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

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.

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.