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(Solution of all type1 mark questions)
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Case Study & Assertion/Reason
ECONOMICS CLASS 12
Employment, Growth and Informalisation
ONE MARKS SOLUTION
Presented by : Ms. SHILPI TANEJA
HOLY PUBLIC SCHOOL, GREATER NOIDA
Session's Video Link
https://youtu.be/DFeZpSWLPiM
ASSERTION AND REASON (1)
 Assertion (A): As agriculture is already overcrowded, a major proportion of the increasing
labour force needs to find alternative employment opportunities in other non-farm sectors.
 Reasoning (R): Non-farm economy has several segments in it; some possess dynamic linkages
that permit healthy growth while others are in subsistence, low productivity propositions.
a. Both Assertion (A) and Reason (R) are true and Reason (R) is the correct
explanation of Assertion (A).
b. Both Assertion (A) and Reason (R) are true and Reason (R) is not the
correct explanation of Assertion (A).
c. Assertion (A) is true but Reason (R) is false.
d. Assertion (A) is false but Reason (R) is true.
a. Both Assertion (A) and Reason (R) are true and Reason (R) is
the correct explanation of Assertion (A).
 Assertion (A): Percentage of female worker is low in Urban Area
 Reason (R): In urban areas, job for women is governed by Family decisions
rather than Individual Decision
 Assertion (A): Disguised unemployment is present in India.
 Reason (R): Agricultural productivity at the margin is close to zero.
 Assertion (A): Rate of participation of women in rural areas is higher than in urban areas.
 Reason (R): Poverty in rural areas compels women to seek employment in less productive
jobs, early in life. Education remains ignored whereas employment in urban areas
requires qualification.
 Assertion (A): Dharmendra is a restaurant owner and transacts all his business through
bank. He has a staff of eight employees whom he pays salaries on regular basis. Ravi is the
accountant in his restaurant. Dharmendra pays fair salaries to his employees but do not
provide ant extra benefits to its employees.
 Reason (R): Ravi is employed in informal sector.
 Assertion (A): There are several goods and services that the society
needs; however, the private sector does not produce all of them.
 Reason (R): Private sector is profit driven.
 Assertion (A): Worker-population ratio of women workers in rural areas is more than the
women in urban areas.
 Reason (R): The number of women workers in our country are generally underestimated
because many activities undertaken by them are not recognised as productive work.
b. Both Assertion (A) and Reason (R) are true and Reason (R) is
not the correct explanation of Assertion (A).
 Assertion (A): Women participation in workforce is less.
 Reason (R): Women education in India is still lagging behind which
implies low employment opportunities for women.
 Assertion (A): It is common to find that where men are able to earn higher
incomes, families discourage female members from taking up jobs.
 Reason (R): Household activities performed by women leads to the
underestimation of the number of women workers in India.
 Assertion (A): About 31 per cent of workers are in the service sector.
 Reason (R): Secondary sector provides employment to only about 24
per cent of workforce.
 Assertion (A): Jobless growth is a serious phenomenon challenging
the Indian growth story.
 Reason (R): GDP growth in India is driven largely by technology.
 Assertion (A): It is necessary to create employment in the formal sector than in the
informal sector.
 Reason (R): Workers of the formal sector enjoy social security benefits and also they
remain protected by the labour laws which is not the case in the informal sector.
 Assertion (A): Informal worker generally form the labour union.
 Reason (R): The informal sectors do not give regular income and don’t
have any protection and follow any regulation of the govt.
 Assertion (A): Helping workers include those people who help the main
workers.
 Reason (R): Sonali is a housewife. Besides taking care of household chores,
She works in the cloth shop which is owned and operated by her husband.
 Assertion (A): Urban unemployment is a spill over of rural unemployment.
 Reason (R): Owing to the lack of opportunities of employment, people in the rural areas
are compelled to migrate to the urban areas in search of livelihood. This compounds the
problem of urban unemployment.
 Assertion (A): Labour force and labour supply are identical concept.
 Reason (R): Labour supply refers to the supply of labour corresponding to
different wage rates. While labour force refers to the number of workers
actually working or willing to work.
 Assertion (A): Urban unemployment is a spill over of rural unemployment.
 Reason (R): Due to lack of opportunities of employment, people in rural areas
are compelled to migrate to urban areas in search of livelihood.
 Assertion (A): A large part of the population is engaged in agriculture as a
source of livelihood.
 Reason (R): Manufacturing sector has been unable to absorb people working in
agricultural sector.
CASE STUDY / REPORT BASED (01)
 REPORT-1
 Survey indicated that over population is one of the major

