Gujarat Board GSEB Class 12 Commerce Economics Important Questions Chapter 6 Unemployment Important Questions and Answers.

GSEB Class 12 Economics Important Questions Chapter 6 Unemployment

Short Answer Type Questions

Question 1.
List down some of the economic problems faced by the nations of the world.
Answer:
Poverty, unemployment, inflation and depression

Question 2.
How has problem of unemployment become serious in India?
Answer:
India is a developing country. On one hand, India faces high population growth rate and on the other hand, it faces insufficient economic development. Thus, our economy is not able to acquaint skilled people for work which causes unemployment in India.]

Question 3.
What do you mean by developed nations and developing nations?
Answer:
Developed nations: Nations which are economically developed like America and Britain are called developed nations. Developing nations: Nations, where the process of development is going on, are called developing nations. For example, India.

Question 4.
Define ‘unwilling unemployment.
Answer:
At current wage rate, if ‘a person is eager and ready to do the work but is deprived of work’ then it is said to be ‘unwilling unemployment’ or ‘compulsory unemployment’.

Question 5.
What do you mean by ‘voluntary ‘ unemployed’?
Answer:
If a person is ‘not willing and ready to work and hence not getting work’ then he is not said to be unemployed. This type of person is said to be Voluntarily unemployed’.

Question 6.
What is an active workforce?
Answer:
Active workforce is the fraction of a population that is either employed or actively seeking employment. Active workforce in India is from age group of 15 – 64 years.

Question 7.
Which group of people is not a part of active workforce?
Answer:
Children, elderly people, weak people and people who do not want to work, are not considered part of active work force.

Question 8.
Which group of people is not a part of active workforce?
Answer:
Children, elderly people, weak people and people who do not want to work, are not considered part of active work force.

Question 9.
Why is it said that unemployment creates economic, social, ethical and political problems?
Answer:
An unemployed person is economically dependent on others and cannot live in society with dignity. An unemployed person faces several problems in the society such as social status, maintaining proper standard of living, etc. The person may then divert o unethical means of earning and may even become a problem for the political system of the country. Hence ……..

Question 10.
List down the different types of unemployment.
Answer:

1. Open unemployment,
2. Under-employment,
3. Disguised unemployment,
4. Cyclical unemployment and
5. Frictional unemployment

Question 11.
Which type of unemployment is seen in developing nations?
Answer:
Mostly, disguised unemployment

Question 12.
How does India measure the rate of unemployment?
Answer:
India measures the rate of unemployment on the basis of time, income, agreement and productivity.

Question 13.
How can unemployment be solved in developing countries?
Answer:
Unemployment in developing countries can be solved by introducing economic, social and political changes and by developing extensive intra-structural facilities.

Question 14.
When is a person said to be ‘intensively unemployed’?
Answer:
If a person has willingness and capacity to work but does not get work of more than 28 hours a week, he is considered to be ‘intensively unemployed’. A person who is employed for more than 28 hours but less than 48 hours a week then he is considered ‘less intensively unemployed’.

Question 15.
How does income of people help to measure unemployment in India?
Answer:
When a person earns only that much money which cannot alleviate his poverty then, from income point of view he is poor. This type of poverty is seen widely in rural
India. For example, a person needs to earn Rs. 30,000/- per month to cover his month expenses but earns only Rs. 15,000/.

Question 16.
When is a person said to be underemployed?
Answer:
When a person is capable of getting a good job but does not get a job as per his capability and so he accepts job of a lower level which then earns him very less income then he is underemployed. For example, a person with C.A. degree works as a clerk.

Question 17.
How productivity helps to measure unemployment in India?
Answer:
If a worker who has a higher productivity gets less work then he will be able to produce less in spite of the fact that he is more productive. For example, a person can make 20 meter clothes in a day but gets a job where he can make only 10 meter clothes.

Question 18.
Define open (full) unemployment.
Answer:
People who are ready to work at current wage rate and also possess necessary qualification but do not get any job are said to be ‘fully unemployed or openly unemployed’.

Question 19.
In which scenario do the countries face ‘open unemployment’?
Answer:
The countries in which both labour supply and urbanization increase at a faster rate experience high rate of ‘open unemployment’.

Question 20.
Which type of people face full/open unemployment?
Answer:
People who migrate from villages to cities in search of job, people who are less educated and skilled and people who spend money and consume goods in spite of not having job in hand face full/open unemployment.

Question 21.
Which age group mostly faces open full unemployment?
Answer:
Age group of 15 to 25 years.

Question 22.
List down the methods to calculate open/full unemployment in India.
Answer:
We can calculate open/ full employment by

1. Obtaining number of people registered in employment exchange center,
2. Through sample survey of labour supply and
3. Through Census.

Question 23.
Define seasonal unemployment with example.
Answer:
Seasonal unemployment occurs when people are unemployed at certain time of the year, because they work in sectors/ industries where they are not needed all year round. For example, the agricultural labourers get work only during sowing and harvesting season and so they remain unemployed rest of the time.

Question 24.
Which type of unemployment is common in rural India?
Answer:
Seasonal unemployment and disguised unemployment.

Question 25.
Why is disguised unemployment most common in agriculture sector?
Answer:
Labourers in agriculture sector have zero marginal productivity i.e. even if few labourers are removed from agriculture there is no change in production. Hence, …

Question 26.
Give an example of disguised unemployment.
Answer:
To make optimum use of 10 hectare land a maximum of 5 labourers can be employed. But due to unavailability of work, anywhere else additionally 3 members of family also join the same work. Now, even after they join, the total production does not increase. Hence, the three additional labourers that joined are called disguised unemployed.

