economic activities.

Page : 134 , Block Name : Exercises

Q3 Are the following workers- a beggar, a thief, a smuggler, a gambler? Why?

Answer. All those who are engaged in economic activities, in whatever capacity- high or low, are
workers. Economic activities include all those activities that contribute to the gross national

Page 1 of 10

Book : Indian Economic Development Ncert Solutions | Chapter - 7 Economics

product. A beggar, a thief, a smuggler, a gambler are not workers because they do not
contribute to the gross national product of the country.

Page : 134 , Block Name : Exercises

Q4 Find the odd man out (i) owner of a saloon (ii) a cobbler (iii) a cashier in mother dairy (iv) a
tuition master (v) transport operator (vi) construction worker.

Answer. A cashier in mother dairy is the odd one because it has a regular salaried job among
the others. A transport operator and a construction worker are casual wage labourers while
owner of saloon, a cobbler and a tuition master are self-employed.

Page : 135 , Block Name : Exercises

Q5 The newly emerging jobs are found mostly in the _________ sector (service/manufacturing).

Answer. The newly emerging jobs are found mostly in the service sector.

Service sector includes trade, commerce, banking, insurance, health and other services. It is
taking lead over manufacturing sector as a source of employment. The services are developing
at a faster pace than the manufacturing and other production activities, this is due to the
globalization of the economy.

Page : 135 , Block Name : Exercises

Q6 An establishment with four hired workers is known as _________(formal/informal) sector
establishment.

Answer. An establishment with four hired workers is known as informal sector establishment.

Page 2 of 10

Book : Indian Economic Development Ncert Solutions | Chapter - 7 Economics

All the sectors which employ less than 10 workers are informal sector. It includes millions of
farmers, agricultural labourers, owners of small enterprises and people working in those
enterprises as also self employed who do not have any hired workers.

Page : 135 , Block Name : Exercises

Q7 Raj is going to school. When he is not in school, you will find him working on his farm. Can
you consider him as a worker? Why?

Answer. All those who are engaged in economic activities, in whatever capacity- high or low, are
workers. Economic activities include all those activities contribute to the gross national product.
Workers also include those who help the main workers in these activities. Those who are
self-employed are also called workers. Hence, Raj can be considered as workers because work
on farm is an economic activity.

Page : 135 , Block Name : Exercises

Q8 Compared to urban women, more rural women are found working. Why?

Answer. The nature of employment in India is multi-faceted. Since a majority of our people
reside in rural areas, the proportion of the workforce residing there is higher. The rural workers
constitute about three fourths of the population. Women workers account for one-third of the
rural workforce whereas in urban areas, they are just one fifth of the workforce. For every 100
urban females, only about 15 are engaged in economic activities. In rural areas, for every 100
rural women about 25 participate in the economic market .

It is easy to find that where men are able to earn high incomes, families discourage female
members from taking up jobs. Many activities for the household engaged in by women are not
recognized as productive work.

Page : 135 , Block Name : Exercises

Page 3 of 10

Book : Indian Economic Development Ncert Solutions | Chapter - 7 Economics

Q9 Meena is a housewife. Besides taking care of household chores, she works in the cloth shop
which is owned and operated by her husband. Can she be considered a worker? Why?

Answer. All those who are engaged in economic activities, in whatever capacity- high or low,
are workers. Economic activities include all those activities contribute to the gross national
product. Workers also include those who help the main workers in these activities. Those who
are self-employed are also called workers. Thus Meena can be considered as a worker as she
contributes in economic and activities and also she is helping her husband, the owner of the
shop.

Page : 135 , Block Name : Exercises

Q10 Find the odd man out (i) rickshaw puller who works under a rickshaw owner (ii) mason
(iii) mechanic shop worker (iv)shoeshine boy.

Answer. Shoeshine boy is the odd man. This is because all other are hired workers and work
under a head and receive wages or salaries. A shoeshine boy is self-employed and nobody
pays him wages/salaries.

Page : 135 , Block Name : Exercises

Q11 The following tables shows distribution of workforce in India for the year 1972-73. Analyse
it and give reasons for the nature of workforce distribution. You will notice that the data is
pertaining to the situation in India 30 years ago!

