Question

Consider the following statements regarding ‘employment elasticity’: 1. It is a measure of the percent change in employment associated with a unit percentage point change in economic growth. 2. Construction has higher employment elasticity than agriculture. 3. Employment elasticity is a measure of the percentage change in employment associated with a 10% point change in economic growth. Which of the statements given above is/are incorrect?

A 1 only
B 2 only
C 3 only
D Both 1 and 2
E Both 2 and 3
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