1.

Consider the following commi ees

i) Dr. Y. K. Alagh
ii) D. T. Lakdawala,
iii) C. Rangarajan

Which of the commi ees given above are cons tuted to es mate the number of poor in India?

A) Only I and ii
B) Only iii
C) Only I and iii
D) All the above

Ans: D

The various expert groups cons tuted by the Planning Commission a er independence are Expert
Group (1962), Working Group under Dr. Y. K. Alagh (1977), Expert Group (1989) under Prof. D. T.
Lakdawala, Prof. Suresh D. Tendulkar (2005), C. Rangarajan (2012). Lakdawala, Tendulkar and
Rangarajan have used the consump on expenditure (per capita consump on over a month) es mates
from the sample surveys of NSSO to es mate the number of poor.

2. As per the Tendulkar report, the percentage of the people who are considered to be Below
Poverty Line (BPL) in 2011-12 is?
A) 25.6 percent
B) 26.0 percent
C) 21.9 percent
D) 15.2 percent

Ans: C

As per the Tendulkar report, if people are spending less than Rs. 27 per day in rural area and Rs. 33 per
day in urban area, then they will be considered BPL and arrived at a cut off of 21.9% of the popula on
as BPL in 2011-12. However, this amount was such low that it immediately faced a backlash from all
sec on of media and society and the government appointed another commi ee under C. Rangarajan
to review the poverty es ma on methodology.

3. Consider the following statements regarding poverty rate in India

i) The World Bank defines extreme poverty as people living on less than $5.0 per day (in PPP
exchange rate).
ii) According to the Rangarajan commi ee the percentage of the people who are considered
to be Below Poverty Line (BPL) in 2011-12 is 29.5 percent.

Which of the statements given above are incorrect?

A) Only i
B) Only ii
C) Both
D) None

Ans: A

However, this amount was such low that it immediately faced a backlash from all sec on of media and
society and the government appointed another commi ee under C. Rangarajan to review the poverty
es ma on methodology. Rangarajan commi ee raised these limits to Rs. 32 per day in rural area and
Rs. 47, per day in urban area, and worked out poverty line of 29.5% in 2011-12. The World Bank defines
extreme poverty as people living on less than $1.9 per day (in PPP exchange rate).

4. Presently, in India, iden fica on of poor is done by which among the following based on
informa on from Below Poverty Line (BPL) censuses of which the latest is the Socio-Economic
Caste Census 2011 (SECC 2011)?
A) Union government
B) State government
C) NITI Aayog
D) Ministry of Rural Development

Ans: B

The World Bank defines extreme poverty as people living on less than $1.9 per day (in PPP exchange
rate). Presently, in India, iden fica on of poor is done by the State Governments based on informa on
from Below Poverty Line (BPL) censuses of which the latest is the Socio-Economic Caste Census 2011
(SECC 2011).

5. Consider the following statements regarding na onal sample survey

i) The Na onal Sample Survey (NSS) is a na onal socioeconomic survey conducted in annual
rounds with a cycle of rota ng topics.
ii) The household Consump on Expenditure Survey (CES) is the annual rounds of Na onal
Sample Survey.

Which of the statements given above are correct?

A) Only i
B) Only ii
C) Both
D) None

Ans: A

The Na onal Sample Survey (NSS) is a na onal socioeconomic survey conducted in annual rounds with
a cycle of rota ng topics. For example, the purpose of the 71st round of the Na onal Sample Survey
(NSS) conducted in 2014 was to develop indicators on health and educa on. The purpose of the 68th
round (July 2011 – June 2012) of Na onal Sample Survey was household consump on expenditure.
The household Consump on Expenditure Survey (CES) generally comes a er every five years
(quinquennial) during these annual rounds of NSS.

6. Consider the following statements regarding the poverty ra o in India

i) Sustainable Development Goal (SDG) have an aim to halving poverty by 2050.
ii) According to the UN Mul dimensional Poverty Index, more than 41 crore people exited
poverty between 2005-06 and 2019-21.

Which of the statements given above are correct?

A) Only i
B) Only ii
C) Both
D) None

Ans: B
Demonstra ng the on-track progress to a ain Sustainable Development Goal (SDG) of halving poverty
by 2030, more than 41 crore people exited poverty between 2005-06 and 2019-21 according to the
UN Mul dimensional Poverty Index.

