Economy & Society – Solved Questions of Sociology – UGC NET

Exchange, Gift, Capital, Labour and Market

1. Find the chronological sequence of the following: (PYQ – JUNE 2020)

(a) Implementation of Panchayat Raj
(b) Integrated Rural Development Programme
(c) Reservation of seats in Village Panchayats
(d) Community Development Programme

Choose the correct answer from the options given below:

(A) (a), (b), (c), (d)
(B) (b), (c), (d), (a)
(C) (c), (d), (a), (b)
(D) (d), (a), (b), (c)

Correct Answer: (D) (d), (a), (b), (c)

Explanation:

The correct chronological sequence is Community Development Programme → Implementation of Panchayat Raj → Integrated Rural Development Programme → Reservation of seats in Village Panchayats.

The Community Development Programme (CDP) was launched in 1952 as one of independent India’s earliest and most ambitious rural development initiatives. Its objective was to promote the overall development of rural areas through improvements in agriculture, irrigation, education, health, communication, and community participation. The programme sought to involve local people in development activities and laid the foundation for future rural development policies.

The Implementation of Panchayat Raj followed the recommendations of the Balwant Rai Mehta Committee (1957), which emphasized democratic decentralization and local participation in development administration. Panchayati Raj institutions were formally introduced in 1959, beginning in Rajasthan and later expanding to other states. These institutions were designed to strengthen local self-government and encourage people’s participation in rural development.

The Integrated Rural Development Programme (IRDP) was launched nationwide in 1980. It aimed at alleviating rural poverty by providing financial assistance, subsidies, and productive assets to poor households. The programme focused on creating self-employment opportunities for economically weaker sections, including small and marginal farmers, agricultural labourers, rural artisans, and members of Scheduled Castes and Scheduled Tribes.

The Reservation of seats in Village Panchayats became a constitutional requirement with the enactment of the 73rd Constitutional Amendment Act, 1992, which came into effect in 1993. The amendment provided constitutional status to Panchayati Raj institutions and mandated reservations for Scheduled Castes, Scheduled Tribes, and not less than one-third of seats for women in village, intermediate, and district-level panchayats. This marked a significant step toward inclusive and participatory local governance.

The sequence reflects the evolution of rural development and democratic decentralization in India, beginning with community-based development efforts in the 1950s, followed by local self-government institutions, targeted poverty alleviation programmes in the 1980s, and finally constitutional measures to ensure broader political participation and representation through reservations in Panchayati Raj institutions.

2. The ‘collective bargaining’ usually centres around: (PYQ – JUNE 2013)

(A) Share in profit, job security and good working conditions
(B) Job satisfaction, job security and new technology
(C) Exploitation, profit generation and reinvestment
(D) Corporate responsibility, global networking and profit sharing

Correct Answer: (A) Share in profit, job security and good working conditions

Explanation:

Collective bargaining is a process of negotiation between employers and employees, usually represented by trade unions, for determining the terms and conditions of employment. It is one of the most important mechanisms in industrial relations and serves as a means through which workers collectively protect and advance their economic and social interests. The concept gained prominence with the growth of industrialization and the development of organized labour movements.

The primary issues discussed during collective bargaining generally include wages, profit-sharing arrangements, job security, working conditions, working hours, employee benefits, promotion policies, and grievance redressal mechanisms. Workers seek fair compensation for their labour, protection against arbitrary dismissal, safe and healthy workplaces, and opportunities for economic advancement. Employers, on the other hand, negotiate to maintain productivity, industrial peace, and organizational efficiency.

Option (A) correctly identifies the major concerns of collective bargaining because share in profit, job security, and good working conditions have historically been central demands of labour organizations. Through collective bargaining agreements, workers may secure wage increases, bonus payments, health benefits, pension schemes, and protections against unfair labour practices. Such agreements help reduce industrial conflict and create a structured framework for resolving disputes.

The concept has been discussed extensively by scholars of industrial sociology and labour relations. Thinkers such as Sidney and Beatrice Webb viewed trade unions and collective bargaining as essential institutions for balancing the unequal power relationship between employers and workers. Collective bargaining enables employees to negotiate as a group rather than as isolated individuals, thereby strengthening their bargaining power in the labour market.

In modern industrial societies, collective bargaining remains an important instrument for promoting industrial democracy, improving labour welfare, and maintaining harmonious relations between management and workers. It plays a crucial role in determining employment conditions and ensuring that workers participate in decisions affecting their economic and occupational well-being.

