Question

“In India, there are more people in agriculture than necessary.” Which of the following captures the essence of this statement?

[0.8 marks]

• A. The agricultural sector produces more than its potential.
• B. Agriculture is a labour-intensive sector.
• C. There is disguised unemployment in the agriculture sector.
• D. Agriculture is a lucrative activity.

Answer 1

The correct option is C There is disguised unemployment in the agriculture sector.

More than half of the people in India work in the primary sector, mostly in agriculture, but it amounts to only one-sixth of India’s GDP. This shows that there are more people involved in agriculture than necessary. In other words, there is underemployment or disguised unemployment in the agriculture sector.