Question

(i) “Amita is a regular worker in a private firm that employs twelve hired workers.” Is she working in the formal/informal sector? Give valid reasons…

Accepted Answer

(a) (i) Amita is working in the formal sector. As formal sector includes all the public sector and private sector establishments that employ 10 hired workers or more. (ii) Two sources of data on unemployment in India are: - Reports of Census of India - National Statistical Office’s Reports of Employment and Unemployment Situation (iii) Promoting women’s education in India is imperative for societal progress and gender equality. Educated women contribute to economic growth by entering the workforce and making informed decisions about their lives. Moreover, educating women makes a favourable impact on the fertility rate and health care of women and children. Hence, investing in women’s education uplifts communities and drives sustainable development across India. OR (b) (i) People in rural areas have limited resources. To earn higher income people participate more in the employment market. As compared to rural areas, a large section in the urban areas can attain formal education and have a variety of employment opportunities at their disposal. Thus, people in urban areas look for appropriate job to suit their qualifications and skills. Hence, participation rate of people in economic activities in rural areas is more than that in urban areas. (ii) Disguised unemployment refers to a situation when the person seems to be employed but is not contributing to the output i.e., the marginal productivity of labour is zero. People who are disguisedly unemployed do not contribute anything to the output. Hence, there is no change in the output and employment in a country.

Marking-scheme solution

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