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

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.

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.