Question 27.
Define cyclical unemployment.
Answer:
Unemployment related to the cyclical trends in the industry or the business cycle is called the cyclical unemployment.

Question 28.
What do you mean by a capitalist economy?
Answer:
Capitalist economy is an economy where all factors of production are owned by private sector and decisions regarding production are taken by market mechanism, keeping in mind the objective of profit.

Question 29.
What is prosperity of nation?
Answer:
Prosperity is that stage of trade cycle in which business is at higher position and because of high demand, economy is profit oriented. There also exist high rate of capital investment and employment in the country.

Question 30.
What do you mean by depression in the economy?
Answer:
Lack of effective demand creates surplus of supply. This reduces the market price. This leads to low capital investment and unemployment. Such a situation is called depression in economy.

Question 31.
How does depression become a reason for unemployment?
Answer:
Depression in the economy leads to reduction in the demand of goods and services. Due to reduction in effective demand industries have to reduce production or shut down the production and many labourers are removed from work. Hence, …

Question 32.
List two countries facing cyclical unemployment.
Answer:
America and England

Question 33.
Give an example of an industry in India facing cyclical unemployment.
Answer:
Diamond Industry

Question 34.
Explain frictional unemployment.
Answer:
The unemployment that results from time spent between jobs when a worker is searching for, or transitioning from one job to another is called frictional unemployment.

Question 35.
Why is the word ‘friction’ used in frictional unemployment?
Answer:
The term ‘friction’ is used to describe the fact that labour markets do not immediately match up the job demand with job supply and hence a friction is created between the two.

Question 36.
Give an example of frictional unemployment.
Answer:
When smartphone replaced old mobiles phones, the laboures engaged in production and service of mobile phones became unemployed temporarily. This is an example of frictional unemployment.

Question 37.
Mention any three sources through which we can get information about unemployment in India.
Answer:

1. Planning Commission,
2. Central Statistical Organization and
3. National Sample Survey Organization.

Question 38.
Which committee was established to study the problems of unemployment?
Answer:
Bhagwati Committee

Question 39.
How many people were unemployed at the end of first five year plan, end of fifth five year plan and end of ninth five year plan?
Answer:
53 lakh people were unemployed at the end of first five year plan, 304 lakhs at the end of fifth five year plan and 348.5 lakh at the end of ninth five year plan.

Question 40.
What are the reasons for high unemployment in India?
Answer:

1. High rate of increase in labour supply,
2. Slow rise in employment opportunities,
3. Low saving and investment and
4. Limitation of education system.

Question 41.
What is labour supply?
Answer:
The total number of employed and unemployed people able and willing to work is called the labour supply of any economy.

Question 42.
What is supply of active laboureres?
Answer:
Supply of labourers who are capable, willing and ready to work at current wage rate is known as supply of active laboureres.

Question 43.
What is mobility of labour?
Answer:
When a person moves from one place to another or from one business to another business for employment it is known as mobility of labour.

Question 44.
How much is the increase of population of India each year?
Answer:
Each year, population of India increase by 1.70 crores.

Question 45.
How does population growth result to unemployment in the nation?
Answer:
The rising population keeps on rapidly supplying the labourers who are then in continuous search of employment. On the other hand, employment opportunities do not increase at the same rate. Hence, …

Question 46.
What was the growth rate of India at the end of 11th five year plan?
Answer:
7.8%

Question 47.
Define Green Revolution.
Answer:
Green Revolution is a term referring to the reformation of agricultural practices resulting in dramatic increases in crop yields.

Question 48.
Define capital intensive production technique.
Answer:
The production technique that makes more use of capital rather than labour for producing goods and services is called capital intensive production technique.

Question 49.
Define labour intensive production technique.
Answer:
The production technique that makes more use of labour rather than capital for producing goods and services is called labour intensive production technique.

Question 50.
Which production technique should Indian industries adopt to reduce unemployment?
Answer:
Labour intensive production technique.

Question 51.
In 2nd five year plan, which industries were encouraged to develop in India?
Answer:
Heavy and basic industries.

Question 52.
Give example of industries utilizing capital intensive production technique.
Answer:
Railway, irrigation, roads, construction and public sector industries.

Question 53.
How does education play an important role to increase unemployment in India?
Answer:
Present education system in India fails in mental and physical formation of human being. Even after acquiring education, the people are incapable of fulfilling the need of industries or generate self-employment and hence remain unemployed.

Question 54.
What is brain-drain?
Answer:
Brain-drain is one way movement where Indian intelligence/knowledge moves from India to foreign countries. Intelligent people migrate from India and use their brains i. e. intellect for other countries and India faces brain-drain.

Question 55.
List reasons for unemployment created by agriculture sector in India.
Answer:
Burden of population, lack of irrigation facilities, lack of agricultural finance, uncertainty of monsoon and few other uncertainties that led to poor development of agriculture.

Question 56.
Why labourers do not prefer migrating from one place to another for work?
Answer:
Due to social reasons, family bonding, language barrier, religion and cultural constraints, casteism, lack of awareness, lack of transportation facilities, and easy availability of suitable housing, etc. Moreover, people with high education do not prefer to work in rural areas.

Question 57.
State any four measures to reduce unemployment
Answer:

1. Population control,
2. Increase in rate of economic development,
3. Employment oriented planning and
4. Employment oriented education

Question 58.
How can population control reduce unemployment in India?
Answer:
Population control means taking effective steps to reduce the population of the nation which will in turn reduce labour supply. This reduction in labour supply for long term will help to reduce unemployment.

