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Rayansh works as a teacher… (Class 12 Economics 2026, Q32a)

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EconomicsCBSE Class 12 · Board exam 2026, set 58/5/1 · 4 marks · Long answer

CBSE Class 12 Economics 2026: question 32(a)

Set in the CBSE Class 12 board exam of 2026, paper 58/5/1, section B, question 32(a), for 4 marks. Try it first; the hints and our step-by-step solution are below.

Q32(a) · 4 marks · Long answerCompetency-basedEmployment: Growth, Informalisation and Other Issues

Rayansh works as a teacher in a school. He receives a fixed monthly salary, social security benefits, paid leave and medical allowances. His friend Mohan works at a small toy shop. He has very little income, he does not have access to provident fund, paid leave or health insurance.

Classify the types of sectors Rayansh and Mohan are working in and highlight the distinction between the two sectors.

Source: official question paper from cbse.gov.in (PDF). See it in the full 2026 board paper, set 58/5/1.

Hints

Open one hint at a time and try again before the next.

Hint 1

Who gets provident fund and paid leave?

Hint 2

The dividing line is 10 hired workers.

Step-by-step solution

Each step shows the marks it earns, as an examiner would award them. Checked by an independent re-solve from the question paper.

  1. Rayansh (teacher with fixed salary and benefits) works in the formal sector.

    ½ mark

  2. Mohan (toy-shop worker with low income and no benefits) works in the informal sector.

    ½ mark

  3. The formal sector covers all public-sector establishments and private establishments employing 10 or more hired workers. Its workers get regular wages and social security such as provident fund, pension, paid leave and medical benefits.

    1½ marks

  4. The informal sector covers private establishments with fewer than 10 hired workers (and farmers, the self-employed, etc.). Its workers get no regular income or social security and can be dismissed without compensation.

    1½ marks

Answer: Rayansh: formal sector; Mohan: informal sector. Formal jobs carry regular pay and social security; informal jobs do not.

Where the marks are

  • Rayansh in formal sector (½)
  • Mohan in informal sector (½)
  • Formal sector features (1½)
  • Informal sector features (1½)

Revise the chapter

Practise this chapterBoard-style questions from Employment: Growth, Informalisation and Other Issues, one at a time, marked against the answer key and marking points.Back to the full paper2026 board paper, set 58/5/1: every question, by section.

The question is transcribed from the official paper; figures are described in words. The solution, hints and chapter tag are ours. Spotted an error? Write tosupport@questionbuddy.in.