7. Asser on (A): Central Government had introduced "Fixed term employment" provisions in the
exis ng labour acts with the consent of States.

Reason (R): The new Industrial Rela ons Code 2020 which was passed by the parliament recently has
included fixed term employment for all industries.

Select the answer using the codes given below

A) Both A and R are true, and R is proper explana on of A

B) Both A and R are true, and R is not proper explana on of A
C) Only A is true
D) Only R is true

Ans: C

Fixed Term Employment is a contract in which an enterprise hires a labour for a specific period of me
or a specific task (ex. a project) and the payment is fixed in advance and is not altered ll the term
expires. Such contracts are not given for rou ne jobs and are usually given out for jobs which are
temporary in nature. Central Govt. had introduced "Fixed term employment" provisions in the exis ng
labour acts but States did not no fy that provision. The new Industrial Rela ons Code 2020 which was
passed by the parliament recently has included fixed term employment for all industries which will
now ensure a pan-India implementa on.

8. Consider the following statements regarding the mul -dimensional poor

i) The Mul dimensional Poverty Index complements the interna onal US$ 1.90-a-day
poverty line by iden fying who is mul dimensionally poor.
ii) According to the on Mul dimensional Poverty Index 2022 report, 11.4 per cent of the
popula on in India is mul dimensionally poor.

Which of the statements given above are incorrect?

A) Only i
B) Only ii
C) Both
D) None

Ans: B

The 2022 report of the UNDP on MPI was released in October 2022 and covers 111 developing
countries. As regards India, the survey data for 2019-21 has been used. Based on these es mates, 16.4
per cent of the popula on in India (228.9 million people in 2020) is mul dimensionally poor while an
addi onal 18.7per cent is classified as vulnerable to mul dimensional poverty (260.9 million people in
2020). The MPI complements the interna onal US$ 1.90-a-day poverty line by iden fying who is
mul dimensionally poor and shows the composi on of mul dimensional poverty.

9. Employment and Unemployment Surveys conducted were the primary source of labour
market data at Na onal and State level in India by?
A) NITI Aayog
B) Ministry of Labour and Employment
 C) NSSO
D) Labour Bureau

Ans: C

Employment and Unemployment Surveys (EUS) conducted by NSSO were the primary source of labour
market data at Na onal and State level in India. Regular EUS were conducted quinquennially (a er
every five years) since 1972.

10. Asser on (A): The Ministry of Sta s cs and Programme Implementa on cons tuted a
commi ee on Periodic Labour Force Survey (PLFS).

Reason (R): Na onal Sta s cs Office (NSO) is conduc ng Periodic Labour Force Survey to produce
annual sta s cs of employment and unemployment characteris cs for both rural and urban areas,
along with quarterly es mates for urban areas.

Select the answer using the codes given below

A) Both A and R are true, and R is proper explana on of A

B) Both A and R are true, and R is not proper explana on of A
C) Only A is true
D) Only R is true

Ans: A

The Ministry of Sta s cs and Programme Implementa on cons tuted a commi ee on Periodic Labour
Force Survey (PLFS). Now, Na onal Sta s cs Office (NSO) is conduc ng PLFS to produce annual
sta s cs of employment and unemployment characteris cs for both rural and urban areas, along with
quarterly es mates for urban areas. The first annual report based on the data collected in PLFS during
July 2017- June 2018 was published in May 2019.

11. Consider the following statements regarding the under employment

i) Skilled workers in low-paying jobs
ii) Skilled workers in low-skill jobs
iii) Part- me workers preferring full- me hour job

The most common type of underemployed workers is listed in which of the situa on given above?

A) Only i
B) Only iii
C) Only I and ii
D) All the above

Ans: D

Underemployment is a situa on in which a worker is employed, but not in the desired capacity,
whether in terms of compensa on, skill level, experience, educa on or their availability. While not
technically unemployed, the underemployed are o en compe ng for available jobs. Underemployed
workers can be divided into several categories. The most common type of underemployed workers is
listed below: Skilled workers in low-paying jobs  Skilled workers in low-skill jobs  Part- me workers
preferring full- me hour job.

