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

Chronic unemployment also known as  ___________.

  1. usual principal status employment

  2. open unemployment

  3. both (A) and (B)

  4. neither (A) nor (B)
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Chronic unemployment, often referred to as open unemployment, is a situation where a person is willing and able to work but cannot find employment for a long duration, often measured by usual principal status.

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 is unwilling to work at the prevailing wage rate, it is a case of ______ unemployment.

  1. voluntary

  2. frictional

  3. casual

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

Voluntary unemployment is defined by the choice of an individual to remain unemployed because they are unwilling to work 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

A person who is not gainfully employed in any productive activity is called____.

  1. openly unemployed

  2. disguisedly unemployed

  3. particularly umemployed

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

A person who is not engaged in any productive activity and is actively looking for work is simply classified as unemployed.

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

______ means people are unwilling to work at prevailing wage rate.

  1. Voluntary Unemployment

  2. Involuntary Unemployment

  3. Chromic Unemployment

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

Voluntary unemployment occurs when individuals choose not to work at the prevailing wage rate, often because they are satisfied with their current income or lifestyle.

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

When work is suspended due to strikes on lockouts, it is a case of ______ unemployment.

  1. voluntary

  2. frictional

  3. casual

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

Frictional unemployment occurs when workers are temporarily out of work due to transitions, such as changing jobs, or temporary interruptions like strikes and lockouts.

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

When some people in a society are unwilling to work at the prevailling wage rate and these are people who have income from property or some other sources and need not work, such people are____.

  1. casually unemployed

  2. chronically unemployed

  3. voluntarily enemployed

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

When individuals have other sources of income and choose not to work at the prevailing wage, they are classified as voluntarily unemployed.

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

When some workers are temporarily out of work while changing jobs, it is a case of ______ unemployment.

  1. Voluntary

  2. frictional

  3. Casual

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

Frictional unemployment is the temporary unemployment that occurs when people are in the process of moving from one job to another.

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

For measuring Unemployment, the term "Work Force" includes _____________.

  1. employed persons

  2. unemployed persons

  3. both (a) and (b)

  4. neither (a) nor (b)
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

The work force is defined as the total number of people who are currently employed. It does not include those who are unemployed but seeking work.

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

For measuring Unemployment, the term "Labour Force" refers to____.

  1. entire population

  2. economically active population

  3. both (a) and (b)

  4. neither (a) nor (b)
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

The labor force consists of all people who are either employed or actively seeking employment. This group is referred to as the economically active population.

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

For measuring Unemployment, the term "Labour Force" includes____.

  1. employed persons

  2. unemployed persons

  3. both (a) and )b)

  4. neither (a) nor (b)
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Labour force = employed persons + unemployed persons (those actively seeking work). Option C has a typo with ')b)' but represents the correct concept. This is the standard definition.

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

______ unemployment may result when some workers are temporarily out of work while changing job.

  1. Cycllical

  2. Voluntary

  3. Frictional

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

Frictional unemployment occurs when workers are between jobs or are searching for their first job. It is a natural part of a dynamic labor market.

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 is a cause for Unemployment in India?

  1. Over-Population.

  2. Use of Capital Intensive Technology.

  3. Gaps between Education and Job Requirments.

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

High population growth, the shift toward capital-intensive production, and the mismatch between educational curricula and industry needs are all significant contributors to 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

For measuring Unemployment, "Labour Force" will be ______ "Work Force".

  1. lower than

  2. higher than

  3. equal to

  4. nothing can be said
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Since the labor force includes both the employed (work force) and the unemployed, the labor force is mathematically larger than or equal to the work force.

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

____________ unemployment refers to a situation where some workers are temporarily out of work while changing jobs.

  1. Cyclical.

  2. Voluntary.

  3. Frictional.

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

Fricitional unemployment refers to a situation where some workers are temporarily unemployed while changing jobs.

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 people are in the labour force, 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 (Number of Unemployed / Labor Force) * 100. Here, unemployed = 400 - 392 = 8. Rate = (8 / 400) * 100 = 2%.