cause of unemployment in our country. Despite the
Completion of the 12th 5 year plan, the size of
unemployment has continued to scale up. The Non-
utilisation of manpower, Social wastage occurs a lot in
our country.
 Answer the following questions.
 1. Which type of employment usually takes place
in Joint family system?
 Answer: Disguised Unemployment

 2. State two social consequences of
unemployment
 Answer: Low Quality of life, Gender inequality

Answer the following questions.
 3. ____________ of workforce is defined as a

situation where percentage of workforce in the
formal sector tends to decline and that in the
informal sector tends to rise.
 Answer: Informalisation

 REPORT 2
 Economic Survey 2020: The survey said the number of self-

employed, regular wage earners and casual labourers have
come down by 17 lakh in six years till 2017-18. Quoting various
government sources, it pegged India’s workforce at 47.12 crore
in FY18 compared with 47.29 crore in FY12, even as employment
was getting more formal in nature. There was also a drop in
female employment in the overall job space. From 12.91 crore in
2011-12, their number came down to 10.85 crore in 2017-18.
Stressing on the need to set things right, the survey said, “In an
era of globalisation, no country can develop and achieve its full
potential if half of its population is locked in non-remunerative,
less productive and non-economic activities”.
 REPORT 2
 The survey also found that the number of self-employed people,

too, came down during the period to 24.21 crore from 24.54
crore; but that is mostly due to a significant drop in the number
of ‘unpaid family labour’ category. The share of regular
wage/salaried employees in the total employment landscape
has, however, increased by five percentage points to 23% in
2017-18 from 18% in 2011-12. In absolute terms, the jump is
significant, around 2.62 crore – 1.39 crore in urban areas and
1.21 in rural India. On the other hand, the distribution of workers
in casual labour category decreased by five percentage points
from 30% in 2011-12 to 25% in 2017-18 with the decline being in
rural areas.
 Answer the following questions:
 1. A situation where percentage of workforce in the
formal sector tends to decline and that in the informal
sector tends to rise is known as:
 (a) Informalisation
 (b) Casualisation
 (c) Jobless growth
 (d) None of these

 Answer: (a) Informalisation
 2. An arrangement where a worker uses his own resources
to make a living is known as:
 (a) Wage employment
 (b) Regular employment
 (c) Casual employment
 (d) Self employment

 Answer: (d) Self employment

 3. All non-farm casual wage labourers who work

for more than one employer such as construction
workers and head-load workers are _________
(formal/informal) sector workers.
 Answer: informal
 4. Less employment of females in comparison to males is an
indication of:
 (a) Economic backwardness
 (b) Social backwardness
 (c) Both (a) and (b)
 (d) None of these

 Answer: (b) Social backwardness
 Report 3
 Labour Force Participation Rate (LFPR) is a
measure of the proportion of the country's
population that is engaged actively in the labour
market, either by working or seeking work. It
provides an indication of the size of the supply of
labour available to engage in the production of
goods and services.
 Report 3
 The gap between average annual growth of labour
force and employment growth provides hints
towards increase decrease in the existing stock
of unemployed people. Work Participation Rate
(WPR) is a measure of the proportion of the
country's labour force who is engaged in work. It
provides information on the ability of the economy
to generate employment.
 Answer the Following Questions:
 1. Worker Participation Rate (WPR) is a measure

of proportion of the country's __________ (labour
force/unemployed people).
 Answer: Labour force
 2. ____________ (LFPR/WPR) provides indication of
the size of the supply of labour available to
engage in the production of goods and services.
 Answer: LFPR

 3. The formula to calculate worker population ratio

is __________ (total number workers divided by
population/total number workers divided by total
unemployed).
 Answer: total number workers divided by
population

 4. The workers who are on payroll of their
employer are called ________ (casual/regular
workers.
 Answer: Regular workers

