Economics · General Awareness

Unemployment and Labor Economics

1,018 Questions

Understand economic fundamentals through these questions on unemployment and labor economics. Topics cover the natural rate of unemployment, labor force participation, and official definitions of joblessness. This material is tailored for civil services and economics exam preparation.

Natural rate of unemploymentLabor force participationCauses of job displacementDefinition of unemploymentUnemployment reduction methodsGig economy impacts

Unemployment and Labor Economics Questions

Multiple choice economics unemployment in india types of unemployment unemployment and measures to remove employment and unemployment in india - problems and policies

When 5 workers are sufficient and 7 workers are actually employed, then the number of disguised unemployed is___.

  1. 5

  2. 7

  3. 2

  4. 12
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

If 5 workers are sufficient to produce the output, but 7 are employed, the 2 extra workers are redundant. Their marginal productivity is effectively zero, making them the disguised unemployed.

Multiple choice economics unemployment in india types of unemployment unemployment and measures to remove employment and unemployment in india - problems and policies

Disguised Unemployment in India is maximum in___.

  1. agricultural sector

  2. secondary sector

  3. tertiary sector

  4. none of the above
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

In India, the agricultural sector is characterized by a high density of labor relative to land and capital, leading to significant disguised unemployment where family members work on the same plot of land without increasing total yield.

Multiple choice economics unemployment in india types of unemployment unemployment and measures to remove employment and unemployment in india - problems and policies

Disguised employment refers to____.

  1. a situation where there are more employees and some having zero marginal productivity

  2. less employees plus zero marginal productivity

  3. both of the above

  4. none of the above
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Disguised unemployment is defined by a situation where more people are employed than necessary, meaning the marginal productivity of the additional workers is zero.

Multiple choice economics unemployment in india types of unemployment unemployment and measures to remove employment and unemployment in india - problems and policies

A situation of employment in which a person is apparently employed but his contribution to the production is almost nil is called ______ unemployment.

  1. structural

  2. chronic

  3. disguised

  4. cyclical
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

When a person appears to be working but their contribution to total production is nil, they are considered disguisedly unemployed.

Multiple choice economics unemployment in india types of unemployment unemployment and measures to remove employment and unemployment in india - problems and policies

Which of these explains Disguised Unemployment?

  1. When manual effort is replaced by mechanical effort and thereby workers are rendered jobless.

  2. When extra workers are employed and their removal will not affect the volume of total output.

  3. When these is a deadline in demand for production in particular industry.

  4. When industries offer employment for only a certain period of time in a year.
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Disguised unemployment means extra workers are employed and removing them doesn't reduce output - their marginal productivity is zero. Option A describes technological unemployment, C is structural (with typo 'deadline' for 'decline'), and D describes seasonal unemployment disguised unemployment, workers appear employed but add nothing.

Multiple choice economics unemployment in india types of unemployment unemployment and measures to remove employment and unemployment in india - problems and policies

Which of the following statements is false?

  1. Minimization of unemployment rate is an accepted goal of macroeconomic policy.

  2. Business Cycle have no effect on unemployment rates.

  3. During a recession, when output falls, the demand for labour falls and the unemployment rate increases.

  4. During a boom, the unemployment rate falls as the demand for labor increases.
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Business cycles have a significant effect on unemployment rates. During a recession, cyclical unemployment rises, and during a boom, it falls, making the statement that they have no effect false.

Multiple choice economics unemployment in india types of unemployment unemployment and measures to remove employment and unemployment in india - problems and policies

Which of these explains technological Unemployment?

  1. When manual effort is replaced by mechanical effort and thereby workers are rendered jobless.

  2. When extra workers are employed and their removal will not affect the volume of the total output.

  3. When these is a decline in demand in production in particular industry.

  4. When industries offer employment for only a certain period of time in a year.
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Technological unemployment is specifically caused by the replacement of human labor with machines or automated processes.

