Q. Consider the following statements:
1.India-KLEMS is a framework used to measure industry-level total factor productivity (TFP).
2.The KLEMS framework is also used to collect data on employment.
Which of the statement(s) given above is/are correct?
Explanation –
Statement 1 is correct. KLEMS stands for Capital (K), Labour (L), Energy (E), Material (M) and Services (S). The India-KLEMS framework is designed to measure industry-level total factor productivity (TFP), which involves analyzing inputs like capital, labour, energy, materials, and services to assess how efficiently these resources are used to produce goods and services.
Statement 2 is incorrect. The KLEMS framework itself does not directly collect data on employment. Instead, it utilizes employment data from other official sources such as the Census of India and labour surveys. The employment figures in the KLEMS framework are derived from these external sources rather than being collected directly by the framework itself.
Source: The Hindu