12. Consider the following statements regarding the absolute poverty ra o in India
 i) The expert commi ee cons tuted by the planning commission under C. Rangarajan has
redefined the poverty line in India.
ii) According to the report of the commi ee, the new poverty line should be Rs. 56 in rural
areas and Rs. 76 in urban areas at 2011-12 prices.

Which of the statements given above are incorrect?

A) Only i
B) Only ii
C) Both
D) None

Ans: B

The absolute poverty is with reference to consump on based on a set income level. The expert
commi ee cons tuted by the planning commission under C. Rangarajan has redefined the poverty
line in India. According to the report of the commi ee, the new poverty line should be Rs. 32 in rural
areas and Rs. 47 in urban areas at 2011-12 prices. Those who cannot afford this level of consump on
are said to be poor.

13. Consider the following statements regarding the poverty gap

i) Poverty gap is a measure of the intensity of poverty among the poor.
ii) The poverty gap indicator measures only magnitude of poverty among the poor.

Which of the statements given above are correct?

A) Only i
B) Only ii
C) Both
D) None

Ans: A

Poverty gap is a measure of the intensity of poverty among the poor. The difference between the
average income among the poor and the poverty line. This indicator measures the magnitude of
poverty as well as its intensity.

14. Currently which among the following is the nodal agency to define the new poverty line in
India?
A) PMO
B) NITI Aayog
C) Central Sta s cal Agency
D) Na onal Sta s cal Office

Ans: B

Defining a poverty line has always been a controversial issue in India. The new NDA government has
not accepted both the above Rangarajan and Tendulkar commi ee es mates on the poverty line and
has tasked NITI Aayog to define the new poverty line. So, the present situa on is NITI Aayog has
cons tuted a commi ee for the same but has informally supported the Tendulkar commi ee
es mates on poverty line.
 15. The ministry of housing and urban poverty allevia on has set up a commi ee to look into the
various aspects of slum sta s cs and census and issues regarding the slum census, it was
headed by?
A) Dr Shak kant Das
B) Dr Hima Subrahmanyan
C) Pronab Sen
D) Urjit Patel

Ans: C

The ministry of housing and urban poverty allevia on has set up a commi ee to look into the various
aspects of slum sta s cs and census and issues regarding the slum census in 2011 under the Pronab
Sen commi ee. The commi ee projected the slum popula on in the country for the year 2011 at 93.06
million.

16. Consider the following commi ees on poverty in India

i) Lakdawala,
ii) Tendulkar
iii) Rangarajan

Which of the commi ees given above have used the consump on expenditure (per capita
consump on over a month) es mates from the sample surveys of NSSO to es mate the number of
poor?

A) Only I and ii
B) Only ii and iii
C) Only iii
D) All the above

Ans: D

The Planning Commission has cons tuted various Working Group/ Task Force/ Expert Groups
(consis ng of eminent experts in the field) from me to me to revisit the methodological issues
related to the measurement of poverty so as to make the es mates more relevant to the contemporary
economic situa on. The various expert groups cons tuted by the Planning Commission a er
independence are Expert Group (1962), Working Group under Dr. Y. K. Alagh (1977), Expert Group
(1989) under Prof. D. T. Lakdawala, Prof. Suresh D. Tendulkar (2005), C. Rangarajan (2012). Lakdawala,
Tendulkar and Rangarajan have used the consump on expenditure (per capita consump on over a
month) es mates from the sample surveys of NSSO to es mate the number of poor.

17. The socio economic and caste census-2011 was conducted for the 2011 census of India. Which
among the following is the nodal agency to conduct the socio economic and caste census in
India?
A) NITI Aayog
B) Na onal Sta s cal Office
C) Ministry of Rural Development
D) Ministry of Finance

Ans: C

The socio economic and caste census-2011 was conducted for the 2011 census of India. It was the first
paperless census in India. It was also the first ever caste-based census since the 1931 census in India.
The socio economic and caste census was conducted by the three separate authori es under the
overall coordina on of the ministry of rural development.

18. Consider the following regarding the poverty es ma on in India

i) Head Count Ra o
ii) Calorie Intake
iii) Household Consump on Expenditure

Which of the above methods have been used to es mate poverty in India?