Question 59.
Mention three steps that should be taken in agriculture sector to reduce unemployment.
Answer:
Provision of irrigational facilities, advantage of green revolution in all states and easy provision of finance to farmers.

Question 60.
What steps are taken by the government to promote employment-oriented planning?
Answer:
Indian government is encouraging employment-oriented industries such as consumer goods and labour intensive industries, small and medium scale industries and business and trade, animal husbandry, dairy development, etc. to promote employment-oriented planning.

Question 61.
How can unemployment be reduced in education sector?
Answer:
Unemployment in education sector can be reduced by providing business-oriented education in the field of trade, commerce, business, agriculture and other fields to students. Moreover, practical training should be provided so that after getting such education students can easily get employment.

Question 62.
What is the main factor for less employment in rural areas?
Answer:
Poor infrastructural facilities like education, health, housing, electricity, roads, and technical training center.

Question 63.
State any two employment oriented schemes implemented in India.
Answer:
Mahatma Gandhi National Rural Employment Guarantee Act and Pandit Deendayal Upadhyay Shramev Jayate Yojna

Question 64.
What was the objective of MGNREGA?
Answer:
To provide employment to rural people residing in backward districts of country.

Question 65.
Which day is known as ‘Employment Day’?
Answer:
2nd February

Question 66.
What is the main objective of ‘Pandit Deendayal Upadhyay Shramev Jayate Yojna’?
Answer:
The main objective of this scheme is to provide the labourers of unorganized sector, health and security along with good management, skill development and labour welfare.

Question 67.
When did ‘Deendayal Upadhyay Gramin Kaushalaya Yojna (DUGKY)’ start?
Answer:
25th September, 2014

Question 68.
What was the main objective with ‘Deendayal Upadhyay Gramin Kaushalaya Yojna (DUGKY)’ scheme start?
Answer:
The main objective of this programme which was to provide employment to youth between age group of 18 to 35.

Question 69.
What is the objective of Deendayal Upadhyay Gramjyoti Yojna (DUGJY)?
Answer:
The objective of Deendayal Upadhyay Gramjyoti Yojna (DUGJY) is providing constant 24 × 7 electricity service in rural area

Question 70.
Which scheme was started to provide continuous electricity service in rural area.
Answer:
Deendayal Upadhyay Gramjyoti Yojna (DUGJY)

Question 71.
When and with what objective Prime increasing field productivity, making was started?
Answer:
on 1st July, 2015 with an objective of Minister Agricultural Irrigation scheme optimum use of available resources and planning of irrigational facilities at agricultural areas.

Long Answer Type Questions

Question 1.
How the nature of unemployment varies among countries?
Answer:
The nature of unemployment can differ in developed and developing economies.

Unemployment in developed countries:
Generally in developing countries the changes in trade cycles decrease the demand which then results in unemployment. Such an unemployment remains for short term. As a result, developed countries mostly witness cyclical and frictional unemployment. This can be solved by increasing effective demand.

Unemployment in developing countries:

• The labour supply constantly increases in developing countries like India that has huge population. On the contrary, because of structural limitations in our economy employment rises at a low rate. This gives rise to problem of long term unemployment.
• Hence, unemployment in developing countries can be solved by introducing economic, social and political changes and by developing extensive infra¬structural facilities.

Question 2.
Differentiate between unemployment in developed countries and unemployment in developing countries.
Answer:

Unemployment in developed countries	Unemployment in developing countries
1. Developed countries experience more of frictional unemployment and cyclical unemployment.	1. Developing countries experience more of disguised unemployment.
2. In developed countries unemployment lasts for a short duration.	2. In developing countries unemployment lasts for a very long period because the country needs to change the structure of the economy.
3. The economic growth developed countries is unemployment can be suitable economic policies.	3. In developing countries the population growth is high whereas economic development is low. Hence, unemployment rate remains high and cannot be solved easily.

Question 3.
State the various types of unemployment.
Answer:
Types of unemployment:

1. Open unemployment
2. Under-employment
3. Disguisea unemployment
4. Cyclical unemployment
5. Frictional unemployment

Question 4.
Explain briefly under unemployment.
Answer:
Under unemployment:

• When labourers cannot utilize their capabilities fully and for certain period accept less capable job they are said to be underemployed. For example, a computer engineer taking up job in a garage.
• When a labourer is willing and ready to work for certain years or days but gets work for less number of years or days even then he is said underemployed.
• For example, a worker working in industry or agricultural land gets work only for 5 hours instead of 8 hours then he is said to underemployed.
• Seasonal unemployment seen in agriculture sector in rural India is an example of underemployment the seasonal unemployment. The labour in agriculture sector gets work only during sowing and harvesting season and so he remains unemployed rest of the time.
• Another reason for this type of unemployment is that Indian agriculture is primarily based on monsoon.
• Hence, areas where irrigational facilities are not well developed, people belonging to agriculture sector face seasonal unemployment.

Question 6.
Give an example of disguised unemployment and explain it.
Answer:
Disguised unemployment:
1. When more than necessary people are employed in a work and if even by removing few of them from work the total production does not change then there exists disguised unemployment in that area.

2. As can be seen here the unemployment is hidden i.e. disguised. Even though people are employed they are employed unnecessarily. This type of unemployment is very common in developing economies like India. According to Rugnar Nurkes, “Given the resources and technique of production if the agriculture sector of over populated developing economies has zero marginal productivity then such countries have disguised unemployment”. From this definition it can be said that disguised unemployment has zero marginal productivity.

