Employment, Growth, Informalisation, And Other Issues (Ch-7) Important Questions || Class 12 Economics (Indian Economic Development) Book 2 Chapter 7 in English ||

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Chapter – 7

Employment, Growth, Informalisation, And Other Issues

In this post, we have given the Important Questions of Class 12 Economics Chapter 7 (Employment, Growth, Informalisation, And Other Issues) in English. These Important Questions are useful for the students who are going to appear in class 12 board exams.

BoardCBSE Board, UP Board, JAC Board, Bihar Board, HBSE Board, UBSE Board, PSEB Board, RBSE Board
ClassClass 12
Chapter no.Chapter 7
Chapter Name(Employment, Growth, Informalisation, And Other Issues)
CategoryClass 12 Economics Important Questions in English
Class 12 Economics Chapter 7 Employment, Growth, Informalisation, And Other Issues Important Questions in English

Chapter 7 Employment, Growth, Informalisation, And Other Issues

Q1) What is an economic activity?

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Ans. All activities which contribute to gross national product through production of goods and services are called economic activities.

Q2) Who is worker?

Ans. A worker is an individual who is doing some productive employment to earn a living.

Q3) Define self employed workers?

Ans. Self-employed workers are those who work in their own business or profession and get profit as their reward.

Q4) Define Casualization.

Ans. Casualization is defined as a situation in which percentage of casually hired workers in the workforce tends to grow overtime.

Q5) Define Jobless Growth

Ans. Jobless growth is defined as an economic phenomenon in which an economy experiences growth while maintaining or decreasing its level of employment.

Q6) Are the following workers a beggar, a thief, a smuggler, a gambler? Why?

Ans. No, they are not workers, as they are not doing any productive work.

Q7) Why is self-employed workforce higher in rural areas?

Ans. In case of rural areas, self-employed workers are greater as majority of rural people are engaged in farming on their own plots of land.

Q8) Give the meaning of disguised unemployment.

Ans. Disguised unemployment refers to a state in which more people are engaged in work than are really needed.

Q9) Who is casual wage labourer?

Ans. Workers who are not hired by their employers on a regular or permanent basis (i.e. don’t have job security) and do not get social security benefits, are formed as casual wage labour.

Q10) How will you know whether a worker is worker in the informal sector?

Ans. It is an unorganised sector of an economy which includes all those private sector enterprises which employ less than 10 workless.

Q11) Why are regular salaried employees more in urban areas than in rural areas.

Ans. Regular salaried employees are more in urban areas as considerable section of urban people are able to study in various education institutions and if enables them to look for an appropriate job to suit their qualification and skill.

Q12) Explain different types of unemployment prevails in rural regions.


  • Seasonal Unemployment:- It refers to a situation where a number of person that are not able to find a job in a particular season.
  • Disguised unemployment is a kind of unemployment in which some people look like being employed but are actually not employed fully. This situation is also known as Hidden Unemployment. In such a situation more people are engaged in a work than required. In other words it refers to a situation of employment with surplus manpower in which some workers have zero marginal productivity. For example in rural areas, this type of unemployment is generally found in agricultural sector.

Q13) Explain any four main causes of wide spread unemployment in India.


State the causes of unemployment in India?

Ans. Causes of unemployment:

  • Slow rate of economic growth
  • Population explosion
  • Underdeveloped agriculture
  • Defective educational system
  • Slow growth of Industry
  • Decline of cottage and small industry.
  • Faulty planning
  • inadequate employment planning.
  • Low capital formation.
  • Excessive use of Foreign Technology
  • Lack of financial resources
  • Increase in labour force

Q14) Suggest some remedial measures to remove unemployment In India?

Ans. Remedial measures for unemployment:

  • Accelerating growth rate of GDP
  • Control of population growth
  • Development to small scale enterprises.
  • Encouragement in infrastructure.
  • Special employment programmes.
  • Rapid industrialisation.

Q15) What is the difference between labour force and work force?