A) Only iii
B) Only I and ii
C) Only I and ii
D) All the above

Ans: D

At present Household Consump on Expenditure method is used to es mate poverty in India. The
current methodology for poverty es ma on is based on the recommenda ons of an Expert Group
(Tendulkar Commi ee), which was cons tuted in 2005 and submi ed its report in 2009. The Head
Count Ra o (HCR) is the popula on propor on that exists, or lives, below the poverty threshold. In
India, the HCR is obtained using urban and rural poverty lines which are applied on the MPCE
distribu on of the States. The aggregated BPL popula on of the States is used to obtain the final all-
India HCR and poverty lines in urban and rural areas.

19. Consider the following statements regarding the recommenda ons of Tendulkar Commi ee
i) Tendulkar Commi ee recommended a shi away from basing the poverty lines from
nutri onal outcomes and towards target calorie intake instead.
ii) Instead of two separate poverty line baskets (PLBs) for rural and urban poverty lines, it
recommended a uniform all-India PLB across rural and urban India.

Which of the statements given above are incorrect?

A) Only i
B) Only ii
C) Both
D) None

Ans: A

In the chairmanship of Suresh Tendulkar, the Government of India cons tuted a commi ee in 2005 to
set new standards for the es ma on of popula on living below the poverty line. The Tendulkar
Commi ee submi ed its report in 2009. The Commi ee suggested several changes to the way poverty
was measured. Firstly, it recommended a shi away from basing the poverty lines from calorie norms
used in all poverty es mates since 1979 and towards target nutri onal outcomes instead. Secondly,
instead of two separate poverty line baskets (PLBs) for rural and urban poverty lines, it recommended
a uniform all-India PLB across rural and urban India. Thirdly, it recommended using Mixed Reference
Period (MRP) based es mates, as opposed to Uniform Reference Period (URP) based es mates used
in earlier methods for es ma ng poverty.

20. Consider the following basic ameni es

i) Housing,
ii) Depriva on,
 iii) Employment,
iv) Income,
v) Assets/ameni es,
vi) Landownership

The Socio-Economic Caste Census 2011 captured data on?

A) Only I, iii, v and vi

B) Only I, ii, iii, v and vi
C) Only I, iii and vi
D) All the above

Ans: D

Presently, in India, iden fica on of poor is done by the State Governments based on informa on from
Below Poverty Line (BPL) censuses of which the latest is the Socio-Economic Caste Census 2011 (SECC
2011). The SECC Census was conducted by the States / UTs simultaneously for rural and urban areas
under the technical and financial support from the Government of India. It captured data on
households - individual par culars, housing, depriva on, employment, income, assets/ameni es, and
landownership.

21. A condi on where household income is below a necessary level to maintain basic living
standards (food, shelter, housing). It is known as?
A) Rela ve poverty
B) Absolute poverty
C) Cri cal poverty
D) None of the above

Ans: B

Absolute Poverty: A condi on where household income is below a necessary level to maintain basic
living standards (food, shelter, housing). This condi on makes it possible to compare between different
countries and also over me.

22. Consider the following statements

i) Poverty es ma on in India is carried out by NITI Aayog’s task force through the calcula on
of poverty line based on the data captured by the Na onal Sample Survey Office under
the Ministry of Finance.
ii) Poverty line es ma on in India is based on the consump on expenditure and not on the
income levels.

Which of the statements given above are incorrect?

A) Only i
B) Only ii
C) Both
D) None

Ans: A

Poverty es ma on in India is carried out by NITI Aayog’s task force through the calcula on of poverty
line based on the data captured by the Na onal Sample Survey Office under the Ministry of Sta s cs
and Programme Implementa on (MOSPI). Poverty line es ma on in India is based on the consump on
expenditure and not on the income levels.

23. Asser on (A): The incidence of poverty is measured by the poverty ra o.

Reason (R): Poverty ra o is the ra o of the number of poor to the total popula on expressed as a
percentage. It is also known as head-count ra o.

Select the answer using the codes given below

A) Both A and R are true, and R is proper explana on of A

B) Both A and R are true, and R is not proper explana on of A
C) Only A is true
D) Only R is true

Ans: A

Poverty is measured based on consumer expenditure surveys of the Na onal Sample Survey
Organisa on. A poor household is defined as one with an expenditure level below a specific poverty
line. The incidence of poverty is measured by the poverty ra o, which is the ra o of the number of
poor to the total popula on expressed as a percentage. It is also known as head-count ra o.

