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

The backlog of unemployed in India is continuously ________.

  1. increasing

  2. decreasing

  3. fluctuating

  4. no specific trend
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Due to rapid population growth and the inability of the economy to create enough jobs to keep pace, the number of unemployed people in India has been consistently rising.

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

Which of the following are causes of unemployment in India?

  1. Growth without adequate employment opportunities

  2. Growing population

  3. Inappropriate technology and education system

  4. All of above
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

All the listed factors, including population growth, inadequate job creation, and educational mismatches, contribute to the complex problem of unemployment in India.

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

______ unemployment is a long term unemployment

  1. Voluntary

  2. Frictional

  3. Casual

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

Chronic unemployment refers to a long-term situation where a person is unable to find work for an extended period, unlike frictional or voluntary unemployment which are usually temporary.

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

Usual status measures the number of per-sons who may be _______ unemployed.

  1. chronically

  2. disguisedly

  3. educated

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

The 'Usual Status' approach in Indian labor statistics is designed to identify individuals who are chronically unemployed, meaning they were unemployed for the major part of the year.

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

Unemployment rate among educated was  ______ than for uneducated. 

  1. higher

  2. lower

  3. equal

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

In India, the unemployment rate among educated individuals is generally higher than among the uneducated, often due to a mismatch between the skills acquired and the requirements of the job market.

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

If in a population of $1000$ people, $400$ are in the labor force and $392$ are employed, what is the unemployment rate?

  1. $2\%$
  2. $8\%$
  3. $6\%$
  4. $4\%$
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

The unemployment rate is calculated as (Unemployed / Labor Force) * 100. Here, the labor force is 400 and the employed are 392, so the unemployed are 400 - 392 = 8. The rate is (8 / 400) * 100 = 2%.

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

Measure estimates the number of persons who may be said to be chronically unemployed.

  1. Usual status

  2. Current weekly status.

  3. Current daily status.

  4. Current yearly status.
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Usual status is the primary measure used to identify chronic unemployment, as it considers the activity status of an individual over the entire preceding year.

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

Work force refers to the part of _______________.

  1. labour force, which is employed.

  2. population, which is unemployed.

  3. population, which is forced to work.

  4. labour force, which is unemployed.
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

The labour force is the sum of the employed and the unemployed. The work force is defined specifically as the portion of the labour force that is currently employed.

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

Which of the following is measures of Unemployment?

  1. Usual Status.

  2. Current Weekly Status.

  3. Current Daily Status.

  4. All of the above
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Usual Status, Current Weekly Status, and Current Daily Status are all standard methodologies used by the NSSO to measure unemployment in India.

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

Situation, where some people are unwilling to work at the prevailing wage rate, is called _____________.

  1. Voluntary unemployment

  2. Technological unemployment

  3. Frictional unemployment

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

Voluntary unemployment occurs when a person is capable of working but chooses not to accept a job at the current market wage rate.

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

Cause of unemployment is due to ________________.

  1. lack of financial resources

  2. slow growth problem

  3. faulty employment planning

  4. all of the above
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Unemployment in India is a complex issue caused by a combination of financial constraints, slow economic growth, and poor planning.

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

Underemployment occurs when people _____.

  1. do not want to work

  2. are working in a lazy manner

  3. are working less than what they are capable of doing

  4. are not paid for their work
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Underemployment may be defined as “a situation in which the person is capable of working both physically and mentally at the existing wage rate, but does not get a job to work”. Open underemployment is a situation wherein a large section of the labour force does not get a job that may yield them regular income. This type of unemployment can be seen and counted in terms of the number of unemployed persons. The labour force expands at a faster rate than the growth rate of economy. Therefore, all people do not get jobs.

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

Disguised unemployment can be observed in _____.

  1. rural areas

  2. urban areas

  3. both 1 and 2

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

Disguised unemployment exists where part of the labour force is either left without work or is working in a redundant manner where worker's productivity is essentially zero. It is unemployment that does not affect aggregate output. An economy demonstrates disguised unemployment when productivity is low and too many workers are filling too few jobs. It can be observed in rural as well as in urban areas.

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

People who are engaged throughout the day but do not contribute to the production output are called ____.

  1. openly unemployed

  2. openly employed

  3. underemployed

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

Underemployment refers to a job that is insufficient in some important way for a worker, relative to a standard, which results in the under-utilization of the worker. Examples include holding a part-time job despite desiring full-time work, and overqualification, where the employee has education, experience, or skills beyond the requirements of the job.