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Difficulty: HardDemographic Trends, Employment Types, and Skill Development Programs

With reference to labor market indicators and skill development institutional architecture in India, consider the following statements:

1. Disguised unemployment occurs when more people are engaged in a job than required, resulting in a marginal productivity of labor that approaches zero.
2. The Worker Population Ratio (WPR) measures the percentage of employed persons relative to the total labor force rather than the total population.
3. The Scheme for Higher Education Youth in Apprenticeship and Skills (SHREYES) is aimed at providing industry apprenticeship opportunities to non-technical general degree graduates.

Which of the statements given above are correct?

  1. 1 and 3 onlyAnswer
  2. B
    1 and 2 only
  3. C
    2 and 3 only
  4. D
    1, 2 and 3

Answer

Statements 1 and 3 are correct. Disguised unemployment features near-zero marginal labor productivity, and SHREYES targets general degree graduates for apprenticeship. Statement 2 is false as Worker Population Ratio (WPR) calculates employed persons as a percentage of the total population.
The option selecting statements 1 and 3 only is correct because disguised unemployment is defined by zero marginal productivity of labor, and SHREYES provides apprenticeship pathways for non-technical general stream graduates. Statement 2 is false because Worker Population Ratio uses total population as its denominator, not the labor force.

Step-by-Step Solution

1
Analyze Statement 1 regarding disguised unemployment
Disguised unemployment is a scenario where extra labor adds no incremental output (marginal productivity of labor ≈0\approx 0). Thus, Statement 1 is correct.
This matches the economic definition commonly observed in agrarian economies.
2
Evaluate Statement 2 regarding Worker Population Ratio (WPR)
WPR is calculated as (Employed PersonsTotal Population)×100\left(\frac{\text{Employed Persons}}{\text{Total Population}}\right) \times 100. Statement 2 incorrectly substitutes 'total labor force' into the denominator.
The ratio relative to the labor force represents the employment rate within the labor force, not WPR.
3
Evaluate Statement 3 regarding SHREYES scheme target group
SHREYES (Scheme for Higher Education Youth in Apprenticeship and Skills) specifically targets non-technical degree courses (like BA, BSc, BCom) to enhance employability via apprenticeship stipend support. Thus, Statement 3 is correct.
This aligns with the Ministry of Education initiative for non-technical graduates.

Key Concept

Worker Population Ratio (WPR), Disguised Unemployment, and SHREYES Apprenticeship Scheme
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Topics

Demographic Trends, Employment Types, and Skill Development Programs