24. As per the Rangarajan commi ee report, the poverty line is es mated as Monthly Per Capita
Expenditure of rural and urban as?
A) Rs. 1407 in urban areas and Rs. 972 in rural areas
B) Rs. 1257 in urban areas and Rs. 775 in rural areas
C) Rs. 1002 in urban areas and Rs. 552 in rural areas
D) Rs. 1545 in urban areas and Rs. 1070 in rural areas

Ans: A

Alagh Commi ee (1979) determined a poverty line based on a minimum daily requirement of 2400
and 2100 calories for an adult in Rural and Urban area respec vely. Subsequently different
commi ees; Lakdawala Commi ee (1993), Tendulkar Commi ee (2009), Rangarajan commi ee
(2012) did the poverty es ma on. As per the Rangarajan commi ee report (2014), the poverty line is
es mated as Monthly Per Capita Expenditure of Rs. 1407 in urban areas and Rs. 972 in rural areas.

25. The Global Mul dimensional Poverty Index compares acute mul dimensional poverty for
countries in developing regions, it was first developed in?
A) 2009
B) 2019
C) 2020
D) 2010

Ans: D

The Global Mul dimensional Poverty Index (MPI) compares acute mul dimensional poverty for 107
countries in developing regions. These countries are home to 5.9 billion people, three-quarters of the
world’s popula on. Global MPI was first developed in 2010.

26. The Lorenz curve is a graphical representa on of?

A) Poverty ra o
B) Poverty and Unemployment
C) Income inequality
 D) None of the above

Ans: C

The Lorenz curve is a graphical representa on of income inequality developed by American economist
Dr. Max O. Lorenz in 1905. The Lorenz curve plots percen les of the popula on on the horizontal axis
according to income or wealth and cumula ve income or wealth percentage on the ver cal axis.

27. Consider the following statements regarding the na onal sample survey
i) The Na onal Sample Survey conducted by NITI Aayog.
ii) The Na onal Sample Survey Household Consumer Expenditure Survey generates
es mates of household Monthly Per Capita Consumer Expenditure.

Which of the statements given above are correct?

A) Only i
B) Only ii
C) Both
D) None

Ans: B

The Na onal Sample Survey (NSS), conducted by Na onal Sta s cal Office (NSO) is a na onal
socioeconomic survey conducted in annual rounds with a cycle of rota ng topics. The NSS Household
Consumer Expenditure Survey (HCES) generates es mates of household Monthly Per Capita Consumer
Expenditure (MPCE) and the distribu on of households and persons over the MPCE classes.

28. Consider the following statements regarding the Economic Census

i) Economic Census is conducted by Na onal Sta s cal Office.
ii) Economic census gives insights on the economic ac vi es being carried out across the
country.

Which of the statements given above are correct?

A) Only i
B) Only ii
C) Both
D) None

Ans: C

Economic Census is conducted by NSO, MoSPI and has no fixed periodicity and presently the 7th
Economic Census is being conducted (2019). Economic census gives insights on the economic ac vi es
being carried out across the country, their geographical distribu on, the number and distribu on of
workers, types of ownership and sources of finance. It covers all structures across the country, whether
residen al or commercial including informal/unorganized units but excludes certain economic
ac vi es such as crop-produc on, planta on ac vi es, illegal ac vi es, public administra on and
defence, and ac vi es of extra-territorial organisa ons.

29. Consider the following causes

i) Workers lacking the requisite job skills,
ii) Change in government policy
iii) Change in technology
Structural unemployment occurs for which of the reasons given above?

A) Only i
B) Only I and ii
C) Only I and iii
D) All the above

Ans: D

Structural unemployment occurs for a number of reasons - workers lacking the requisite job skills,
change in government policy or change in technology, or they may live far from regions where jobs are
available but are unable to move there or simply unwilling to work because exis ng wage levels are
too low. So, while jobs are available, there is a serious mismatch between what companies need and
what workers can offer. Structural unemployment exists when there are jobs available and people
willing to do work, but there is not sufficient number of people qualified to fill the vacant jobs.

30. Consider the following statements regarding the Fric onal unemployment
i) Fric onal unemployment arises due to people moving between jobs, career or loca on or
people entering and exi ng the labour force.
ii) Fric onal unemployment occurs for a reason of workers lacking the requisite job skills.