3. Bonded labour is a: (PYQ – JUNE 2013)

(A) Cause of rural poverty and illiteracy
(B) Cause of prevailing hegemony of upper castes
(C) Product of rural poverty but cause of illiteracy and hegemony of upper castes
(D) Product of rural poverty, illiteracy and hegemony of upper castes

Correct Answer: (D) Product of rural poverty, illiteracy and hegemony of upper castes

Explanation:

Bonded labour refers to a system in which a person is forced to work for an employer or creditor in order to repay a debt or obligation. In many parts of rural India, this system historically emerged because poor families lacked access to land, credit, education, and alternative employment opportunities. As a result, they often borrowed money from landlords, moneylenders, or dominant caste groups and became trapped in long-term labour arrangements that severely restricted their freedom.

Bonded labour is generally understood as a product of rural poverty because extreme economic deprivation compels individuals and families to accept exploitative work conditions. When people have insufficient income, land, or resources for survival, they become vulnerable to debt bondage. Poverty creates a situation where repayment of loans becomes difficult, leading to dependence on employers and creditors.

It is also a product of illiteracy. Lack of education prevents workers from understanding legal rights, employment contracts, debt conditions, and government welfare schemes. Illiterate workers are often unable to challenge exploitation or seek institutional support. The absence of education limits social mobility and reinforces dependence on traditional power structures.

Another important factor is the hegemony of upper castes in many rural areas. Sociologists have pointed out that bonded labour has often been associated with unequal caste relations, where economically and socially dominant groups exercised control over marginalized communities. Members of Scheduled Castes, Scheduled Tribes, and other disadvantaged groups were historically overrepresented among bonded labourers because of entrenched social inequalities and limited access to resources.

The system has been examined through perspectives such as agrarian sociology, caste stratification, and dependency relations. Scholars studying rural India have shown that bonded labour is not merely an economic arrangement but also a social institution sustained by unequal power relations, caste dominance, indebtedness, and restricted access to opportunities. The Bonded Labour System (Abolition) Act, 1976 was enacted to legally abolish bonded labour in India, cancel bonded debts, and provide for the rehabilitation of freed labourers, reflecting the recognition that bonded labour originates from the combined effects of poverty, illiteracy, and social domination.

4. Who argued that “in the wake of labour exploitation the Indian peasantry has really taken a class character”? (PYQ – DEC 2015)

(A) Rajendra Singh
(B) Virginius Xaxa
(C) R. K. Jain
(D) Utsa Patnaik

Correct Answer: (D) Utsa Patnaik

Explanation:

Utsa Patnaik is a prominent Indian economist and agrarian scholar known for her studies on rural class structure, agrarian relations, and peasant differentiation in India. She argued that the Indian peasantry cannot be understood simply as a homogeneous social category based on agriculture. Instead, economic inequalities, ownership of land, control over resources, and relations of labour exploitation have created distinct class divisions within the peasantry. Her observation that “in the wake of labour exploitation the Indian peasantry has really taken a class character” reflects a Marxist analysis of rural society.

According to Patnaik, the process of agricultural development and commercialization has led to the emergence of different rural classes such as rich peasants, middle peasants, poor peasants, and landless agricultural labourers. These groups occupy different positions in the production system and have differing economic interests. Rich peasants often employ wage labour and control larger amounts of land and capital, while poor peasants and agricultural labourers depend on selling their labour power for survival. Such relationships create conditions of exploitation that are characteristic of class-based societies.

Patnaik’s analysis challenged earlier views that emphasized only caste, tradition, or community solidarity in understanding rural India. While acknowledging the continuing importance of caste, she highlighted how economic relations and labour exploitation increasingly shape social divisions and conflicts in the countryside. Her work demonstrated that agrarian inequalities are rooted not only in social status but also in ownership and control of productive resources.

The concept of the class character of the peasantry became significant in debates on rural development, peasant movements, and agrarian change. It helped sociologists and economists examine issues such as land reforms, rural poverty, agricultural labour, tenancy, and peasant struggles through the framework of class relations. Patnaik’s contributions remain important in the study of agrarian sociology, political economy, and the transformation of rural India under changing economic conditions.

5. When did the First National Commission on Labour submit its report on labour problems in organized and unorganized sectors? (PYQ – JAN 2017)

(A) 2002
(B) 1969
(C) 1952
(D) 2006

Correct Answer: (B) 1969

Explanation:

The First National Commission on Labour (NCL) was constituted by the Government of India in 1966 under the chairmanship of Justice P. B. Gajendragadkar, a former Chief Justice of India. The Commission was established to conduct a comprehensive review of labour conditions, labour laws, industrial relations, trade union activities, and workers’ welfare in both the organized and unorganized sectors of the economy. After extensive study and consultation with employers, workers, trade unions, and government agencies, the Commission submitted its report in 1969.

