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 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.

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

Which of these measures would not reduce natural rate of unemployment?

  1. Creation of more jobs

  2. Reducing the age of superannuation

  3. Hike in unemployment allowance

  4. Employment oriented education system
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

The natural rate of unemployment is the baseline level of unemployment in a healthy economy. Increasing unemployment allowances reduces the incentive for the unemployed to seek work, thereby potentially increasing, rather than reducing, the natural rate.

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

Unemployment is likely to be maximum during;

  1. Inflation

  2. Depression

  3. Economic slow down

  4. Flood or other natural calamities
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Depression is characterized by a severe and prolonged downturn in economic activity, leading to mass layoffs and high levels of involuntary unemployment across all sectors.

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

Over __________ of India's workforce is disguisedly unemployed.

  1. $1/3$rd
  2. $1/2$nd
  3. $1/4$th
  4. $1/5$th
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Disguised unemployment is prevalent in the Indian agricultural sector, where more people are engaged in work than are actually required. Estimates often suggest that about one-third of the workforce is affected by this.

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

The unemployment rate between 1999-2000 to 2004-05 was _______.

  1. went up

  2. came down

  3. remained constant

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

During the period from 1999-2000 to 2004-05, India experienced a phase where the unemployment rate increased, often attributed to jobless growth in certain sectors.

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

In disguised unemployment _______.

  1. productivity is nil or positive

  2. productivity is always positive

  3. productivity is always negative

  4. productivity is nil or Negative.
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

In disguised unemployment, the marginal productivity of the additional workers is zero or negative, meaning their removal 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

Unemployment rate is defined as number of persons unemployed per _________ persons in labour force.

  1. 100

  2. 1000

  3. 10

  4. 10000
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

The unemployment rate is standardly expressed as the number of unemployed persons per 1000 persons in the labor force in many Indian statistical contexts.

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

Unemployment in India had first _____ than _____.

  1. decreased, risen

  2. risen, decreased

  3. decreases, again decrease

  4. increased, again increased
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

An official survey that has been withheld by the government shows India's unemployment rate rose to a 45-year high during 2017-2018, the Business Standard newspaper reported on Thursday, delivering a blow to Prime Minister Narendra Modi just months before what is expected to be a closely fought general election.

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

Unemployment resulting from short term contracts terminable at any time is called _________.

  1. voluntary

  2. frictional

  3. casual

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

Casual unemployment refers to workers who are employed on a day-to-day or short-term contract basis, leading to intermittent periods of work and unemployment.

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

"People enjoy a continuous flow of income and need not work" is a characteristic of which type of unemployment?

  1. Voluntary

  2. Frictional

  3. Casual

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

Voluntary unemployment occurs when individuals are able to work but choose not to, often because they have other sources of income or are dissatisfied with prevailing wage rates.