Q. Which of the following statements correctly describes the term ‘Employment Elasticity ‘?

[A] It indicates the growth of the economy due to the increase in employment opportunities.

[B] It indicates the increase in the output of an organisation due to an increase in the number of employees.

[C] It is the ratio of shift of employment to the more productive sectors from low productive ones, due to economic growth.

[D] It indicates the ability of an economy to generate employment opportunities for its population as per cent of its growth

Answer: D
Notes:

Employment elasticity is a measure of the percentage change in employment associated with a 1 percentage point change in economic growth. The employment elasticity indicates the ability of an economy to generate employment opportunities for its population as per cent of its growth (development) process.

Live mint

Blog
Academy
Community