11th Economics Chapter 7 Exercise Solution (Unemployment in India) Maharashtra Board – Free Solution

11th Economics Chapter 7 Exercise

11th Economics Chapter 7 Exercise
11th Economics Chapter 7 Exercise

Chapter 7 – Unemployment in India

Q. 1. Find the odd word out

1) Urban unemployment –
Educated unemployment, Industrial unemployment, Disguised unemployment, Technological unemployment
2) States with high rates of unemployment –
Goa, Punjab, Maharashtra, Tripura
3) Employment Guarantee Scheme 1972, Jawahar Rozgar Yojana 1989, Swarnajayanti Gram Swarozgar Yojana 1999, Development of Tourism

Q. 2. Identify and explain the concepts from the given illustrations

1) Hussain Shaikh employed seven workers less than the usual number of workers on his farm, in spite of this, output remained the same.
Disguised Unemployment
It is a situation in which more people are doing work than actually required. Even if some are withdrawn, production does not suffer.

2) Use of new technology in the printing industry has led to unemployment among several workers.
Concept: Technological Unemployment
Technological unemployment arises because of changes in technology. Modern technology is capital-intensive and requires less labourers.

3) Satish has completed his post-graduation and is desperately expecting a job.
Concept: Educated Unemployment
When people are educated and willing to work but do not get jobs is known as educated unemployment.

4) In certain agricultural areas of Maharashtra only Kharif crops are grown, therefore employment is available till the month of October.
Concept: Seasonal Unemployment

Explanation: A large number of people remain unemployed during the slack season or in the off-season. The majority of the labour force in the agricultural sector remain unemployed for nearly 5-7 months in a year.

Q. 3. Complete the correlation

1) Seasonal unemployment : Tourist guides : : Educated Unemployment : Graduates

2) Rural Unemployment : Disguised unemployment : : Urban unemployment : Industrial unemployment

3) Frictional unemployment : Shortage of raw materials : : Cyclical Unemployment : Fluctuations in business activity

4) MGNREGS : guaranteed wage employment : : TRYSEM : self employed

5) Economic effect : Waste of resources : : Social effect : loss of human dignity

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Q. 4. Observe the following chart and answer the
following questions

Types of Unemployment

1) Production does not increase if additional worker is employed and production does not decrease if worker is reduced from the work. Mention the type of unemployment.
Answer: Disguised unemployment

2) A worker is thrown out of job because of computerization. Name this type of unemployment?
Answer: Technological unemployment

3) Sharad was forced to return back to India from USA due to depression in IT sector.
Answer: Cyclical unemployment

4) In spite of being a graduate, Vasant is sitting idle at home.
Answer: Educated unemployment

Q.5. Solve the following

1) Find out Q1 and Q3 using unemployment rates as numerical data


YearUnemployment Rate %

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Q.6. Answer the following in detail

1) Explain the types of Industrial unemployment in India.

Answer: Industrial Unemployment refers to unemployment in the industrial sector.

Following are the types of Industrial unemployment

i) Technological Unemployment
Technological unemployment arises because of changes in technology. When new techniques are introduced in the industrial sector, existing workers are displaced from their jobs due to lack of proper training, e.g. computerization, the introduction of robotic technology, etc.

ii) Frictional Unemployment
Frictional unemployment is caused due to breakdown of machinery, power failure, shortage of raw materials, strikes by workers etc. Frictional unemployment is temporary by nature.

iii) Cyclical Unemployment
Cyclical unemployment is the result of cyclical fluctuations in the level of business activity. The economy passes through phases of prosperity and depression. During the period of depression, effective demand falls which leads to a fall in prices. It leads to a fall in production which in turn leads to a fall in employment. As a result, workers are thrown out of jobs during the period of depression.

iv) Structural Unemployment
Structural changes in the economy are caused by changes in government policies, shortage of capital, shifting of the industry from one region to another, etc. Structural unemployment takes place because of a mismatch between the skills of workers and the jobs that are actually available, e.g. i) horse carts had been replaced by auto rickshaws. ii) introduction of computerized typing has caused unemployment among manual typists.

2) Explain the causes of unemployment in India.

Answer: Following are the major causes of unemployment:

1) Jobless growth
Since independence, the rate of growth of employment in India has been considerably less than the rate of economic growth. Moreover, the rate of economic growth has not been adequate enough to absorb the increasing labour force. As a result, there is widespread unemployment.

2) Increase in labour force
Death rate has rapidly declined without a corresponding fall in birth rate, therefore the country has registered an unprecedented population growth. This was naturally followed by an equally large expansion in labour force leading to unemployment.

