Statement–Assumption — “Unemployment has increased in spite of the Indian economy growing well.” Assumptions: I) Economic growth is expected to create more job opportunities. II) Factors other than growth influence employment outcomes. Choose the implicit assumption(s).

Difficulty: Medium

Correct Answer: Both I and II are implicit.

Explanation:


Introduction / Context:
The statement contrasts rising unemployment with healthy GDP growth, implicitly critiquing “jobless growth.” For this contrast to carry meaning, two background beliefs must hold.


Given Data / Assumptions:

  • Growth generally raises labour demand via investment and consumption (expectation).
  • Employment also depends on technology, sectoral mix, labour regulations, and participation rates (other factors).


Concept / Approach:
Assumption I provides the “despite” tension: growth should generate jobs. Assumption II explains why the expectation may fail: other determinants can offset or delay job creation, producing divergence between GDP and employment.


Step-by-Step Solution:

1) Recognise normative baseline (I): growth → jobs.2) Recognise multidimensional labour dynamics (II).3) Hence both assumptions are necessary to make the contrast informative.


Verification / Alternative check:
Episodes of productivity-led, capital-intensive growth often raise GDP without commensurate hiring.


Why Other Options Are Wrong:
Choosing only one undermines either the contrast or its explanation; “Neither” empties the statement of significance.


Common Pitfalls:
Assuming a mechanical growth→jobs link without considering sectoral composition.


Final Answer:
Both I and II are implicit.

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