Practicing Success

Target Exam

CUET

Subject

Economics

Chapter

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

Question:

Read the given case study and answer the following questions :

Agriculture is the primary occupation in rural India. It can't provide work to the rural population of the country throughout the year. In absence of multiple cropping & diversification of agricultural activities, a large population remains idle for almost half a year.

Indian is also suffering from disguised unemployment due to excessive pressure of population. In disguised unemployment it seems that everyone is employed but in reality, sufficient full time work is not available for all.

Unemployment problem in India is the result of inadequate employment planning, slow growth rate, backwardness in agriculture and industrial sector, population explosion etc.

Government should try to support skill and retraining activities to address the gaps between demand and supply of work skills and qualifications. Problem of unemployment is leading to fatal results for the economy and restricting India's growth rate.

In disguised unemployment, people are-

Options:

Underemployed

Overemployed

Voluntarily Unemployment

Seeing Employment

Correct Answer:

Underemployed

Explanation:

The correct answer is option (1) : Underemployed

Disguised unemployment refers to a situation where individuals appear to be employed, but their marginal productivity is essentially zero or negligible. This occurs when there are more people engaged in a task or occupation than is necessary for efficient production. In rural areas, this often manifests as more labor being employed in agriculture than is required, leading to low productivity per worker. As a result, despite seemingly being employed, these individuals contribute little to overall output. Therefore, they are considered underemployed rather than fully and effectively employed.