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

Unemployment when some workers are temporarily out of work while changing jobs is called __________.

  1. voluntary unemployment

  2. technological unemployment

  3. frictional unemployment

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

Frictional unemployment is the temporary unemployment that occurs when workers are between jobs, searching for new employment, or transitioning into the workforce.

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

Most of the disguised unemployment in India is found in the __________ sector.

  1. agricultural

  2. industrial

  3. export

  4. banking
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Disguised unemployment is when any person is employed but actually is not adding anything in the production. In simpler words when there are no marginal additions made a worker i.e. if that worker stops working it won't affect the output that is when he is unemployed in disguised manner. Such kind of unemployment in agriculture is found in the highest level in agriculture because majority of the agriculture activities involve labour also it is done as a family business hence finding out the contribution of every individual becomes difficult.

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

Seasonal unemployment refers mainly to _________.

  1. private sector industry

  2. public sector industry

  3. agriculture

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

Seasonal unemployment is most prevalent in the agricultural sector, where labor demand is high during planting and harvesting seasons but low during other times of the year.

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

When some workers tend to be displaced by machines, it is called ___________.

  1. voluntary unemployment

  2. technological unemployment

  3. frictional unemployment

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

Technological unemployment occurs when workers are displaced by machines or new technologies. It is a specific type of structural unemployment caused by automation.

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 a long term feature of a country it is called ___________.

  1. voluntary unemployment

  2. disguised unemployment

  3. casual unemployment

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

Chronic unemployment refers to a situation where unemployment persists as a long term feature of an economy. It is often associated with structural issues that do not resolve quickly.

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

Voluntary unemployment may be a national waste of __________.

  1. capital

  2. wealth

  3. human resources

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

Voluntary unemployment occurs when individuals choose not to work at the current wage rate. This represents a waste of human resources because the labor force is not being fully utilized.

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

The nature of usual unemployment in India is ________.

  1. seasonal

  2. disguised

  3. chronic

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

Chronic unemployment is often cited as a major characteristic of the Indian economy due to structural factors and population pressure. While seasonal and disguised unemployment exist, chronic unemployment describes the persistent nature of the issue.

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

Disguised unemployment is a state in which the ___________.

  1. marginal product of labour rises

  2. marginal product of labour is nil

  3. number of persons available for work are less than the input requirement

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

Disguised unemployment is a situation where more people are employed than are actually needed for a task. Consequently, 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

Disguised unemployment in India is mainly related to:
(i) Agricultural sector
(ii) Rural area
(iii) Industrial sector
(iv) Urban area
Select aspects of the Indian economy.

  1. (i) and (ii) only

  2. (ii) and (iv) only

  3. (iii) and (iv) only

  4. (i) and (iii) only
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Disguised unemployment is most prevalent in the agricultural sector, particularly in rural areas where family members work on small plots of land despite not contributing to additional output.

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

Open unemployment refers to ___________.

  1. usual status

  2. weekly status

  3. daily status

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

Open unemployment is typically measured by the 'usual status' of an individual, which looks at their activity over a long reference period (usually a year). It refers to those who are actively seeking work but cannot find it.

Multiple choice economics solution to basic economic problems under different economic systems supply curve and price determination in the market price mechanism and solutions supply

___________ are determined in the labour market by the demand for and the supply of labour force.

  1. Wages

  2. Rent

  3. Interest

  4. Profit
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

In a labour market, wages of the labour are decided on the demand and supply of the labour as if the demand of the labour increases their price also increases and vice-versa whereas if supply of the labour increases their price decreases and vice-versa. 

Multiple choice political science problem of unemployment in india introduction and features of unemployment quality of population unemployment- types, causes and measures

The main reasons for growing unemployment is____.

  1. massive computerization

  2. rapid population growth

  3. illiteracy

  4. defective education policy
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Rapid population growth is widely considered the primary driver of unemployment in developing economies, as the labor force grows faster than job creation.

Multiple choice political science problem of unemployment in india introduction and features of unemployment quality of population unemployment- types, causes and measures

Disguised unemployment is mainly found in ________.

  1. urban areas

  2. rural areas

  3. small scale sector

  4. highly qualified work force
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Disguised unemployment occurs when more people are employed than are needed for a task, which is most common in the agricultural sector in rural areas.