(i) Define Worker Population Ratio. Discuss its usefulness. (ii) 'Mr. Rishi, after completing his education, has joined his family business but his marginal productivity is zero.' Comment upon the employment status of Mr. Rishi. Give valid reasons in support of your answer. (i) 'Kavya works on her family farm and is neither paid in cash nor in the form of grains.' Can she be categorized as a worker ? Give valid reasons in support of your answer. (ii) "In the late 1990's India experienced a widening gap between the growth of GDP and employment generation". Discuss.

Question

Accepted Answer

(i) Worker Population Ratio:

Definition: The proportion of total population that is employed.
Formula: (Total Workers / Total Population) × 100

Usefulness:
1. Indicates employment situation
2. Shows economic activity level
3. Helps compare across regions and time
4. Reflects standard of living
5. Guides policy formulation

(ii) Mr. Rishi's employment situation:

Marginal productivity is zero, indicating:
- Disguised unemployment
- He is not adding to output despite being engaged
- Common in family businesses where extra workers are engaged
- This reflects underutilization of human resources

Employment status: Self-employed but underemployed. His engagement is more for social and family reasons rather than economic productivity.