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

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

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.

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

The incidence of unemployment in India is ________.

  1. quite low

  2. quite high

  3. moderately low

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

Due to structural issues, high population density, and the nature of the labor market, the incidence of unemployment in India is widely considered to be quite high.

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

Unemployment rate in India over the years has ________.

  1. increased

  2. decreased

  3. remained constant

  4. has not shown any specific trend
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Over the long term, despite economic growth, the unemployment rate in India has generally shown an increasing trend due to the rapid growth of the labor force outstripping job creation.

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

Functional employment occurs when _____________.

  1. there is a fall in aggregate demand

  2. workers are voluntarily unemployed

  3. workers are unemployed due to technology

  4. non of these
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Functional unemployment (often synonymous with technological unemployment in some contexts) occurs when workers are displaced by technological advancements that make their specific skills redundant.

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

Growth of _______ should exceed growth of ______ to reduce the backlog of unemployment.

  1. labour force, employment

  2. employment, labour force,

  3. labour force, unemployment

  4. unemployment, labour force
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

To reduce the backlog of unemployment, the rate of job creation (employment) must be higher than the rate at which new people enter the labor market (labor force).

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 was the ordering of magnitudes of employment rates according to various measures?

  1. Daily status < current weekly status < usual status rates

  2. Daily status > current weekly status > usual status rates

  3. Daily status < usual status < current weekly status

  4. Daily status > usual status > current weekly status.
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

NSSO data typically shows that daily status unemployment rates are higher than weekly status, which are in turn higher than usual status rates, because daily status captures the most intermittent unemployment.

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

According to NSSO (2004.05), unemployment rates on the basis of current daily status were ________ than those on the basis of usual status and current weekly status.

  1. much higher

  2. marginally higher

  3. much lower

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

Current daily status (CDS) is the most comprehensive measure of unemployment as it captures the variations in employment on a day-to-day basis, resulting in higher rates compared to usual or weekly status.

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

The unemployment rates have been found to be highest for _______.

  1. urban males

  2. urban females

  3. rural males

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

Statistical data from the NSSO consistently indicates that urban females face the highest rates of unemployment compared to other demographic groups in India.