3. In India, population is constantly rising. Hence people who demand employment is also increasing at a higher rate. On the other hand, sectors other than agriculture are not quite well developed.

4. So, a very large number of people depend on agriculture for getting employed. The number i.e. the supply exceeds the demand and hence disguised unemployment takes place in agriculture.

5. Even if few labourers are removed from agriculture there is no change in production. This means that the marginal productivity of these labourers is zero. Since the marginal productivity of these labourers is zero they are said to be disguised unemployed.

6. Disguised unemployment can be seen even in urban areas in businesses and trades.

7. For example, the business where more than required family members work and the ones who are either less paid or not paid salaries suffer from disguised unemployment.
Example:

8. To make optimum use of 10 hectare land a maximum of 5 labourers can be employed. But due to unavailability of work, anywhere else additionally 3 members of family also join the same work. Now, even after they join, if the total production does not increase then, the three additional labourers that joined are called disguised unemployed.

9. Although these labourers visibly seem to be unemployed but because their marginal pro ctivity is zero they are part of disguised unemployment.

Question 7.
Marginal productivity of people suffering from disguised unemployment is zero. Explain.
Answer:

• In India the number of labourers i.e. the supply exceeds the demand. Even if some labourers are removed from agriculture the overall agricultural productivity will not be affected. Hence, rural areas experience disguised unemployment.
• Even if few labourers are removed from agriculture there is no change in production. This means that the marginal productivity of these labourers is zero.
• Hence, marginal productivity of people suffering from disguised unemployment is zero.

Question 8.
It is very difficult to measure disguised unemployment. Clarify the statement.
Answer:

• In India the number of labourers i.e. the supply exceeds the demand. Even if some labourers are removed from agriculture the overall agricultural productivity will not be affected. Hence, rural areas experience disguised unemployment.
• Now, although the fact is that even if few labourers are removed from agriculture there is no change in production i.e. the marginal productivity of these labourers is zero. But there is no way to determine who is not contributing to production.
• There is no systematic and sure way to calculate contribution of each person in the total production.
• Hence, it is very difficult to measure rate of disguised unemployment.

Question 9.
What steps should be taken to reduce (solve) the problem of cyclical unemployment.
Answer:
Cyclical unemployment

• Unemployment which is related to the cyclical trends in the industry or the business cycle is called the cyclical unemployment.
• In a capitalist economy people who invest and those who save are two different individuals. This creates disequilibrium between investor and saver.
• Due to this difference sometime the economy faces prosperity and at times depression.
• During prosperity there is more investment, production, income and employment in economy. On the other hand when economy faces depression then there is reduction in the demand of goods and services.
• Due to reduction in effective demand industries have to reduce production or shut down the production and many labourers are removed from work. Here depression is the reason for unemployment.
• Owing to such cyclic nature this unemployment is called cyclical or depressive unemployment or trade cycle unemployment.
• America experienced severe depression during 1929-30 and its effect was faced by many countries of the world. For this reason this depression was known as The Great Depression.
• Even today, sometimes developed countries like America and England face this type of unemployment.
• Cyclical unemployment is quite frequent in India due to India’s capitalist market mechanism. Indian diamond industry is one such example.

Solution:

• In order to solve the problem of cyclical unemployment, the state should invest in productive and developmental activities and provide employment to maximum people.
• Government should try to increase income level of people. With increase in income, effective demand will increase which in turn will increase production. When production will increase it will increase employment. This will then solve the problem of cyclical unemployment.

Question 10.
When did India make planned efforts to increase economic development and unemployment?
Answer:

• In 1951, government introduced the problem of economic development and unemployment in its first five year plan, but problem of unemployment became more severe.
• The level of unemployment at the end of the first five year and later plan can be understood from following information:
• At the end of first five year plan, 53 lakh people were unemployed. This increased to 304 lakh at the end of fifth five year plan and 348.5 lakh at the end of ninth five year plan.

Question 11.
Explain high rate of population growth as a cause of unemployment.
Answer:
High rate of population growth:

• India is a highly populated country that too with a high rate of population growth which further increases the population.
• The rising population keeps on rapidly supplying the labourers who are then in continuous search of employment. On the other hand, employment opportunities do not increase at the same rate.
• According to one estimate, in India each year there is increase in population by 1.70 crores which is more than total population of Australia.

Question 12.
How slow rise in employment opportunities became a reason for long term unemployment in India?
Answer:
Slow rise in employment opportunities:

• Increase in employment and economic growth are strongly related.
• During planning periods, economic growth increased continuously but we failed in creating equal number of employment opportunities. As a result, economic growth remained jobless growth.
• In first decade of planning India attained 3.5 percent of economic growth. This growth rate increased to 7.6% in 10th fjVe year plan and 7.8% in 11*h five year plan. We could not increase employment to meet this growth.
• Moreover, green revolution in agriculture sector remained limited to certain areas. The sectors other than agriculture observed slow growth. So unemployment increased in other sectors.

Question 13.
India’s lack of efforts in providing vocational training to its people paved way for unemployment. Explain the statement.
Answer:
Lack of vocational training:

• One of the reasons for rise in unemployment is the deficient educational system.
• Indian education system is unable to produce the labour which can cater the ever changing needs and methods of job market.
• India in order to achieve high economic growth rate adopted modernization of industries and agriculture but failed to produce labour equipped with necessary knowledge and skills that can match up the modernization.
• India did not provide any vocational training to the labourers to adapt to modernization and hence unemployment increased.

