Consider the following statements regarding the employment conditions in the garment exporting factory: 1. Most workers are employed on a permanent basis with social security benefits. 2. Workers can be asked to leave whenever the employer feels they are not needed. 3. Wages are fixed according to the skills of the worker. Which of the following statements are correct ?

The correct option is (c). Explanation The garment export industry operates in a highly competitive global market where foreign buyers demand high standards at the lowest possible prices. To maximize profits and manage fluctuating demand, garment exporting factories in India often adopt flexible labor practices, leading to the "casualization" of the workforce. Statement-wise Analysis: - Statement 1 is Incorrect. In the garment export sector, most workers are not employed on a permanent basis. Employers prefer temporary or casual employment to avoid the costs associated with permanent staff, such as social security benefits (Provident Fund, ESI) and to maintain flexibility in workforce size. - Statement 2 is Correct. Employment in this sector is largely temporary. Workers are hired when the workload is high (e.g., during peak export seasons) and can be asked to leave when the demand drops or when they are no longer needed. There is very little job security. - Statement 3 is Correct. Wages in garment factories are typically fixed according to the skills and designation of the worker. For instance, tailors usually earn the highest wages among the workers, while those engaged in tasks like thread cutting, buttoning, or ironing (helpers) receive lower wages. Key Takeaway: The garment export industry is characterized by temporary employment and low job security, where workers are hired based on demand and paid wages commensurate with their specific skills.

NCERT Class 7 Economics — Chapter 1: A Shirt in the Market

mcqmedium

Consider the following statements regarding the employment conditions in the garment exporting factory:

Most workers are employed on a permanent basis with social security benefits.
Workers can be asked to leave whenever the employer feels they are not needed.
Wages are fixed according to the skills of the worker.

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

The correct option is (c).

Explanation

The garment export industry operates in a highly competitive global market where foreign buyers demand high standards at the lowest possible prices. To maximize profits and manage fluctuating demand, garment exporting factories in India often adopt flexible labor practices, leading to the "casualization" of the workforce.

Statement-wise Analysis:

Statement 1 is Incorrect. In the garment export sector, most workers are not employed on a permanent basis. Employers prefer temporary or casual employment to avoid the costs associated with permanent staff, such as social security benefits (Provident Fund, ESI) and to maintain flexibility in workforce size.
Statement 2 is Correct. Employment in this sector is largely temporary. Workers are hired when the workload is high (e.g., during peak export seasons) and can be asked to leave when the demand drops or when they are no longer needed. There is very little job security.
Statement 3 is Correct. Wages in garment factories are typically fixed according to the skills and designation of the worker. For instance, tailors usually earn the highest wages among the workers, while those engaged in tasks like thread cutting, buttoning, or ironing (helpers) receive lower wages.

Key Takeaway:

The garment export industry is characterized by temporary employment and low job security, where workers are hired based on demand and paid wages commensurate with their specific skills.

Your note

More from Chapter 1: A Shirt in the Market

Consider the following statements regarding cotton cultivation: 1. Cotton harvesting takes time as the bolls do not burst all at once. 2. Cotton cultivation requires minimal inputs and no fertilizers. 3. Small farmers often borrow money from local traders to meet the heavy expenses of cultivation. Which of the following statements are correct ?

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Consider the following statements regarding the 'putting-out system' in the weaving industry: 1. The weavers purchase the yarn themselves from the open market. 2. The weavers are paid for their work by the merchant. 3. The finished cloth is collected by the merchant from the weavers. Which of the following statements are correct ?

medium

Consider the following statements regarding the advantages of the putting-out system for weavers: 1. Weavers do not have to spend their money on the purchase of yarn. 2. The weavers are responsible for selling the finished cloth in distant markets. 3. Weavers have complete autonomy to set the market price for the cloth. Which of the following statements are correct ?

medium

With reference to Weaver’s Cooperatives, consider the following 1. They are formed to reduce dependence on the merchant. 2. In a cooperative, each weaver procures yarn individually from the market. 3. The cooperative also plays a role in marketing the finished cloth. Which of the following statements are correct ?

medium

Which of the following best describes the function of a 'Ginning mill'?

easy

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The correct option is (c).

Explanation

Statement-wise Analysis:

Statement 1 is Incorrect. In the garment export sector, most workers are not employed on a permanent basis. Employers prefer temporary or casual employment to avoid the costs associated with permanent staff, such as social security benefits (Provident Fund, ESI) and to maintain flexibility in workforce size.
Statement 2 is Correct. Employment in this sector is largely temporary. Workers are hired when the workload is high (e.g., during peak export seasons) and can be asked to leave when the demand drops or when they are no longer needed. There is very little job security.
Statement 3 is Correct. Wages in garment factories are typically fixed according to the skills and designation of the worker. For instance, tailors usually earn the highest wages among the workers, while those engaged in tasks like thread cutting, buttoning, or ironing (helpers) receive lower wages.

Key Takeaway:

The garment export industry is characterized by temporary employment and low job security, where workers are hired based on demand and paid wages commensurate with their specific skills.