With reference to government initiatives for employment generation, consider the following statements: 1. Direct employment generation occurs when the government employs people in administrative departments and public enterprises. 2. Indirect employment generation occurs only when the government hires workers directly. 3. Employment generation is often a key component of poverty alleviation programmes. Which of the statements given above is/are correct?

Correct Option The correct option is 1 and 3 only. Explanation Government intervention in the economy to foster employment typically takes two forms: direct employment through state machinery and public enterprises, and indirect employment generated through the multiplier effect of government production and spending on the private sector. Statement-wise Analysis: - Statement 1 is Correct. Direct employment generation refers to the scenario where the government directly hires individuals for its administrative departments (such as the civil services, police, and defense) and for running industrial or service units known as Public Sector Enterprises (PSEs). In this case, the government is the direct employer. - Statement 2 is Incorrect. Indirect employment generation occurs when the production of goods and services by government enterprises creates a demand for inputs (raw materials, machinery, logistics) from the private sector. This increased demand leads to job creation in the private economy. It does not involve the government hiring workers directly; rather, it is a secondary effect of government economic activity. - Statement 3 is Correct. Employment generation is a fundamental pillar of poverty alleviation strategies in India. Programmes such as the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) and the National Rural Livelihood Mission (NRLM) aim to alleviate poverty by providing wage employment or facilitating self-employment opportunities. Key Takeaway: Direct employment involves the government acting as the employer, whereas indirect employment arises when government activities stimulate demand in the private sector, leading to job creation outside the government.

With reference to government initiatives… - NCERT Class 11 Economics MCQ

NCERT Class 11 Economics — Chapter 7: Employment: Growth, Informalisation and Other Issues

mcqmedium

With reference to government initiatives for employment generation, consider the following statements:

Direct employment generation occurs when the government employs people in administrative departments and public enterprises.
Indirect employment generation occurs only when the government hires workers directly.
Employment generation is often a key component of poverty alleviation programmes.

Which of the statements given above is/are correct?

NCERT textbook question

From NCERT Indian Economic Development · Page 108

Options

A1, 2 and 3
B1 and 3 only
C2 only
D1 and 2 only

Did you get this right?

Solution

Correct Option

The correct option is 1 and 3 only.

Explanation

Government intervention in the economy to foster employment typically takes two forms: direct employment through state machinery and public enterprises, and indirect employment generated through the multiplier effect of government production and spending on the private sector.

Statement-wise Analysis:

Statement 1 is Correct. Direct employment generation refers to the scenario where the government directly hires individuals for its administrative departments (such as the civil services, police, and defense) and for running industrial or service units known as Public Sector Enterprises (PSEs). In this case, the government is the direct employer.
Statement 2 is Incorrect. Indirect employment generation occurs when the production of goods and services by government enterprises creates a demand for inputs (raw materials, machinery, logistics) from the private sector. This increased demand leads to job creation in the private economy. It does not involve the government hiring workers directly; rather, it is a secondary effect of government economic activity.
Statement 3 is Correct. Employment generation is a fundamental pillar of poverty alleviation strategies in India. Programmes such as the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) and the National Rural Livelihood Mission (NRLM) aim to alleviate poverty by providing wage employment or facilitating self-employment opportunities.

Key Takeaway:

Direct employment involves the government acting as the employer, whereas indirect employment arises when government activities stimulate demand in the private sector, leading to job creation outside the government.

Your note

More from Chapter 7: Employment: Growth, Informalisation and Other Issues

With reference to the composition of the Informal Sector, consider the following statements: 1. It includes millions of farmers and agricultural labourers. 2. It includes owners of small enterprises and the self-employed who do not have hired workers. 3. It excludes non-farm casual wage labourers who work for more than one employer. Which of the statements given above is/are correct?

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With reference to the net earning from foreign transactions, consider the following statements: 1. Net earnings from foreign transactions are always zero for an open economy. 2. It is negative if the value of imports exceeds the value of exports. 3. It is added to the Gross Domestic Product to arrive at the Gross National Product. Which of the statements given above is/are correct?

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Which one of the following is a significant factor contributing to the lower workforce participation rate of urban women compared to rural women in India?

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In the context of the Indian economy, which sector accounts for the largest share of the female workforce?

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Which one of the following sectors provides the highest share of employment to the Indian workforce?

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Keep practising Chapter 7: Employment: Growth, Informalisation and Other Issues

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