Which of the statements given above are correct?

A) Only i
B) Only ii
C) Both
D) None

Ans: A

Fric onal unemployment arises due to people moving between jobs, career or loca on or people
entering and exi ng the labour force or workers and employers having inconsistence or incomplete
informa on. Actually, people first leave job and then they try to find a new job according to their choice
and this process takes some me to apply for new jobs and for employers to make a selec on and
hence they remain unemployed for this transi on period.

31. Consider the following descrip on

i) More labourers work in the factory land than are required
ii) Produc on per unit of labour will be less.

The descrip on given above are associated with?

A) Fric onal unemployment

B) Structural unemployment
C) Disguised unemployment
D) Seasonal unemployment

Ans: C

Disguised unemployment arises because more labourers work in the factory/land than are required.
And hence produc vity i.e., produc on per unit of labour will be less. In such case if we add more
capital then produc on may increase but if we add more labour then produc on will not increase.
 32. As pe Rangarajan es ma on, the percentage of people living below the poverty line in India
is?
A) 29.5 percent
B) 26.5 percent
C) 22.4 percent
D) 18.2 percent

Ans: A

Therefore, the Tendulkar poverty line remains the official poverty line and is the basis of the current
official poverty es mates in 1993-94, 2004-05 and 2011-12. As per the Tendulkar es ma on, the
percentage of people living below the poverty line in India is 21.9%. However, as pe Rangarajan
es ma on, the percentage of people living below the poverty line in India is 29.5 percent.

33. Consider the following

i) Health
ii) Educa on
iii) Living Standard

Mul dimensional Poverty Index includes which of the above?

A) Only I and ii
B) Only ii and iii
C) Only I and iii
D) All the above

Ans: D

The Mul dimensional Poverty Index (MPI) was developed in 2010 by the Oxford Poverty and Human
Development Imita ve (OPHI) and the United Na ons Development Programme (UNDP). MPI uses
health, educa on and standard of living indicators to determine the degree of poverty experienced by
a popula on.

34. Consider the following social indicators

i) Illiteracy level,
ii) lack of number of means of transport,
iii) lack of job opportuni es,
iv) malnutri on

Which of the above are the are social indicators of poverty?

A) Only I, iii and iv

B) Only iii and iv
C) Only I, ii and iv
D) All the above

Ans: A

Illiteracy level, lack of access to healthcare, lack of job opportuni es, malnutri on, lack of access to
safe drinking water and sanita on facili es etc. are social indicators of poverty while less number of
means of transport is not considered as social indicator of poverty.

35. Unemployment problem leads to poverty because of which among the following reason?
A) People living below poverty line increase
 B) There is rapid increase in popula on
C) It increases infla on
D) None of the above

Ans: A

Unemployment means unu lized human resources which can generate income if employed efficiently,
unemployment means lack of ways to generate income. Therefore, rise in unemployment leads to
decrease in income and the people who are on the brink of poverty line falls below the poverty line.

36. Underemployment is a social problem that affects which among the following?
i) Job growth,
ii) Poverty level,
iii) Economic growth
iv) Emo onal health of underemployed workers

Select the answer using the codes given below

A) Only I, ii and iii

B) Only ii, iii and iv
C) Only iii and iv
D) All the above

Ans: D

Underemployment is a situa on in which a worker is employed, but not in the desired capacity,
whether in terms of compensa on, skill level, experience, educa on or their availability. While not
technically unemployed, the underemployed are o en compe ng for available jobs.
Underemployment is a social problem that affects job growth, poverty level, economic growth and
emo onal health of underemployed workers. The major problem that India is presently facing is of
underemployment rather than unemployment.

37. Asser on (A): Jobless growth implies that GDP/Output is increasing but job crea on is not
happening.

Reason (R): Jobless growth implies that Produc vity of Labour is decreasing.

Select the answer using the codes given below

A) Both A and R are true, and R is proper explana on of A

B) Both A and R are true, and R is not proper explana on of A
C) Only A is true
D) Only R is true

Ans: C

Jobless growth implies that GDP/Output is increasing but job crea on is not happening. This means
that the same labour is now producing more output. And that implies that Produc vity of Labour is
increasing (which is defined as Output/Labour).

