Official Answer Key & Detailed Solution
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Correct Answer: Option (B) — 3 and 4 only
Concept & Option Breakdown
Standard Reference Verified- Statement 1 is incorrect: Worker productivity (in rupees per worker at constant prices) increased in both rural and urban areas post-liberalization.
- Statement 2 is incorrect: Due to rapid urbanization and rural-to-urban migration, the percentage share of rural areas in the total workforce experienced a steady decline (from ~77.8% in 1993–94 to ~70.9% in 2011–12).
- Statement 3 is correct: Non-farm rural economic activities (such as construction, manufacturing, and rural services) expanded significantly, generating a rising share of rural income.
- Statement 4 is correct: The growth rate of rural employment slowed down and turned negative during the mid-2000s (2004–05 to 2011–12).
In Statement 2, 'steadily increased' is an extreme generalization. Economic transformation and urbanization inherently cause the rural share of total employment to decline.
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