Consider the following statements regarding self-employment in urban areas: 1. Only street vendors are considered self-employed, while showroom owners are not. 2. Self-employed people are not employed by anyone else. 3. They are responsible for organizing their own work and resources. Which of the following statements are correct ?

Correct Option The correct option is (c). Explanation Self-employment refers to the status of individuals who work for themselves instead of an employer. In the urban context, this category encompasses a diverse range of economic activities, from the unorganized sector to formal business ownership. Statement-wise Analysis: - Statement 1 is Incorrect. Self-employment is not restricted to street vendors or small-scale traders. It includes any individual who owns and operates an enterprise, regardless of its size. Therefore, showroom owners, shopkeepers, and professionals running their own practices are also considered self-employed. - Statement 2 is Correct. The primary definition of a self-employed person is that they are not employed by another individual or entity. They do not receive a fixed salary or wage from an employer but earn income through their own business transactions. - Statement 3 is Correct. Self-employed individuals act as entrepreneurs who are responsible for organizing their own work, managing resources (capital, raw materials, labor), and bearing the risks associated with their economic activity. Key Takeaway: Self-employment is defined by the ownership of the means of livelihood and the absence of an employer-employee relationship, covering both street vendors and large business owners in urban areas.

NCERT Class 6 Economics — Chapter 2: Urban Livelihoods

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Consider the following statements regarding self-employment in urban areas:

Only street vendors are considered self-employed, while showroom owners are not.
Self-employed people are not employed by anyone else.
They are responsible for organizing their own work and resources.

Which of the following statements are correct ?

Official previous-year question

Verified 1 Aug 2026.

Options

A1 and 2 only
B2 only
C2 and 3 only
D1, 2 and 3

Did you get this right?

Solution

Correct Option

The correct option is (c).

Explanation

Self-employment refers to the status of individuals who work for themselves instead of an employer. In the urban context, this category encompasses a diverse range of economic activities, from the unorganized sector to formal business ownership.

Statement-wise Analysis:

Statement 1 is Incorrect. Self-employment is not restricted to street vendors or small-scale traders. It includes any individual who owns and operates an enterprise, regardless of its size. Therefore, showroom owners, shopkeepers, and professionals running their own practices are also considered self-employed.
Statement 2 is Correct. The primary definition of a self-employed person is that they are not employed by another individual or entity. They do not receive a fixed salary or wage from an employer but earn income through their own business transactions.
Statement 3 is Correct. Self-employed individuals act as entrepreneurs who are responsible for organizing their own work, managing resources (capital, raw materials, labor), and bearing the risks associated with their economic activity.

Key Takeaway: Self-employment is defined by the ownership of the means of livelihood and the absence of an employer-employee relationship, covering both street vendors and large business owners in urban areas.

Your note

More from Chapter 2: Urban Livelihoods

With reference to the working conditions of street vendors, consider the following 1. They have to organise their own work, including planning purchases and setting up shops. 2. They possess permanent licenses that protect them from being dismantled by the police. 3. Food items sold by them are often prepared at home by their families who clean and sort them. Which of the following statements are correct ?

medium

Consider the following statements regarding the proposed government measures for street vendors: 1. The government has decided to completely ban all forms of street vending in urban areas. 2. Hawking zones have been suggested for towns and cities. 3. Mobile vendors are to be allowed to move around freely. Which of the following statements are correct ?

medium

Consider the following statements regarding permanent shops in the market: 1. They are given a licence to do business by the Municipal Corporation. 2. The shop owners themselves decide the weekly closing day without any regulation. 3. Permanent shop owners are prohibited from employing any workers. Which of the following statements are correct ?

medium

Consider the following statements comparing street vendors and market shop owners: 1. Street vendors have no security of tenure, while market shop owners have permanent licenses. 2. Street vendors always employ more workers than permanent shop owners. 3. Both groups operate within the urban economy, though with different levels of security. Which of the following statements are correct ?

hard

In the context of casual employment in the unorganized sector, which of the following is a common consequence for workers who demand better pay or working conditions?

easy

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Correct Option

The correct option is (c).

Explanation

Statement-wise Analysis:

Statement 1 is Incorrect. Self-employment is not restricted to street vendors or small-scale traders. It includes any individual who owns and operates an enterprise, regardless of its size. Therefore, showroom owners, shopkeepers, and professionals running their own practices are also considered self-employed.
Statement 2 is Correct. The primary definition of a self-employed person is that they are not employed by another individual or entity. They do not receive a fixed salary or wage from an employer but earn income through their own business transactions.
Statement 3 is Correct. Self-employed individuals act as entrepreneurs who are responsible for organizing their own work, managing resources (capital, raw materials, labor), and bearing the risks associated with their economic activity.