Question 14.
How capital intensive production technique led to unemployment in India?
Answer:
Capital intensive production technique:

• In India, land is scarce whereas labour is abundant.
• In such a condition India should have adopted labour intensive production techniques to grovide employment at a large scale. But, from second five year plan, India focused on developing of heavy and basic industries which are capital intensive and not labour intensive.
• Even while preparing plans, India gave more importance to capital intensive production techniques rather than labour intensive techniques.
• Mechanization was given more importance in industries as well as in agriculture
• Even in industries in order to increase productivity and to remain hassle free from labour problems industrialists adopt such policies and practices where in work can be done with minimal labour.
• Railway, irrigation, roads, construction, public sector, etc. all use capital intensive techniques of production. As a result unemployment problem becomes intense.
• Owing to these reasons even the Bhagwati Committee and Venkataraman Committee which were formed to study unemployment recommended using less of mechanization.

Question 15.
‘First gold-drain and now brain-drain’. Explain the statement.
Answer:

• India has not rightly planned for managing its human resource.
• India failed to plan the type of labour and their quantity which it will need and the type of education and training that should be provided to match the need.
• As a result, due to lack of employment opportunities many of our doctors and engineers with high degree migrate to foreign countries because they are unable to get suitable work in India.
• The way there existed one-way movement of gold i.e. ‘drain of gold’ from India to England during the British rule, today we can witness one-way movement of knowledge i.e. ‘brain-drain’ from India to foreign countries.

Question 16.
Explain how negligence towards agriculture gave rise to large scale unemployment in India.
Answer:
Negligence towards agriculture sector:

• India is an agricultural country and most of its population resides in villages. Naturally, this population is dependent on agriculture for employment. So, agriculture planning should be such which can generate employment first for the rural youths.
• During the planning period, India neglected agriculture and focused more on other sectors. Agriculture remained underdeveloped and gave rise to large scale unemployment.
• Although India achieved Green Revolution in agriculture but its benefit could be enjoyed by only a handful of states like Punjab and Haryana.
• On the top of this, burden of population, lack of irrigation facilities, lack of agricultural finance, uncertainty of monsoon and few other uncertainties that led to poor development of agriculture.
• The non-agricultural sectors are also not developed in rural areas. Hence, rural youths having no option to earn had to migrate to cities in search of employment. Also, they face high rate of seasonal and disguised unemployment.

Question 17.
Write a short note on population control as a measure to control unemployment.
Answer:
Population control:

• The high population growth rate of India has increased the problem of unemployment and made it more serious.
• The fast growing population keeps on supplying labour in the market. These labourers then demand work from the economy.
• On the other hand due to slow economic growth, enough opportunities cannot be raised for the large pool of labourers. This results in rise in unemployment.

Solution:

• Effective steps should be taken to control population growth.
• This will reduce the supply of labour on a long term and hence solve the problem of unemployment.
• Moreover, when population will be less country’s resources will become surplus. This will then lead to increase in capital investment which in turn will increase employment opportunities.
• If population control is done effectively then in long term the productive age- group i.e. people belonging to the age group of 15 to 64 years can be better placed to work.

Question 18.
How can increasing economic development help to curb unemployment?
Answer:
Increase in rate of economic development:

• In Initial years of planning the rate of economic development use to be as 3 to 3.5%. This rate later increased.
• Increasing the economic development is one of the solutions to manage unemployment.

Solution:
If economic development increases at a higher rate, then employment opportunities can also increase at higher rate. This will solve the problem of unemployment.

• In order to achieve high rate of economic development, there should be a tight and systematic co-ordination between various economic sectors.
• Efforts should be made to increase capital investment in public, private and cooperative sector.
• In agriculture sector irrigational facilities and other required facilities should increase and agricultural rate should be kept high.
• Efforts should be made so that advantage of green revolution can be reaped by every state and village. This will help in achieving high economic development and thus employment.

Question 19.
Write a short note on employment-oriented planning as a measure to control unemployment.
Answer:
Employment oriented planning:

• During the initial years of planning the government gave more importance to economic development. This was done by giving more importance in developing key industries in public sector.
• This approach was needed to develop a strong foundation of industrialization.

Solution:

• In the present situation special emphasis should be given on ‘employment-oriented planning’.
• In this regard, India is already encouraging employment-oriented industries such as consumer goods and labour intensive industries, small and medium scale industries and business and trade, animal husbandry, dairy development.
• Doing so will increase the production of consumer goods, employment and bring economic stability.
• Employment oriented planning can also be done in construction sector to increase employment.
• State can also coordinate between capital intensive and labour intensive production techniques. It should also give more emphasis to labour intensive production techniques so that a large number of people can be employed.

Question 20.
Why and how should government encourage developing cottage and small scale industries as a means to raise employment
Answer:
Development of cottage and small scale industries:
Cottage and small scale sector have capacity to create employment that too with minimal skills and low investment.

Solution:

• Enough encouragement and support should be given to develop cottage and small scale industries.
• At a given amount of capital, a small scale industry can create 7.5 times more employment than a big industry.
• India is a capital scarce and labour intense country. So, development of cottage and small scale industries should be accepted as a best alternative and special initiative should be taken for its development.
• Hence, while framing the industrial policies, these industries are given good importance and various measures are taken for their development.
• Steps like reserving production of certain goods for small scale industries, providing monetary, technical and managerial assistance by the state are few of the steps taken to develop and encourage these industries.