3) Excessive use of machinery
In India, manpower is available in large quantities. Under these circumstances, the country would have labour-intensive technique of production. However, not only in industries, but also in agriculture, producers are increasingly substituting capital for labour. Where capital is in abundant supply, use of automatic machines and other sophisticated equipment is both rational and justified. But in India, this policy results in large scale

4) Lack of skill development programmes
Vocational skill development courses which are compatible with the Indian industry are comparatively less in number. So, there is a dearth of skilled manpower needed by the industry.

5) Expectations towards employment
Educated youth in India aspire for white collar job. Graduates prefer to remain unemployed till they get a job which is up to their expectations in terms of salary and nature of work.

6) Seasonal nature of agriculture
Agriculture in India is seasonal by nature. It depends on monsoon. Lack of irrigation facilities, poor soil fertility, outdated production techniques, non-availability of certified seeds and fertilizers are the factors that reduce the capacity of agriculture for other gainful employment throughout the year. The labourers are employed only for a few months in a year. For the rest of the year, the labour force remains jobless.

7) Slow rate of economic development
The overall economic development of India is very slow. Inadequate irrigation facilities, fertilizers, unsatisfactory growth of infrastructure are all due to inadequate industrial expansion. As a result, employment opportunities have not increased enough in the rural sector to absorb the growing labour force.

8) Migration of rural population
There has been a continuous migration of people from rural to urban areas in search of jobs. This has increased the problem of unemployment in urban

3) Explain the measures taken by the government to reduce unemployment.


1) Employment Guarantee Scheme (EGS)
Employment Guarantee Scheme was first introduced by the Government of Maharashtra on 28th March 1972. This scheme was intended to provide productive employment to the rural population and thereby solve the problem of rural unemployment and poverty. Under this scheme, government assures to provide minimum employment opportunities.

2) Swarnjayanti Gram Swarozgar Yojana (SGSY)
This scheme was launched in April, 1999 after restructuring the Integrated Rural Development Programme (IRDP) and allied schemes. It is the only self-employment scheme for the rural poor in India.

3) Swarna Jayanti Shahari Rozgar Yojana (SJSRY)
This scheme was launched in December 1997. It provides gainful employment to the urban unemployed and underemployed. It included self-employment, women self-employment programme, skill training for employment promotion and urban wage employment programme.

4) Pradhan Mantri Rozgar Yojana (PMRY)
This scheme is being implemented since 1993 to create and provide sustainable self-employment opportunities to more than one million educated unemployed youth.

5) Training Rural Youth for Self-employment (TRYSEM)
It was initiated in 1979 with the objective of tackling unemployment problem among the rural youth. It aimed at training about 2 lakh rural youth every year to enable them to become self-employed. TRYSEM was merged into Swarnajayanti Gram Swarozgar Yojana in April 1999.

6) Jawahar Rozgar Yojana (JRY)
On 1st April 1989, the Government announced a new wage employment scheme, the Jawahar Rozgar Yojana for intensive employment creation in 120 backward districts. It was restricted to rural area. With effect from April 1999, it was renamed asJawahar Gram Samrudhi Yojana (JGSY).

7) Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS)
Since 2nd October 2009, National Rural Employment Guarantee Scheme has been renamed as Mahatma Gandhi National Rural Employment Guarantee Scheme. This scheme provides at least 100 days of guaranteed wage employment in a financial year to at least one member of every rural household whose adult member volunteers to do unskilled manual work.

8) Deen Dayal Upadhyaya Grameen Kaushalya Yojana 2014
It is the most important placement linked skill training programme under the Ministry of Rural Development announced on September 23, 2014. The mission of this scheme is to reduce poverty as well as provide gainful
and sustainable employment through regular wages.

9) National Policy for Skill Development and Entrepreneurship – 2015
The first National policy on skill development was notified in 2009 to promote private sector participation via innovative funding models. The objective of this scheme is to co-ordinate and strengthen factors essential for growth of entrepreneurship across the country. This would include :
i) Promote entrepreneurship culture
ii) Encourage entrepreneurship as a viable career option through advocacy
iii) Promote entrepreneurship among women

10) Startup India Initiative
It was introduced in January 2016 with an aspiration to impart more “strength and inspiration to the talented young generation of India to do something new for India and humanity.”

11) Pradhan Mantri Kaushal Vikas Yojana- (2016-20)
The objective of this scheme is to encourage skill development among youth by providing monetary rewards for successful completion of approved training programmes. The government has allocated a budget of ` 12,000 crores till 2020 for implementation of the scheme.

Solution of all Chapters of Economics

Chapter Name Solution Link
1) Basic Concepts in EconomicsSolution
2) MoneySolution
3) Partition ValuesSolution
4) The Economy of MaharashtraSolution
5) Rural Development in IndiaSolution
6) Population in IndiaSolution
7) Unemployment in IndiaSolution
8) Poverty in IndiaSolution
9) Economic Policy of India Since 1991Solution
10) Economic Planning in IndiaSolution

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