The report is regarded as a landmark document in the history of Indian labour policy because it examined the changing nature of industrial relations in post-independence India. It analyzed issues such as wages, working conditions, social security, collective bargaining, labour welfare, dispute settlement mechanisms, and the functioning of trade unions. The Commission also highlighted the vulnerabilities of workers employed in the unorganized sector, where legal protection and social security measures were often inadequate.

One of the major concerns of the Commission was the multiplicity of labour laws and the need for greater uniformity and simplification. It recommended strengthening the framework of industrial democracy, improving employer-employee relations, and promoting effective mechanisms for resolving industrial disputes. The report also emphasized the importance of workers’ participation in management and the development of responsible trade unionism.

The recommendations of the First National Commission on Labour influenced several labour policy reforms and served as an important reference for subsequent discussions on labour legislation in India. Many of its observations continued to shape debates on labour welfare, employment security, industrial relations, and social justice for workers. Several decades later, the government established the Second National Commission on Labour in 1999, which submitted its report in 2002, but the First National Commission’s report remains closely associated with the year 1969 and the foundational study of labour problems in India.

6. When did the First National Commission on Labour submit its report on labour problems in organized and unorganized sectors? (PYQ – DEC 2018)

(A) 2002
(B) 1969
(C) 1952
(D) 2006

Correct Answer: (B) 1969

Explanation:

The First National Commission on Labour (NCL) was appointed by the Government of India in 1966 under the chairmanship of Justice P. B. Gajendragadkar to undertake a comprehensive review of labour conditions and industrial relations in the country. The Commission was entrusted with examining the status of workers in both the organized sector, which included factories, mines, plantations, and registered industries, and the unorganized sector, where workers often lacked formal employment contracts, social security, and legal protection. After extensive research and consultations, the Commission submitted its report in 1969.

The report is considered one of the most significant documents in the evolution of India’s labour policy. It analyzed various aspects of labour administration, wage structures, industrial disputes, trade union movements, labour welfare measures, social security provisions, and employment conditions. The Commission emphasized the need to balance economic growth with workers’ rights and social justice. It also highlighted the challenges faced by unorganized workers, whose conditions were often characterized by low wages, job insecurity, and limited access to welfare benefits.

An important contribution of the Commission was its recommendation for the rationalization and simplification of numerous labour laws. It examined the functioning of trade unions, the system of collective bargaining, and mechanisms for industrial dispute resolution. The Commission also advocated greater worker participation in management and stressed the importance of creating   harmonious industrial relations for sustained economic development.

The findings and recommendations of the First National Commission on Labour influenced labour legislation and policy discussions for several decades. Its report became a foundational reference for scholars, policymakers, labour administrators, and trade union leaders studying industrial relations and labour welfare in India. The later Second National Commission on Labour, established in 1999 and reporting in 2002, built upon many of the issues first systematically examined by the Commission that submitted its landmark report in 1969.

7. Which country is an example of ‘state capitalism’? (PYQ – JUNE 2019)

(A) China
(B) India
(C) Switzerland
(D) France

Correct Answer: (A) China

Explanation:

State capitalism is an economic system in which the state plays a dominant role in directing and influencing economic activities while operating within a broadly capitalist framework. In this system, markets, private enterprise, and profit-making continue to exist, but the government retains significant control over key industries, major financial institutions, strategic investments, and economic planning. The state often owns or supervises large enterprises while simultaneously encouraging competition and market-oriented growth.

China is widely regarded as the most prominent contemporary example of state capitalism. Since the economic reforms initiated by Deng Xiaoping in 1978, China has moved away from a strictly centralized socialist economy and adopted market-oriented policies. These reforms encouraged private entrepreneurship, foreign investment, and international trade. At the same time, the Chinese state maintained substantial control over major sectors such as banking, energy, telecommunications, transportation, and heavy industry through large state-owned enterprises (SOEs).

The Chinese model combines elements of socialist governance with capitalist methods of production and exchange. Private firms and market mechanisms contribute significantly to economic growth, yet the government continues to guide long-term development strategies, allocate resources in key sectors, and influence investment decisions. This combination has led many scholars to describe China’s economic structure as state capitalism rather than pure capitalism or traditional socialism.