Question 21.
State and explain the benefits of extending infrastructural facilities at rural level.
Answer:
Extending infrastructural facilities:
It is a known fact that Indian rural areas have ioss employment opportunities than urban areas. One of the major reasons responsible for this is poor infrastructural facilities in rural area.

Solution:

• Government should make effort to extend infrastructural services like education, health, housing, electricity, roads, technical training center at rural areas. By doing so, people residing in rural areas can get employment near their residence itself.
• Development of infrastructural facilities will give rise to new employment opportunities. Moreover, this will also help in generating employment in agriculture and allied sector.

Question 22.
State and explain Mahalanobis’ views on agricultural productivity.
Answer:

• Statistician RC. Mahalanobis believed that if planned properly than agriculture has more ability to provide employment than any other sector.
• As per Mahalanobis, in India by investing Rs. 1 crore in agriculture sector 40,000 people can be employed and production can be increased by 5.7%. On the other hand, by investing Rs. 1 crore in big industries only 500 people can be employed and production can be increased by 1.4%.
• From the estimate it is clear, agriculture sector can create more employment than industry.

Question 23.
When did India start making systematic efforts to reduce unemployment? State few programmes that it initiated in this regard.
Answer:

• In India, the first five year plan was started in 1951.
• At that time, the planners thought that their systematic steps of planning will increase economic development which then will solve the problem of unemployment. But, this proved wrong in the first four five year plans.
• As a result from fifth five year plan, government started various employment oriented schemes to solve the problem of unemployment.

Some of these schemes were:
a. Integrated Rural Development Programme
b. Food against Work
c. Jawahar Rojgar Yojna
d. Nehru Rojgar Yojna
e. Suvarna Jayanti Gram Swarojgar Yojna
f. Suvarna Jayanti Sheher Rojgar Yojna
g. Training to rural youth for self-employment.
h. National Rural Employment Guarantee Programme
i. Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA)
j. Skill Development Programme
k. Skill India
l. Make in India
m. Mudra, etc.

Question 24.
Write a brief note on Pandit Deendayal Upadhyay Shramev Jayate Yojna.
Answer:
Pandit Deendayal Upadhyay Shramev Jayate Yojna (PDUSJY):

• This scheme was started on 16th October, 2014.
• The main objective of this scheme was to provide the labourers of unorganized sector, health and security along with good management, skill development and labour welfare.
• The scheme also aims at establishing suitable environment for industrial development.

Question 25.
The problem of unemployment is quite serious in India. Explain.
Answer:

• India has a very large population. So, every year there is a large supply of labourers in the market which keeps on increasing.
• On the contrary, because of structural limitations in our economy, employment rises at a low rate. This gives rise to problem of long term unemployment.
• Such a type of unemployment cannot be solved overnight. It can be solved by bringing major changes in the structure of the economy. This can be done only introducing long term economic, social and political changes and by developing extensive intra-structural facilities.
• Hence, the problem of unemployment is quite serious in India.

Question 26.
Over and above economic problem, unemployment is also a serious social problem. Explain.
Answer:
An unemployed person is economically dependent on others.

• Since he does not earn he cannot spend. This reduces the sale of goods in the market which then decreases production, economic growth and consumption.
• An unemployed person cannot live in society with dignity. Such people lose motivation and vigour to live a good, healthy and successful life.
• In many cases such people even turn to theft, robbery and other crimes to earn their respect and money. This disturbs the social set-up.
• Hence, the problem of unemployment may not only restrict to an economic problem but may also lead to social, ethical and political problems.

Question 27.
India faces problem of educated unemployment in urban areas. Explain.
Answer:

• Present education system provides only bookish knowledge and produce clerks.
• As a result, even after being a commerce and management graduate the person does not become capable enough for self-employment.
• People from rural areas migrate to cities with a hope for better education. Even the urban youths put hard efforts to get educated. But they do not receive any industry specific knowledge and education.
• Over and above this due to lack of proper manpower planning, even several doctors and engineers remain unemployed.
• Hence, India faces problem of educated unemployment in urban areas.

Question 28.
Differentiate between seasonal unemployment and disguised unemployment.
Answer:

Seasonal unemployment	Disguised unemployment
1. When a worker gets employment during certain season only and remains unemployed rest of the time of the year it is called seasonal unemployment.	1. When more than necessary people are employed in a work and if even by removing few of them from work the total production does not change then it is called disguised unemployment.
2. It is easy to measure seasonal unemployment.	2. It is difficult to measure disguised employment.
3. Such unemployment lasts for some time but every year.	3. Such unemployment lasts for a very long time.
4. Such unemployment can be reduced in rural areas by providing/improving irrigational facilities, producing 2-3. crops a year, etc.	4. Such unemployment can be reduced at rural areas by shifting some labourers from agriculture to other sectors.