 Report 4
 In the course of economic development of a

country, labour flows from agriculture and other
related activities to industry and services. In this
process, workers migrate from rural to urban
areas. Eventually, the industrial sector begins to
lose its share of total employment as the service
sector enters a period of rapid expansion.
 Report 4
 In the last four decades, people have moved from

self-employment to casual wage work. Yet, self-
employment continues to be the major
employment provider. Scholars call the process of
moving from self-employment and regular salaried
employment to casual wage work as casualization
of workforce. This makes workers highly
vulnerable.
 1. The newly emerging jobs are mostly found in
the _________ sector.
 Answer: Service
 2. __________ of workforce is moving from self-

employment and regular salaried employment to
casual wage work.
 Answer: Casualisation
 3. An establishment, with four hired workers is
known as _______.
 Answer: Informal
 4. The construction workers are known as _______.

 Answer: Casual wage labourers
 Report 5
 Unemployment is a very serious issue not only in

India but in the world .There are hundreds and
thousands of people out there who do not have
employment. Besides the problem of
unemployment are very severe in India because
of the growing population and demand for jobs.
Moreover, if the country neglects this problem
then it will be going to become the reason for the
doom of the nation.
 Report 5
 Unemployment refers to a situation in which

skilled and talented people wanted to do a jobs
but cannot find the proper job due to several
reasons for various type of unemployment in the
country including disguised unemployment, open
unemployment, technological unemployment and
seasonal unemployment etc.
 Report 5
 Worker population ratio is an indicator which is used for analysing the
employment situation in the country. In India the proportion of work
force in the formal Sector to total workforce is very high population
growth slow economic growth, seasonal occupation, slow growth of
economic sector and fall in the cottage industry are major reason for
unemployment in India in last portion of the population is engaged in
the agriculture sector and the sector provides employment in harvest
or plantation time only. if things will go on like the current scenario
then employment will become a major issue it can give rise to
increase in poverty increasing crime rate, exploitation of labour
political instability and loss of scale all these can prove to be fatal for
the economy.
 1. The proportion of population that is actively
contribute to the production of goods and service
of a country is called ________ (Worker
population/Head count ratio)
 Answer: Worker population ratio
 2. __________ (Disguised/Open) unemployment is a kind
of unemployment in which there are people who are
visibly employed but are actually unemployed.
 Answer: Disguised

 3. __________ (Agriculture/service) sector is a major
source of livelihood for Indian workers.
 Answer: Agriculture
 4. _____________ (Casualisation/Brain drain) of
workforce is the process of moving from self
employment and regular salaries employment to
unorganized wage work.
 Answer: Casualisation
Session's Video Link
https://youtu.be/DFeZpSWLPiM
Case Study & Assertion/Reason
ECONOMICS CLASS 12
Employment, Growth and Informalisation
ONE MARKS SOLUTION
Presented by : Ms. SHILPI TANEJA
HOLY PUBLIC SCHOOL, GREATER NOIDA
Join 1 Marks Family (Like, Follow and Subscribe)
 1 Marks Solution: www.1markssolution.com
YouTube: 1 Marks Solution
 Contact: +91-9662592407 +91-9451927636
 Instagram: 1 Marks Solution
email: support@markssolution.com
 Blog: https://1markssolution.blogspot.com/
 Twitter: @Onemarks1
 FB Page & FB Group: 1 Marks Solution
 Founder: Dr. Asad, Lucknow

To get more videos of all subjects
Like
Share
Subscribe
(Solution of all type1 mark questions)
DOWNLOAD APP 1 MARKS SOLUTION
FROM PLAY STORE ORGANISER
https://play.google.com/store/apps/details?i
LINK -
d=com.theappsstation.android5e9d43ff345f2
(Content in app will be available from 1st February 2021)

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 Survey indicated that over population is one of the major

 3. ____________ of workforce is defined as a

 Economic Survey 2020: The survey said the number of self-

 The survey also found that the number of self-employed people,

 3. All non-farm casual wage labourers who work

 1. Worker Participation Rate (WPR) is a measure

 3. The formula to calculate worker population ratio

 In the course of economic development of a

 In the last four decades, people have moved from

 2. __________ of workforce is moving from self-

 4. The construction workers are known as _______.

 Unemployment is a very serious issue not only in

 Unemployment refers to a situation in which

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