Place of Residence Workforce (in millions)

Male Female Total

Rural 125 69 195

Urban 32 7 39

Page 4 of 10

Book : Indian Economic Development Ncert Solutions | Chapter - 7 Economics

Answer.

➔ Total workforce population in 1972-73 was 234 millions which included 195 million of
rural workforce population and 39 million of urban population. There is greater
involvement of rural workforce as compared to urban workforce. Since the majority of our
people reside in rural areas, the proportion workforce residing there is higher.
➔ The number of female workers in rural areas is 69 million whereas, male workers is 125
million. Similarly, the number of female workers in urban areas is 7 million and male
workers is 32 million. The participation of males is higher than female workers in both
rural and urban areas. Women carry out works like cooking, fetching water and fuel
wood, etc. This is why, these women are not categorized as workers. Also the families
discourage female members from taking up jobs.
➔ The number of female workforce in rural areas is 69 million whereas in urban areas is 7
million only. Despite the engagement of the majority of the population in agriculture and
allied activities, it had low productivity leading to low earnings and widespread poverty.

Analyzing the above data, it can be concluded that Indian economy suffered from low
productivity, unemployment, disguised unemployment and widespread poverty in the
agricultural sector and low female participation rate 30 years ago.

Page : 135 , Block Name : Exercises

Q12 The following table shows the population and worker population ratio for India in
1999-2000. Can you estimate the workforce (urban and total) for India?

Region Estimates of Worker Population Estimated No. of
Population(in crores) Ratio Workers (in crores)

Rural 71.88 41.9 (71.88/100)*41.9 =
30.12

Urban 28.52 33.7

Total 100.40 39.5

Answer. Estimated no. of workers in urban areas = (28.52/100)*33.7 = 9.61

Estimated no. of workers in both rural and urban area = (100.40/100)*39.5 =39.65

Page 5 of 10

Book : Indian Economic Development Ncert Solutions | Chapter - 7 Economics

Page : 135 , Block Name : Exercises

Q13 Why are regular salaried employees more in urban areas than in rural areas?

Answer. Self-employed and casual wage labourers are found more in rural areas than urban
areas. This is because the majority of the population depends on farming own plots of land and
cultivate independently. People in rural areas have limited resources to earn a higher income
and participate more in the employment market. Many do not go to schools, colleges, and other
training institutions, whereas in urban areas, a considerable section is able to study in various
educational institutions. Urban people have a variety of employment opportunities, they look for
appropriate to suit their qualifications and skills.

Page : 136 , Block Name : Exercises

Q14 Why are less women found in regular salaried employment?

Answer. When it comes to regular salaried employment, men are found to be engaged in
greater proportion. They form 20 per cent whereas women form only 13 per cent. One of the
reasons for this could be skill requirement. Since regular salaried jobs require skills and a higher
level of literacy, women might not have been engaged to a great extent. There are restrictions
imposed by the family members on women for working outside, they also have to look after the
family. There exist gender based wage discrimination which demotivates women to go ahead
for salaried jobs.

Page : 136 , Block Name : Exercises

Q15 Analyse the recent trends in sectoral distribution of workforce in India.

Answer. India is an agrarian nation; a major section of the population lives in rural areas and is
dependent on agriculture as their main livelihood. Developmental strategies have aimed at
reducing the proportion of people depending on agriculture.

Page 6 of 10

Book : Indian Economic Development Ncert Solutions | Chapter - 7 Economics

➔ Distribution of workforce by industrial sector shows substantial shift from farm work to
non-farm work. In 1972-73, about 74% of the workforce was engaged in primary sector
and in 2011-12, this proportion has declined to 50%.
➔ Secondary and service sectors are showing a promising future for the Indian workforce ,
the share of these sectors have increased from 11 to 24 percent and 15-27 per cent,
respectively.

The distribution of workforce in different status indicates that over the years people have moved
from self-employed and regular salaried employment to casual wage work.

Page : 136 , Block Name : Exercises

Q16 Compared to the 1970s, there has been hardly any change in the distribution of workforce
across various industries. Comment.

Answer. India is an agrarian nation; a major section of the population lives in rural areas and is
dependent on agriculture as their main livelihood. Developmental strategies have aimed at
reducing the proportion of people depending on agriculture.

