In the given passage few words are missing, which are followed by serial numbers. Choose the appropriate word from the given options that can fit into the given blank without altering the intended meaning.

Economic development and growth are supposed to ______________ (16) the employment situation in a country. Much of development literature _______________(17) this idea as a major expectation at least from the long-run perspective. It is also the case that the greater the amount of ________________ (18) labour in an economy and the greater the ________________(19) of underemployment, the slower will be the pace of change in the employment structure towards more regular and protected waged forms of employment. In fact, one can only give a proper perspective to the misunderstood policy challenges of __________________ (20) in a developing economy by first examining these matters at the broadest level with existing data.

The correct answer is improve.

To determine the most appropriate word for blank (16), let us analyze the context of the sentence:

"Economic development and growth are supposed to ______________ (16) the employment situation in a country."

Step-by-step contextual analysis:

1. Context & Tone: The passage discusses the relationship between economic growth and employment conditions. Economic progress is positively correlated with job creation, higher wages, and better working conditions.

2. Meaning of Options:

• generalize: To make a general statement or apply something broadly. (Does not fit contextually with "employment situation")

• deploy: To move into position for military action or bring into effective action. (Incorrect fit for "employment situation")

• improve: To make or become better. (Fits perfectly, as economic growth is expected to make employment conditions better)

• revere: To feel deep respect or admiration for something. (Irrelevant to economic concepts)

• prefer: To like one thing better than another. (Grammatically and contextually inappropriate here)

Therefore, improve is the most logical choice that fits blank (16) without altering the intended meaning of the sentence.