Economics · General Awareness

Unemployment and Labor Economics

1,013 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

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.

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

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.