From the perspective of political economy, state capitalism differs from laissez-faire capitalism because the state acts not merely as a regulator but also as a major economic actor. It seeks to achieve national development goals, technological advancement, industrial expansion, and global competitiveness through direct intervention in the economy. China’s rapid industrialization, export-led growth, infrastructure development, and expansion of state-owned corporations are often cited as examples of the functioning of state capitalism in practice.

The concept has attracted considerable attention in studies of globalization and development because it challenges the assumption that economic modernization necessarily requires minimal state involvement. China’s experience demonstrates how a strong state can coexist with market institutions, private investment, and global economic integration while retaining substantial control over strategic sectors of the economy.

8. The ability of a worker to use muscles and brain to transform the environment is called: (PYQ – DEC 2019)

(A) Labour union
(B) Labour power
(C) Labour unrest
(D) Labour movement

Correct Answer: (B) Labour power

Explanation:

The term labour power refers to the physical and mental capacities possessed by a worker that can be used in the process of production. It includes the worker’s strength, skills, knowledge, intelligence, creativity, and ability to perform work. When a worker uses both muscles and brain to transform natural resources and the surrounding environment into useful goods and services, the worker is exercising labour power.

The concept of labour power is most closely associated with Karl Marx and his analysis of the capitalist mode of production. In Marxist theory, labour power is distinct from labour itself. Labour power is the worker’s capacity to work, while labour is the actual activity performed during the production process. Under capitalism, workers do not generally sell their labour directly; they sell their labour power to employers in exchange for wages. Employers then utilize this labour power in the production of commodities.

Marx argued that labour power is a unique commodity because it has the ability to create value greater than its own cost. The wage paid to a worker represents the value necessary for the worker’s maintenance and reproduction, but the worker often produces more value during the working day than the value received as wages. This difference forms the basis of surplus value, a central concept in Marx’s theory of capitalist exploitation.

The idea of labour power highlights the active role of human beings in transforming nature and creating economic wealth. Through the application of physical effort, technical skills, experience, and intellectual abilities, workers convert raw materials into products and services that satisfy human needs. Modern economic activities, whether in agriculture, industry, or the service sector, depend on the effective utilization of labour power.

The other options are not appropriate in this context. A labour union is an organization formed by workers to protect their interests, labour unrest refers to conflicts and dissatisfaction among workers, and a labour movement denotes collective efforts by workers to improve working conditions and secure rights. The concept describing a worker’s ability to use physical and mental capacities in transforming the environment is labour power, a fundamental category in Marxist political economy and the sociology of work.

9. Production characterized by large numbers of standardized products made by highly specialized workers is known as: (PYQ – JUNE 2022)

(A) Factory production
(B) Capitalist production
(C) Mass production
(D) All of the above

Correct Answer: (C) Mass production

Explanation:

Mass production refers to a system of manufacturing in which large quantities of standardized products are produced through the use of specialized machinery, division of labour, and highly specialized workers. In this method, each worker performs a specific and repetitive task within the overall production process, allowing goods to be produced quickly, efficiently, and at lower cost. The defining feature of mass production is the creation of identical products on a large scale for a broad market.

The concept became particularly significant during the late nineteenth and early twentieth centuries with the growth of modern industrialization. It is closely associated with Henry Ford and the development of the assembly line system in automobile manufacturing. Ford’s production methods dramatically increased productivity by breaking down complex tasks into simple operations performed by specialized workers. This approach reduced production time and made consumer goods more affordable for the general population.

In sociology and industrial studies, mass production is linked to the principles of scientific management developed by Frederick Winslow Taylor. Taylor advocated the systematic division of work into smaller tasks to improve efficiency and maximize output. Workers became increasingly specialized, focusing on a limited set of activities rather than producing an entire product. This specialization contributed to greater productivity but also generated debates about worker alienation, monotony, and loss of control over the labour process.

Although mass production often takes place in factories and is commonly found in capitalist economies, the terms factory production and capitalist production are broader concepts. Factory production simply refers to goods being produced in a factory setting and does not necessarily involve large-scale standardized output. Capitalist production refers to production organized for profit within a capitalist economic system and may include various forms of manufacturing beyond mass production. The specific description of producing large numbers of standardized products through highly specialized labour directly corresponds to mass production.

Mass production played a crucial role in the expansion of modern consumer societies by increasing the availability of automobiles, household appliances, textiles, electronics, and other manufactured goods. It remains a fundamental feature of industrial economies, although contemporary production systems increasingly combine mass production techniques with automation, flexible specialization, and advanced technologies.

