On the basis of employment conditions, the economy is divided into

[amp_mcq option1=”organized and unorganized sectors” option2=”private and public sectors” option3=”seasonal and disguised sectors” option4=”primary, secondary and tertiary sectors” correct=”option1″]

This question was previously asked in

UPSC CAPF – 2021

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The correct answer is (A) organized and unorganized sectors.

On the basis of employment conditions, the economy is traditionally divided into the organized (or formal) sector and the unorganized (or informal) sector. This classification is based on factors such as regularity of employment, hours of work, wages, provision of social security benefits (like provident fund, gratuity, pension), and compliance with government rules and regulations.

Other classifications of the economy include:
– Private and public sectors: Based on ownership of assets and delivery of services.
– Seasonal and disguised sectors: These are not standard sector classifications but relate to types of employment/unemployment. Seasonal unemployment occurs in certain seasons (e.g., agriculture), and disguised unemployment refers to a situation where more people are employed than necessary.
– Primary, secondary, and tertiary sectors: Based on the nature of economic activity (extracting raw materials, manufacturing, services).

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