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Question : Statement 1: The labor force in India is predominantly engaged in the informal sector.

Statement 2: The informal sector provides better job security and social security benefits compared to the formal sector.

Option 1: Both statements are true.

Option 2: Both statements are false.

Option 3: Statement 1 is true, statement 2 is false.

Option 4: Statement 1 is false, statement 2 is true.


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Answer (1)
Team Careers360 24th Jan, 2024

Correct Answer: Statement 1 is true, statement 2 is false.


Solution : The correct answer is (c) Statement 1 is true, statement 2 is false.

Statement 1 is true. The labor force in India has a significant proportion engaged in the informal sector, which includes activities that are not regulated or protected by labor laws and lack formal social security benefits.

Statement 2 is false. Generally, the formal sector provides better job security and social security benefits compared to the informal sector. The formal sector is characterized by employment in registered and organized establishments that adhere to labor laws and regulations. These establishments often offer more stability, benefits, and legal protections to employees.

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