Target Exam

CUET

Subject

Economics

Chapter

Indian Economic Development: Employment - Growth, Informalisation and Other Issues

Question:

Which of the following statement is correct about informal sector?

Options:

Those who are working in the informal sector enjoy social security benefits

Informal sector includes self-employed who do not have any hired workers

Employ 10 hired workers or more

It includes all the public sector establishments

Correct Answer:

Informal sector includes self-employed who do not have any hired workers

Explanation:

The correct answer is Option (2) → Informal sector includes self-employed who do not have any hired workers

In the informal sector, many workers are self-employed or work in small businesses without formal contracts or benefits. They typically do not enjoy social security benefits, and the sector does not employ a significant number of workers as defined by formal employment criteria. Therefore, the other statements provided are incorrect.