➔ Distribution of workforce by industrial sector shows substantial shift from farm work to
non-farm work. In 1972-73, about 74% of the workforce was engaged in primary sector
and in 2011-12, this proportion has declined to 50%.
➔ Secondary and service sectors are showing a promising future for the Indian workforce ,
the share of these sectors have increased from 11 to 24 percent and 15-27 per cent,
respectively.

Analysing the given data, it can be concluded that compared to the 1970s, there has been
hardly any change in the distribution of workforce.

Page : 136 , Block Name : Exercises

Q17 Do you think that in the last 50 years, employment generated in the country is
commensurate with the growth of GDP in India? How?

Answer.

➔ 60 years of planned development have been aimed at expansion of the economy
through increase in national output and employment.

Page 7 of 10

Book : Indian Economic Development Ncert Solutions | Chapter - 7 Economics

➔ During the period 1950-2010, Gross Domestic Product (GDP) of India grew
positively and was higher than the employment growth. However, there was
always fluctuations in the growth of GDP, during this period, employment grew at
a rate of not less than 2 percent.
➔ In the late 1990s, employment growth started declining and reached the level of
growth that India had in the early stages of planning.
➔ During these years, we also find a widening gap between the growth of GDP and
employment. This means that in the economy, without generating employment,
we have been able to produce more goods and services.

Page : 136 , Block Name : Exercises

Q18 Is it necessary to generate employment in the formal sector rather than in the informal
sector? Why?

Answer. Workers in the informal sector do not get regular income, they do not have protection
or regulation from government. Workers are dismissed without compensation, technology used
is also outdated. Those working in the formal sector enjoy social security benefits, they earn
more than those in the informal sector.

Development planning envisaged that as the economy grows, more and more workers would
become formal workers and the proportion of informal sector would dwindle. The Indian
government has initiated the modernization of informal sector enterprises and provision of social
security measures to informal sector workers.

Page : 136 , Block Name : Exercises

Q19 Victor is able to get work only for two hours in a day. Rest of the day he is looking for work.
Is he unemployed? Why? What kind of jobs could persons like Victor be doing?

Answer. Economists define unemployed person as one who is not able to get employment of
even one hour in half a day. Victor works for two hours in a day, he is unemployed as he is not
working to his full capacity and is looking for work for the whole day. This kind of unemployment
is known as open unemployment. He could do part time jobs like dropping newspaper, working
in a store, delivery couriers, etc.

Page 8 of 10

Book : Indian Economic Development Ncert Solutions | Chapter - 7 Economics

Page : 136 , Block Name : Exercises

Q20 You are residing in a village. If you are asked to advise the village panchayat, what kind of
activities would you suggest for the improvement of your village which would also generate
employment?

Answer. I would suggest the following measures for employment generation in the village :

➔ Better implementation of poverty alleviation programmes that provide employment
generation opportunities such as construction of roads, bridges, schools, etc.
➔ Imparting technical knowledge and skills to the rural unemployed, increasing their
productivity.
➔ Basic education and health facilities to be made available for free.
➔ Easy and cheap credits to be made available to the rural people to encourage them to
start small scale industries.

Page : 136 , Block Name : Exercises

Q21 Who is casual wage labourer?

Answer. Casual wage labourers are casually engaged in others’ farms and in return get a
remuneration for the work done. They are usually hired by the hour or the day for performing
particular tasks. They do not work throughout the year and are generally unskilled workers.
They are unemployed for maximum days in a year. For example, workers at construction sites.

Page : 136 , Block Name : Exercises

Q22 How will you know whether a worker is working in the informal sector?

Answer. Following are ways to identify if a worker is working in informal sector :

Page 9 of 10

Book : Indian Economic Development Ncert Solutions | Chapter - 7 Economics

➔ Informal sector consists of all such establishments which employ not more than 10
workers in the enterprise.
➔ Workers in the informal sector do not get regular income, they do not have any
protection or regulation from the government. Technology used in informal sector is
outdated and they do not maintain accounts. Workers of informal sector live in slums and
are squatters.
➔ They do not enjoy any social security benefits like pension, provident fund, etc.
➔ Informal sector includes millions of farmers, agricultural labourers, owners of small
enterprise. It also includes all non-farm casual wage labourers who work for more than
one employer.

Page : 136 , Block Name : Exercises

Page 10 of 10