38. Disguised unemployment is associated with?

A) Unemployment resul ng from change in technology
B) Fall in produc vity of labour
C) Marginal produc vity of labour is zero here
 D) People in large numbers remaining unemployed for years

Ans: C

The term ‘disguised unemployment’ commonly refers to a situa on of employment with surplus
manpower, in which some workers have zero marginal produc vity (change in output resul ng due to
employing an addi onal unit of input) so that their removal will not affect the volume of total output.
Also known as hidden unemployment, this refers to a situa on where labour that is employed in a job
is not actually u lized for the produc on of goods and services.

39. In India disguised unemployment is found in:

A) Agricultural sector
B) Hospitality management
C) Service sector
D) Tourism sector

Ans: A

In India, disguised unemployment is main characteris c of primary sector (agriculture and allied
sectors), this is due to the high pressure of the popula on on land and other natural resources. Due to
lack of technological development most of the popula on is engaged in agriculture and allied ac vi es.

40. Consider the following statements regarding the unemployment status

i) The Usual Status approach to measure unemployment uses a reference period of 30 days.
ii) the es mates of unemployment obtained on the basis of Usual Status approach are
expected to capture long-term open unemployment.

Which of the statements given above are correct?

A) Only i
B) Only ii
C) Both
D) None

Ans: B

The Usual Status approach to measure unemployment uses a reference period of 365 days i.e., one
year preceding the date of the survey of NSSO (Now NSO) for measuring unemployment and the
number of persons who remained unemployed for a major part of the year is called Usual Status
Unemployment. Thus, the es mates of unemployment obtained on the basis of Usual Status approach
are expected to capture long-term open unemployment.

41. In India which among the following collects and publishes the unemployment Index?
A) NITI Aayog
B) Finance Commission
C) NSSO (NSO)
D) Labour Bureau

Ans: C

The All-India Employment and Unemployment Surveys conducted and published by the Na onal
Sample Survey Office (NSSO) are the primary source of various indicators of labour force at Na onal
and State levels, which are used for planning and policy formula on by various Government
organiza ons as well as researchers. It is to be noted that NSSO merged with the Central Sta s cal
Office (CSO) to from the Na onal Sta s cal Office (NSO) in 2019.

42. Consider the following me periods

i) one year,
ii) one month
iii) one week,
iv) each day of the reference week

Which among the above was the reference periods are used in Na onal Sample Survey?

A) Only I, ii and iii

B) Only I, iii and iv
C) Only ii, iii and iv
D) All the above

Ans: B

In Na onal Sample Survey (NSS) on employment and unemployment in India, persons are classified
into various ac vity categories on the basis of ac vi es pursued by them during certain specified
reference periods. Three reference periods are used in NSS surveys, viz. (i) one year, (ii) one week, and
(iii) each day of the reference week.

43. The economic ac vity status determined on the basis of the reference period of one year is
known as?
A) current weekly status
B) current daily status
C) current monthly status
D) usual principal status

Ans: D

Based on these specified reference periods, three different measures of ac vity status are arrived at.
The ac vity status determined on the basis of the reference period of one year is known as the usual
principal status or usual ac vity status (US) of a person, that determined on the basis of a reference
period of one week is known as the current weekly status (CWS) of the person and the ac vity status
determined on the basis of the engagement on each day during the reference week is known as the
current daily status (CDS) of the person.

44. All of the following are responsible for unemployment, except?

A) Rapid growth of popula on
B) Lack of skill
C) Growth of per capita income
D) Lack of manpower planning

Ans: C

For the persistent unemployment, growth of per capita income is not responsible, while rapid
popula on growth, lack of skill and lack of manpower planning are responsible causes of
unemployment.

45. Asser on (A): The labour force par cipa on rate falling sharply in the recent years for females
in India.
Reason (R): The decline in labour force par cipa on rate is due to the improved family income and
increase in educa on.