10. Feminisation of labour force denotes: (PYQ – MAR 2023)

(a) a process of empowerment of women
(b) globalisation creating more jobs for women
(c) increase in participation of women in labour market
(d) a process of subjugation of women
(e) decrease in participation of women in labour market

Choose the correct answer:

(A) (a) only
(B) (b) only
(C) (c) only
(D) (d) and (e) only

Correct Answer: (C) (c) only

Explanation:

The term feminisation of labour force refers primarily to the increase in the participation of women in the labour market. It describes a situation in which a growing proportion of women become involved in paid economic activities across different sectors such as manufacturing, services, agriculture, information technology, retail, and informal employment. In labour studies and sociology, the concept is used to examine changing gender patterns in employment and the expanding presence of women in the workforce.

The feminisation of labour force became an important topic in discussions of globalisation, industrial restructuring, and economic liberalisation. Many developing countries experienced a rise in women’s employment as export-oriented industries, garment manufacturing, electronics assembly, and service sectors expanded. Employers often recruited women because they were perceived as more flexible workers and were frequently employed in labour-intensive industries. While globalization has contributed to increased employment opportunities for women in many regions, feminisation of labour is not defined solely as the creation of jobs through globalization. It specifically denotes the growing numerical participation of women in the labour market.

Sociologists and feminist scholars point out that an increase in women’s labour force participation does not automatically mean empowerment. Employment can improve women’s economic independence, bargaining power, and social status, but many women continue to face challenges such as wage discrimination, occupational segregation, job insecurity, lack of social protection, and the burden of unpaid domestic work. For this reason, feminisation of labour and women’s empowerment are related but distinct concepts.

Some scholars have also highlighted that feminisation of labour may involve the expansion of informal, temporary, or low-paid employment, where women are concentrated in vulnerable forms of work. This has led to debates about whether increased participation always results in improved working conditions. Nevertheless, the standard sociological and economic meaning of the term remains the increase in women’s participation in the labour market.

The concept is closely linked to studies of gender and work, labour market transformation, global production networks, and the changing role of women in modern economies. Researchers such as Guy Standing have discussed feminisation in the context of labour flexibility and global economic restructuring, while feminist scholars have examined its implications for gender equality, employment opportunities, and workplace conditions.

11. A worker who possesses a diversity of skills and can easily move from job to job is called: (PYQ – DEC 2023)

(A) Industrial worker
(B) Portfolio worker
(C) Participatory worker
(D) Organizational worker

Correct Answer: (B) Portfolio worker

Explanation:

A portfolio worker is a worker who possesses a wide range of skills, competencies, and experiences and is capable of moving between different jobs, projects, or occupations with relative ease. The concept emerged in discussions of the changing nature of work in post-industrial societies, where traditional lifelong employment in a single organization has increasingly been replaced by flexible, project-based, and skill-oriented forms of work. Rather than depending on one employer, portfolio workers often build careers by combining multiple assignments, contracts, or professional roles.

The term gained prominence through the work of management thinker Charles Handy, who used the idea of a portfolio career to describe individuals who maintain a collection of skills and employment opportunities instead of relying on a single permanent job. Such workers continuously update their abilities and adapt to changing labour market demands. Their employability depends largely on versatility, knowledge, and the capacity to perform different functions across various sectors.

The rise of portfolio workers is closely associated with globalisation, technological change, the growth of the knowledge economy, and the expansion of flexible employment arrangements. Modern organizations often seek workers who can handle multiple tasks, learn new technologies, and adapt to changing workplace requirements. As a result, multi-skilled individuals are better positioned to shift between occupations, industries, and projects than workers whose expertise is confined to a narrow specialization.

From a sociological perspective, the portfolio worker represents a departure from the traditional industrial model of employment, where workers often spent their entire careers in one factory or organization performing highly specialized tasks. Contemporary labour markets increasingly value flexibility, creativity, communication skills, problem-solving abilities, and continuous learning. Portfolio workers are often found in fields such as information technology, consulting, media, education, design, research, and other professional services where adaptability is particularly important.

The other options do not accurately describe a worker with diverse skills and occupational mobility. An industrial worker refers broadly to a worker employed in industry, a participatory worker is not a standard category in labour sociology, and an organizational worker simply denotes a worker associated with an organization. The concept that specifically refers to a multi-skilled individual capable of moving easily from one job to another is the portfolio worker, a significant feature of contemporary labour markets and flexible employment systems.