Practicing Success

Target Exam

CUET

Subject

Economics

Chapter

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

Question:

Which of the following are operating in the informal sector of the country ?

A. Cycle-rickshaw puller

B. Civil engineer in a government construction enterprises

C. Cook in a hostel which employs nine hired workers

D. Private school teacher in a school which has eleven hired teachers.

E. Farmer cultivating his plot of land

Choose the correct answer from the options given below :

Options:

B and C only

A and D only

A, B and D only

A, C and E only

Correct Answer:

A, C and E only

Explanation:

The correct answer is option (4) : A, C and E only

 - A. Cycle-rickshaw puller (operating in the informal sector)

- C. Cook in a hostel which employs nine hired workers (operating in the informal sector)

- E. Farmer cultivating his plot of land (operating in the informal sector)

We classify workforce into two categories: workers in formal and informal sectors, which are also referred to as organised and unorganised sectors. All the public sector establishments and those private sector establishments which employ 10 hired workers or more are called formal sector establishments and those who work in such establishments are formal sector workers. All other enterprises and workers working in those enterprises form the informal sector. Thus, informal sector includes millions of farmers, agricultural labourers, owners of small enterprises and people working in those enterprises as also the self-employed who do not have any hired workers. It also includes all non-farm casual wage labourers who work for more than one employer such as construction workers and headload workers