Class 12 Economics – Employment: Growth, Informalisation and Other Issues (MCQ Mock Test)

Evaluate Your Understanding of Employment and Economic Growth with Our MCQ Mock Test!

Do you know the difference between organized and unorganized sectors or what leads to informalisation of the workforce? Test your grasp of these important concepts with this MCQ-based mock test on Employment: Growth, Informalisation and Other Issues, prepared as per the latest Class 12 Economics syllabus (2025–26).

This test includes all crucial topics — meaning and types of employment, workforce participation, nature of employment in different sectors, growth trends, informalisation, and government initiatives for employment generation.

Each question is designed to sharpen your analytical skills, improve conceptual understanding, and prepare you for board-level application-based questions. Ideal for school tests, boards, and competitive exams, this mock test gives you a clear edge in mastering this chapter.

Attempt now and strengthen your understanding of Employment and the changing structure of India’s workforce!

1. An establishment with four hired workers is known as ___________ sector established.

formal

informal

both (a) and (b)

None of these

2. Workers who are on permanent pay-roll of their employer are called:

Self-employed workers

Casual workers

Regular workers

None of the above

3. ___________ is common form of unemployment in rural India.

Disguised unemployment

Seasonal unemployment

Educated unemployment

Open unemployment

4. Unemployed person is one who is not able to get employment of even one hour in half a day. This definition is as per:

Economists

National Sample Survey Organisation

Census of India

Directorate General of Employment and Training

5. Agriculture labourers, farmers, owners of small enterprise which employ less than 10 workers fall in the category of:

formal sector

informal sector

casual workers

regular workers

6. __________ is an indicator which is used for analysing employment situation in India.

Work Force Participation Rate

Worker Population Ratio

Labour Force Participation Rate

Both (a) and (b)

7. After the workers lost their jobs in 1980’s, which city experienced an economic recession and communal riots?

Ahmedabad

Bombay

Allahabad

Bangalore

8. Find the odd one out.

a private school teacher in a school with only 25 teachers.

a nurse in a government hospital.

cycle-rickshaw puller.

a civil engineer working in a construction company which has 10 workers.

9. Which of the following is the correct formula for calculating ‘Worker Population Ratio’?

(a)

(b)

(c)

(d)

10. Supply of labour corresponding to different wage rates is referred as:

Labour supply

Labour force

Participation rate

Work force

11. Men get opportunity to work in:

Primary sector

Secondary sector

Service sector

Both (a) and (c)

12. The newly emerging jobs are found mostly in ___________ sector.

Manufacturing

Primary

Service

None of these

13. Formal sector establishment, employ:

8 hired workers or more

10 hired workers or more

12 hired workers or more

14 hired workers or more

14. Workforce provided employment by the secondary sector is:

20%

24%

26%

27%

15. Assertion (A): All those who are engaged in economicactivities are workers.

Reason (R): Economic activities are those which contribute to gross national product.

Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A)

Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation of Assertion (A)

Assertion (A) is true but Reason (R) is false

Assertion (A) is false but Reason (R) is true

16. Those who work in their own establishment using their own resources are called ___________.

Hired workers

Casual workers

Regular workers

Self-employed

17. Assertion (A): In rural area, maximum people are casual wage labourers.

Reason (R): In rural areas, small and marginal farmers cultivate on their small landholdings.

Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A)

Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation of Assertion (A)

Assertion (A) is true but Reason (R) is false

Assertion (A) is false but Reason (R) is true

18. The service sector includes activities such as:

making sugar, gur and bricks

transport, communication and banking

agriculture, dairy, fishing and forestry

None of these

19. Unemployment is defined as:

the section of the population that is not capable of being employed.

the section of population willing to work but unable to find employment.

the section of population that is waiting to be employed.

the section of population that are without the skills needed by employers.

20. When more persons are working in a job than actually required, it is known as ___________

Disguised unemployment

Seasonal unemployment

Educated unemployment

Open unemployment

21. Assertion (A): Casual wage workers are also known as hired workers.

Reason (R): Casual wage workers do physical work for someone in return of wages.

Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A)

Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation of Assertion (A)

Assertion (A) is true but Reason (R) is false

Assertion (A) is false but Reason (R) is true

22. Identify the type of unemployment as shown in given image.

Open unemployment

Hidden unemployment

Disguised unemployment

Seasonal unemployment

23. Observe the given image carefully and answer the question that follows.

Roadside vending is an increasing variety of ___________ unemployment.

formal

Informal

Both (a) and (b)

Neither (a) nor (b)

24. Ramu has his own land on which he grows only one crop in a year. He works only for 5 to 7 months in a year. The kind of unemployment he faces in the remaining part of the year is called:

Disguised unemployment

Seasonal unemployment

Frictional unemployment

Cyclic unemployment

25. Assertion (A): In rural areas, people cannot stay at home as their economic condition may not allow them to do so.

Reason (A): During 2017-18, for every 100 rural women about 18 participate in the employment market.

Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A)

Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation of Assertion (A)

Assertion (A) is true but Reason (R) is false

Assertion (A) is false but Reason (R) is true

26. Which of the following is false regarding labour force?

It includes all members of population.

It includes those who are engaged in productive activities.

It excludes very young and very old people.

It excludes mentally challenged people.

27. Observe the given image carefully and answer the question that follows.

Dam construction work is a ___________ way of employment generation by the government.

direct

indirect

hidden

None of these

28. Electricity, gas and water supply belong to __________ sector.

Primary

Secondary

Tertiary

None of these

29. Due to the recent efforts of which international body the Indian government, initiated the modernisation of informal sector?

World Bank

WTO

International Labour Organisation

G–20

30. Data on unemployment in India can be obtained from which source?

Reports of Census of India

National Sample Survey Organisation (NSSO)

Directorate General of Employment

All the above

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