Multiple Choice Questions

Question 1.
Which of the following is a social problem faced by India?
(A) Inflation
(B) Unemployment
(C) Depression
(D) Illiteracy
Answer:
(D) Illiteracy

Question 2.
_________ has become a global problem today.
(A) Poverty
(B) Unemployment
(C) Gender inequality
(D) Depression
Answer:
(B) Unemployment

Question 3.
What is unwilling unemployment if the person is not getting work?
(A) There is no readiness or no eagerness to work at the current wage rate
(B) There is readiness or eagerness to work at the current wage rate
(C) There is no readiness but only eagerness to work at current wage rate
(D) There is readiness but no eagerness to work at current wage rate
Answer:
(B) There is readiness or eagerness to work at the current wage rate

Question 4.
Which age group of people is included in active workforce?
(A) 10 – 18.years
(B) 15 – 64 years
(C) 64 – 72 years
(D) Above 18 years
Answer:
(B) 15 – 64 years

Question 5.
Which of the following is not a measure of unemployment given by Shri Krishna committee – 2011-12?
(A) Time
(B) Income
(C) Agreement
(D) Population
Answer:
(D) Population

Question 6.
If a person has willingness and capacity to work but does not get work of more than _________ he is considered to be ‘intensively unemployed’.
(A) 28 hours a week
(B) 24 hours a week
(C) 40 hours a month
(D) 36 hours a week
Answer:
(A) 28 hours a week

Question 7.
Which is the type of unemployment if a person who is a C.A works as a clerk?
(A) Open unemployment
(B) Underemployment
(C) Disguised unemployment
(D) Frictional unemployment
Answer:
(B) Underemployment

Question 8.
What is the type of unemployment where individuals are ready to work at current wage rate, and possess qualification too, but do not get any job?
(A) Open unemployment
(B) Underemployment
(C) Frictional unemployment
(D) Disguised unemployment
Answer:
(A) Open unemployment

Question 9.
Where do we see more open unemployment?
(A) Towns
(B) Villages
(C) Open unemployment is seen in the entire nation
(D) Both (A) and (B)
Answer:
(A) Towns

Question 10.
Open unemployment can be seen among which age group?
(A) Above 18 years
(B) 15 – 25 years
(C) 25 – 35 years
(D) 40 – 50 years
Answer:
(B) 15 – 25 years

Question 11.
Registration in employment exchange center is a method of getting proper number of people.
(A) Underemployed
(B) Open unemployed
(C) Frictional unemployed
(D) Disguised unemployed
Answer:
(B) Open unemployed

Question 12.
In rural India, seasonal unemployment is a type of
(A) Underemployment
(B) Frictional unemployment
(C) Open unemployment
(D) Disguised unerpployment
Answer:
(A) Underemployment

Question 13.
Which type of unemployment has zero marginal productivity?
(A) Underemployment
(B) Frictional unemployment
(C) Cyclical unemployment
(D) Disguised unemployment
Answer:
(D) Disguised unemployment

Question 14.
Which type of unemployment is caused due to depression in the economy?
(A) Frictional unemployment
(B) Cyclical unemployment
(C) Underemployment
(D) Open unemployment
Answer:
(B) Cyclical unemployment

Question 15.
When did America experience the great depression?
(A) 1934
(B) 1935
(C) 1929
(D) 1928
Answer:
(C) 1929

Question 16.
Which type of unemployment is seen in India due to capitalist market mechanism?
(A) Cyclical unemployment
(B) Open unemployment
(C) Frictional unemployment
(D) Underemployment
Answer:
(A) Cyclical unemployment

Question 17.
In which of the following industry, can we see the effects of cyclical unemployment?
(A) Chemical industry
(B) Diamond industry
(C) Banking and insurance
(D) All of these
Answer:
(B) Diamond industry

Question 18.
Which is the type of unemployment is said to exist if unemployment arises due to change in technology?
(A) Cyclical unemployment
(B) Open unemployment
(C) Frictional unemployment
(D) Underemployment
Answer:
(C) Frictional unemployment

Question 19.
Which of the following committees was established to study the problem of unemployment?
(A) Bhagwati committee
(B) Dutt committee
(C) G.V. Ramkrishna committee
(D) Subbrao committee
Answer:
(A) Bhagwati committee

Question 20.
What was the total number of people unemployed at the end of ninth five year plan?
(A) 304 lakhs
(B) 349 lakhs
(C) 350 lakhs
(D) 360 lakhs
Answer:
(B) 349 lakhs

Question 21.
What is the estimation of increase of population each year in India?
(A) 1 crore
(B) 1.5 crores
(C) 1.7 crores
(D) 1.9 crores
Answer:
(C) 1.7 crores

Question 22.
Which sector does green revolution relate to?
(A) Industries
(B) Agriculture
(C) Milk (dairy)
(D) None of these
Answer:
(B) Agriculture

Question 23.
What was the growth rate of India at the end of 11 ^ five year plan?
(A) 7.6%
(B) 7.5%
(C) 7.7%
(D) 7.8%
Answer:
(D) 7.8%

Question 24.
Which of the following techniques can solve the problem of unemployment?
(A) Labour intensive production technique
(B) Capital intensive production technique
(C) Both labour and capital intensive techniques together
(D) Education oriented
Answer:
(A) Labour intensive production technique

Question 25.
Why are dexter labourers few in India?
(A) Lack of vocational education
(B) Lack of manpower planning
(C) As Indians have low rate of savings and high expenditure
(D) Due to low productivity of public sector
Answer:
(A) Lack of vocational education

Question 26.
What is one sided movement of Indian intelligence from Jndia to foreign countries known as?
(A) Drain of human resource and values
(B) Drain of brain
(C) Drain of employment
(D) Drain of intelligence
Answer:
(B) Drain of brain

Question 27.
Which of the following sectors was given more importance after Indian independence?
(A) Agriculture sector
(B) Public sector
(C) Private sector
(D) Balance growth of all sectors
Answer:
(B) Public sector

Question 28.
Which state got maximum benefit of Green Revolution?
(A) Uttar Pradesh
(B) Gujarat
(C) Haryana
(D) Kerala
Answer:
(C) Haryana