Multiple choice economics unemployment in india types of unemployment unemployment and measures to remove employment and unemployment in india - problems and policies

When unemployment tends to be long-term feature of a country, it is called ______ unemployment.

  1. open

  2. disguised

  3. chronic

  4. technological
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Chronic unemployment refers to a long-term, persistent state of unemployment that affects an economy over an extended period.

Multiple choice economics unemployment in india types of unemployment unemployment and measures to remove employment and unemployment in india - problems and policies

Which of the following statements is incorrect?

  1. Workers employed in Sugar Mills face seasonal unemployment.

  2. Due to introduction of new machinery, labour saving device etc. this structure replaced by machine is termed as Structural Unemployment.

  3. Frictional Unemployment is temporary phenomenon.

  4. Disguised Unemployment refers to a situation where removal of some workers will not affect the volume of total output.
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Option B is incorrect because the replacement of labor by machines is defined as technological unemployment, not structural unemployment. Structural unemployment is caused by shifts in the economy's structure, such as a decline in a specific industry.

Multiple choice economics unemployment in india types of unemployment unemployment and measures to remove employment and unemployment in india - problems and policies

Which of these explains seasonal unemployment?

  1. When manual effort is replaced by mechanical effort and thereby workers are rendered jobless.

  2. When extra workers are employed and their removal will not affect the volume of total output.

  3. When there is decline in demand for production in a particular industry.

  4. When industries offer employment for only a certain period of time in a year.
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Seasonal unemployment occurs when industries only require labor during specific times of the year, such as harvesting in agriculture or tourism in certain seasons.

Multiple choice economics unemployment in india types of unemployment unemployment and measures to remove employment and unemployment in india - problems and policies

Which of these explains structural unemployment?

  1. When manual effort is replaced by mechanical effort and thereby workers are rendered jobless.

  2. When extra workers are employed and their removal will not affect the volume of total output.

  3. When there is decline in demand for production in a particular industry.

  4. When industries offer employment for only a certain period of time in a year.
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Structural unemployment occurs when there is a mismatch between the skills of workers and the needs of the economy, often due to a decline in demand for a specific industry's products or services.

Multiple choice economics unemployment in india types of unemployment unemployment and measures to remove employment and unemployment in india - problems and policies

When some people in a society are unwilling to work at the prevailing wage rate and there are people who have income from property or some other sources and need not work, such people ________________.

  1. Casually unemployed.

  2. Chronically unemployed.

  3. Voluntarily unemployed.

  4. Disguisedly unemployed.
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Voluntary unemployment occurs when individuals choose not to work at the current market wage, perhaps because they have other sources of income or are unwilling to accept the prevailing conditions.

Multiple choice economics unemployment in india types of unemployment unemployment and measures to remove employment and unemployment in india - problems and policies

Some people who are unwilling to work at the prevailing wage rate is called ___________.

  1. frictional unemployment

  2. casual unemployment

  3. disguised unemployment

  4. voluntary unemployment.
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Voluntary unemployment refers to a situation where people are unemployed because they are unwilling to work at the existing wage rate.

Multiple choice economics unemployment in india types of unemployment unemployment and measures to remove employment and unemployment in india - problems and policies

Which type of unemployment occurs in an economy as a result of a general downturn in business activity? 

  1. Structural unemployment

  2. Cyclical unemployment

  3. Frictional unemployment

  4. Voluntary unemployment.
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Cyclical unemployment is directly caused by a general downturn in business activity, which reduces the demand for labor across the economy.

Multiple choice economics unemployment in india types of unemployment unemployment and measures to remove employment and unemployment in india - problems and policies

Disguised unemployment refers to _________.

  1. persons with no jobs

  2. more persons employed for a job which less can accomplish

  3. unemployment among woman

  4. unemployment of people whoa are above 60 years of age.
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Disguised unemployment is a situation where more people are employed in a job than are actually needed to perform it, meaning the marginal productivity of the extra workers is zero.