Question

Kerala's employment data show that agriculture employs far more people than its share in GSDP. What does this mismatch imply?

• A. Agriculture is highly productive
• B. Labour is under-employed in agriculture
• C. Industrialisation has absorbed surplus labour
• D. Kerala's economy is still agrarian

Answer 1

Answer:

B. Labour is under-employed in agriculture

• The Mismatch: The core statement is that Agriculture's share in GSDP is low, but its share in employment is high.

  • Low GSDP Share: This means agriculture produces relatively little value for the state's economy.

  • High Employment Share: This means a large number of people are working in the sector.

• The Implication (Under-employment): When many people are producing very little value, it indicates low productivity per worker. This situation, where more people are engaged in a sector than are economically necessary, is known as disguised unemployment or under-employment. If some workers were removed, the total output might not significantly decrease.