Question 29.
Which of the following are reasons for poor development of agriculture sector in India?
(A) Lack of agricultural finance
(B) Lack of irrigation facilities
(C) Burden of population
(D) All of these
Answer:
(D) All of these

Question 30.
Which of the following has led to less mobilization of labourers?
(A) Lack of education
(B) Family relations
(C) Lack of proper food
(D) Lack of friendly atmosphere
Answer:
(B) Family relations

Question 31.
Why industrialists do not wish to set up industry in rural areas?
(A) There are several land disputes at village level
(B) Industrialists do not get skilled labour
(C) Lack of continuous electricity
(D) Government does not give proper support at village level
Answer:
(C) Lack of continuous electricity

Question 32.
In which five year plan – the prime objective was to reduce unemployment?
(A) First
(B) Fifth
(C) Ninth
(D) Eleventh
Answer:
(B) Fifth

Question 33.
For employment oriented planning, the state should encourage
(A) Labour intensive production technique
(B) Small scale and cottage industries
(C) Animal husbandry and dairy development
(D) All of these
Answer:
(D) All of these

Question 34.
In which of the following years, the objective of the education policy was tc have productive education which collaborates employee generation with industries?
(A) 2014
(B) 2015
(C) 2016
(D) 2011
Answer:
(B) 2015

Question 35.
With same capital investment, small scale industries can create times more employment than big industries.
(A) 6.5
(B) 7.5
(C) 8.5
(D) 9.5
Answer:
(B) 7.5

Question 36.
Which type of unemployment can we majorly see in agriculture sector?
(A) Underemployment
(B) Disguised unemployment
(C) Cyclical unemployment
(D) Frictional unemployment
Answer:
(B) Disguised unemployment

Question 37.
According to P.C Mahalnobis, investing Rs. One crore in agriculture sector generates employment for about people.
(A) 500
(B) 1000
(C) 10000
(D) 40000
Answer:
(D) 40000

Question 38.
Investing Rs. One crore in industrial sector generates employment for _________ people.
(A) 500
(B) 1000
(C) 10000
(D) 40000
Answer:
(A) 500

Question 39.
Which of the following is a yojna set up after the fifth five year plan to solve unemployment problem in India?
(A) Food against work
(B) Jawahar Rojgar Yojna
(C) Gramin bhandaran Yojna
(D) Both (A) and (B)
Answer:
(D) Both (A) and (B)

Question 40.
Which of the following is not an employment oriented scheme?
(A) Make in India
(B) Skill India
(C) Skill development programme
(D) Digital India
Answer:
(D) Digital India

Question 41.
When was National Rural Employment Guarantee Act implemented?
(A) February, 2006
(B) October, 2009
(C) October, 2014
(D) September, 2009
Answer:
(A) February, 2006

Question 42.
What was the objective of National Rural Employment Guarantee Act?
(A) To provide labourers health and security
(B) To provide employment to youth i.e. 18-25 years of age
(C) To provide employment to rural people residing in backward areas
(D) To migrate rural people to urban areas and provide employment
Answer:
(C) To provide employment to rural people residing in backward areas

Question 43.
Which day did the government declare as ‘employment day’?
(A) 2nd October
(B) 2nd-February
(C) 16th October
(D) 16th February
Answer:
(B) 2nd-February

Question 44.
Under MGNREGA scheme, how much proportion of employment is reserved for females?
(A) 1/3rd
(B) 2/3rd
(C) 1/4th
(D) 1/5th
Answer:
(A) 1/3rd

Question 45.
Under which of the following schemes, job cards have been provided to labourers?
(A) Pandit Deendayal Upadhyay Shramev Jayate Yojna
(B) Deendayal Upadhyay Gramin Kaushalya Yojna
(C) Mahatma Gandhi National Rural Employment Guarantee Act
(D) Deendayal Upadhyay Gramjyoti Yojna
Answer:
(C) Mahatma Gandhi National Rural Employment Guarantee Act

Question 46.
Job cards provided to labourers are valid for how many years?
(A) 1 year
(B) 5 years
(C) 3 years
(D) 7 years
Answer:
(B) 5 years

Question 47.
When did Pandit Deendayal Upadhyay Shramev Jayate Yojna start?
(A) 25th September, 2014
(B) 16th October, 2014
(C) 1st July, 2014
(D) 2nd October, 2009
Answer:
(B) 16th October, 2014

Question 48.
When did Deendayal Upadhyay Gramin Kaushalya Yojna start?
(A) 25th September, 2014
(B) 16th October, 2014
(C) 1st July, 2014
(D) 2nd October, 2009
Answer:
(A) 25th September, 2014

Question 49.
What was the objective of Deendayal Gramjyoti Yojna?
(A) To provide labourers – health and security
(B) To provide employment to youth i.e. 18-25 years of age
(C) To provide employment to rural people residing in backward areas
(D) To provide constant 24 x 7 electricity service in rural areas
Answer:
(D) To provide constant 24 x 7 electricity service in rural areas

Question 50.
What was the main objective of Deendayal Upadhyay Gramin Kaushalya Yojna?
(A) To provide labourers – health and security
(B) To provide employment to youth i.e. 18-25 years of age
(C) To provide employment to rural people residing in backward areas
(D) To migrate rural people to urban areas and provide employment
Answer:
(B) To provide employment to youth i.e. 18-25 years of age

Question 51.
When did Prime Minister Agricultural Irrigation Programme start?
(A) 25th September, 2014
(B) 16th October, 2014
(C) 1st July, 2015
(D) 10st July, 2014
Answer:
(C) 1st July, 2015