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Question
“In rural areas of India more members of a family are engaged on work, yet the gross income of the family is generally low.”
Identify the type of unemployment indicated in the above statement and explain the paradox associated with it.
Solution
Identified unemployment is the type of unemployment addressed in the provided statement. Yes, there is a paradox in that more people work in rural India, but the average family's gross income is low. Because of the following:
- Huge population: Families in rural locations have a significant number of members. As a result, they will be unable to teach everyone. As a result, rather than sitting idle, they choose to send all members to their farms. However, employing workers who are not needed does not increase farm output.
- Limited knowledge of employment Opportunities: People in rural areas are typically unaware of alternative employment alternatives outside farming. As a result, their revenue is modest.
- Poverty: Poor people lack the resources to engage in other small companies. As a result, they are obliged to live within their means. As a result, their income stays modest.
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