Select the answer using the codes given below

A) Both A and R are true, and R is proper explana on of A

B) Both A and R are true, and R is not proper explana on of A
C) Only A is true
D) Only R is true

Ans: A

The labour force par cipa on rate falling sharply in the recent years for females in India. Female labour
force par cipa on rate (FLFPR) declined from 26.2% in 1999-2000 to 22.5% in 2011-12. Based on
global evidence, some of the most important drivers include educa onal a ainment, fer lity rates and
the age of marriage, economic growth/cyclical effects, social norms, and urbaniza on. In India, main
reasons of the falling trends of FLFPR are rising educa onal enrolment of young women, lack of
employment opportuni es, effect of rising household income etc.

46. As per the reports of the fourth round of the QES (for Q4 FY22) in respect of establishments
employment, which among the following sector had the highest percentage of es mated
establishments impar ng formal skill training?
A) Insurance sector
B) Health sector
C) Financial services
D) Tourism sector

Ans: B

As per the reports of the fourth round of the QES (for Q4 FY22) in respect of establishments employing
at least 10 workers in major nine sectors, 15.6 per cent of es mated establishments imparted formal
skill training and 20.5 per cent imparted on-the-job training. The health sector had the highest
percentage of es mated establishments impar ng formal skill training (24.7 per cent) and on-the-job
training (31.6 per cent), followed by financial services (20.4 per cent of establishments impar ng
formal training and 26.4 per cent impar ng on-the-job training).

47. Consider the following statements regarding the Jan Shikshan Sansthan Scheme
i) Jan Shikshan Sansthan Scheme provides for a lump sum annual grant is released to every
district for skill training only to illiterate people in the age group of 15-45 years.
ii) The priority groups are women, SC, ST, and other backward sec ons of society.

Which of the statements given above are incorrect?

A) Only i
B) Only ii
C) Both
D) None

Ans: A

Jan Shikshan Sansthan Scheme provides for a lump sum annual grant is released to Jan Shikshan
Sansthans (NGOs) for skill training to non-literate, neo-literates, persons with a rudimentary level of
educa on and school dropouts up to class XII in the age group of 15-45 years. The priority groups are
women, SC, ST, and other backward sec ons of society.

48. Consider the following statements regarding the periodic labour force survey
i) Periodic Labour Force Survey is India’s first computer-based survey launched by the
Na onal Sta s cal Office in 2021.
ii) Periodic Labour Force Survey has been cons tuted based on the recommenda on of a
commi ee headed by Amitabh Kundu.

Which of the statements given above are correct?

A) Only i
B) Only ii
C) Both
D) None

Ans: B

PLFS is India’s first computer-based survey launched by the Na onal Sta s cal Office (NSO) in 2017. It
has been cons tuted based on the recommenda on of a commi ee headed by Amitabh Kundu. It
collects data on several variables such as the level of unemployment, the types of employment and
their respec ve shares, the wages earned from different types of jobs, the number of hours worked
etc.

49. Consider the following statements regarding the

i) Periodic Labour Force Survey data show an increase in the worker to popula on ra o from
2017-18 to 2019-20.
ii) The Employment Trends is a reversal of the previous trend which showed a decline in
worker to popula on ra o a er 2004-05.

Which of the statements given above are incorrect?

A) Only i
B) Only ii
C) Both
D) None

Ans: D

PLFS data show an increase in the worker to popula on ra o (WPR) from 34.7% in 2017-18 to 38.2%
in 2019-20. This is a reversal of the previous trend which showed a decline in WPR a er 2004-05. The
change also implies that employment has increased at a much faster rate than growth in popula on.
The increase in WPR has been reported in the rural and urban popula on and in the male and female
popula on.

50. Consider the following statements regarding the female workforce

i) Women cons tuted 24 percent of the workforce in the country in 2017-18 and 48.8
percent in 2019-20.
ii) The unemployment rate in the female labour force in rural areas is far higher than the
male labour force, whereas the opposite holds true in urban areas.

Which of the statements given above are incorrect?

A) Only i
 B) Only ii
C) Both
D) None

Ans: C

Female WPR ra o increased from 17.5% to 24% between 2017-18 and 2019-20. The ra o, when
mul plied by the female popula on, shows an annual increase of 17% of women workers. As against
100 male workers, there were 32 female workers in the workforce in 2017-18. This number increased
to 40 in 2019-20. Women cons tuted 24% of the workforce in the country in 2017-18 and 28.8% in
2019-20. Also, the unemployment rate in the female labour force in rural areas is far lower than the
male labour force, whereas the opposite holds true in urban areas.