  • Labour Force : It refers to the number of persons actually working or willing to work. It is not related to wage rate. Because it is measured in terms of the number of persons (not in terms of person-days), size of labour force increases or decreases only when the number of persons actually working or willing to work increases or decreases.
  • Work force : It refers to the number of persons actually working and does not account for those who are willing to work. It is a measurement of actual labour force. The difference between workforce and labour force is called unemployment. Unemployment = Labour Force – Work Force

Q16) Compared to urban women more rural women are found working. Why?

Ans. The difference in participation rates is very high between urban and rural women. In urban areas, for every 100 urban females, only about 14 are engaged in some economic activities. In rural areas, for every 100 rural women, about 26 participate in the employment market.

  • It is common to find that where men are able to earn high incomes, families discourage female members from taking up jobs. Earnings of urban male workers are generally higher than rural males and so urban families do not want females to work.
  • Apart from this, many activities of the household in which urban women are engaged, are not recognised as productive work, while women working on farms in the rural areas are considered a part of the workforce if they are being paid wages in cash or in the form of foodgrains.
  • It is because of poverty that women in rural areas are forced to seek employment. On the other hand, women belonging to affluent families in urban areas generally do not work.
  • In agriculture and allied activities, high skill and expertise are not required, hence women work to support their families. Also in the rural area, the size of the families is large so the women work to feed their large families.

Q17) Mention the salient features of the unemployment situation in India.

Ans. Some of the salient features of the unemployment situation in India are mentioned below:

  • The incidence of unemployment is much higher in urban areas than in rural areas.
  • Underemployment is higher in case of women.
  • Unemployment rates for women are higher than those for men.
  • Incidence of unemployment among the educated is much higher.

Q18) How is unemployment measured in India? Also give trends by these measures.

Ans. Measurement of Unemployment:

  • Usual Status (UPS): The Usual Status approach to measuring unemployment uses a reference period of 365 days i.e. one year preceding the date of the survey of NSSO for measuring unemployment. The Usual Status approach of measuring unemployment also looks at the principal activity and subsidiary activity status of the worker.
  • Current Weekly Status: The Current Weekly Status (CWS) approach to measuring unemployment uses seven days preceding the date of survey as the reference period. A person is considered to be employed if he or she pursues any one or more of the gainful activities for at least one-hour on any day of the reference week. On the other hand, if a person does not pursue any gainful activity, but has been seeking or available for work, the person is considered as unemployed. Current Daily Status (CDS): The current daily status approach to measuring unemployment seeks to ascertain the activity status of an individual for each day of the reference week. It reports time disposition of an individual on each day of the reference week. This means that in addition to recording the activity being pursued, time intensity is also recorded in quantitative terms for each day of the reference week.

Q19) What steps have been taken by the government solve the problem of unemployment in rural areas?

Ans. Apart from the programmes which are mainly aimed at the development of infrastructure, such as construction of small and large dams, canals and roads, the government strategies to generate employment are closely associated with poverty alleviation programmes. Nevertheless, the government has undertaken many special programmes to generate employment opportunities. The major ones among them are:

  • MGNREGA: NREGA was launched in 2005 which has been renamed as MGNREGA (Mahatama Gandhi National Rural Employment Guarantee Act, 2005) which ensures 150 days of employment guarantee to all rural people willing to do unskilled manual work.
  • Rural Works Programme: This programme aims at construction of civil works of permanent nature in rural areas.
  • Integrated Dry Land Agricultural Development: Under this scheme, permanent works like soil conservation, development of land and water harnessing are undertaken.
  • National Rural Employment Programme: This programme aims to create community assets for strengthening rural infrastructure, like drinking water wells, community irrigation wells, village tanks, minor irrigation works, rural roads and schools.
  • The Rural Landless Employment Guarantee Programme: It aims at generating gainful employment, creating productive assets in rural areas and improving the overall quality of rural life.
  • Skill Development: One of the major issues relating to unemployment is skill development. Change in the production methods has led to increase in demand for skilled labour. A skilled labourer is one who has proper training and education to work in a particular field. Training and education increase the productivity of workers.

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