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

'Disguised unemployment' refers to ____ .

  1. individuals with no jobs

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

  3. unemployment among women

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

Disguised unemployment is a kind of unemployment in which there are people who are visibly employed but are actually unemployed. This situation is also known as 'Hidden Unemployment'. In such a situation more people are engaged in a work than required.

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

Consider the following statements:


1. The maximum unemployment in India is in rural areas.
2. There is disguised unemployment in agricultural sector.
3. Industrialisation has rendered people jobless in India.

Which of the statement(s) given above is/are correct?

  1. 1 and 2

  2. 1 and 3

  3. 2 and 3

  4. 1, 2 and 3
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Disguised unemployment is primarily traced in the agricultural and the unorganised sectors of the economy. Agriculture provides employment to almost 51% of the total population. However, the sector’s contribution to the country’s GDP is just 12-13%.

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

Educated unemployment arises due to ______.

  1. shortage of raw material

  2. lack of skill-based education

  3. high illiteracy rate

  4. high levels of employment in tertiary sector
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Unemployment is a situation of not getting the work and wages with eligible conditions. People are getting education but not getting the jobs is educated unemployment.

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. are not employed

  2. are slow workers

  3. are not working to the full extent

  4. are not increasing the production even after labouring
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Underemployment has been studied from a variety of perspectives, including economics, management, psychology, and sociology. In economics, for example, the term underemployment has three different distinct meanings and applications. All meanings involve a situation in which a person is working, unlike unemployment, where a person who is searching for work cannot find a job. All meanings involve under-utilization of labour which is missed by most official (governmental agency) definitions and measurements of unemployment.

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

Where is seasonal unemployment found?

  1. Urban areas

  2. Rural areas

  3. In remote areas

  4. Both in rural and urban areas
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation
The period of seasonal unemployment in India varies from state to state, depending upon the methods of farming, nature of soil and possibility of multiple cropping. Hence, seasonal unemployment is found in rural areas as the main occupation there is agriculture.
Multiple choice political science problem of unemployment in india introduction and features of unemployment quality of population unemployment- types, causes and measures

If a person cannot find a job during some months of the year, which type of employment is this called?

  1. Structural unemployment

  2. Cyclical unemployment

  3. Seasonal unemployment

  4. none of these
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Seasonal unemployment is one of the many types of unemployment. Seasonal unemployment is the unemployment created from seasonal variations in demand for goods and services. In an economy there will be certain times of year when the demand for goods and services are lower than normal.

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

Disguised unemployment refers to ___________.

  1. people with no job

  2. more people employed for a job where less can fit in

  3. unemployment among women

  4. unemployment of people over sixty years of age
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Disguised unemployment is either when the workforce is unemployed or when their contribution to the output is zero.

That is unemployment does not affect the output.
 For example, in Indian villages, where most of the unemployment exists in this form people are found to be apparently engaged in agricultural activities. If in a situation even if many workers are withdrawn, the same work will continue to be done by fewer people. It follows that all the workers are not needed to maintain the existing level of production. The contribution of such labourers to production is thus zero or near zero.

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

Which one of the following is unemployment rate?

  1. Percentage of unemployed persons to total population.

  2. Percentage of unemployed persons to total labour force.

  3. Percentage of unemployed persons to total workforce.

  4. Percentage of unemployed persons to total persons not in labour force.
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Unemployment means the percentage of total work force which is unemployed and is willing to work, thus, looking for a paid job. Unemployment rate is one of the most closely watched statistics because a rising rate is seen as a sign of weakening economy that may call for cut in interest rate.

Unemployment rate $=\displaystyle\frac{Unemployed\ workers}{Total\ workforce}$.

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

Most common forms of unemployment in India is/are _______.

  1. seasonal unemployment

  2. disguised unemployment

  3. open unemployment

  4. Both A and B
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

 

Seasonal and Disguised unemployments are regarded as the most common in India. In seasonal unemployment, it happens only in the seasonal months of the year. And, disguised unemployment in which worker's contribution to the output is negligible. 
Hence, both A and B is the correct answer.

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

Open unemployment refers to people __________.

  1. who are not willing to work

  2. who are willing to work but do not get jobs

  3. who leave their jobs in search of better ones

  4. who have been dismissed because of corrupt practices
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Open unemployment refers to the unavailability of employment/job opportunities for people who are willing to work. Open unemployment is the basic and most significant measure of unemployment rate in an economy.

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 due to _________.

  1. underemployment

  2. seasonal nature of work

  3. strike and lock-out

  4. structural changes in the economy
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Disguised unemployment is essentially a form of underemployment where more people are engaged in a job than are required, meaning their contribution is not fully utilized.

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

Disguised unemployment refers to the situation when. _________.

  1. marginal productivity of the surplus workers is zero

  2. marginal productivity of the surplus workers is less than average productivity

  3. the marginal productivity of the surplus workers is constant

  4. marginal productivity of the surplus workers is falling sharply
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Disguised unemployment exists when the marginal productivity of additional workers is zero, meaning removing them would not decrease total output.

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 not a cause of unemployment in India?

  1. Growing population

  2. Lack of employment opportunity

  3. Inappropriate education system

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

Liberalisation is an economic policy aimed at opening up the economy and is generally considered a driver of growth, not a direct cause of unemployment.

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 / are a cause(s) of frictional unemployment?

  1. Non-availability of work due to strike and lockout.

  2. Temporary unemployment due to change over in job.

  3. Both

  4. None
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Frictional unemployment arises from the time lag between leaving one job and finding another, which can be caused by various factors including temporary labor disputes or job transitions.

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

Structural unemployment is mainly due to ________.

  1. structural changes in the economy

  2. technological development

  3. growth in GDP

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

Structural unemployment arises from fundamental shifts in the economy, such as changes in technology or consumer demand that make certain skills obsolete. It is a mismatch between the skills workers possess and the skills employers require.