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

___________ measure estimates the number of persons who may be said to be chronically unemployed.

  1. Usual status

  2. Current weekly status

  3. Current daily status

  4. Current yearly status
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Usual Status (UPS) measures employment over a long reference period (usually a year), which helps identify those who are chronically unemployed.

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

Unemployed Rate equals ______________________.

  1. number of persons in the Labour Force per 1000 persons of the Population

  2. number of persons employed per 1000 persons in the Labour-Force

  3. number of persons unemployed per 1000 persons in the Labour-Force

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

The unemployment rate is defined as the number of unemployed persons divided by the total labor force, typically expressed per 1000 persons.

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 percent

  2. 8 percent

  3. 6 percent

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

This is identical to Q492518 with the same numbers and calculation. Unemployed = 400 - 392 = 8. Rate = (8/400) × 100 = 2%. The correct answer is 2 percent.

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

___________ measures generally gives the lowest estimate of unemployment.

  1. Current weekly status

  2. Usual status

  3. Current daily status

  4. Current monthly status
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Usual Status (UPS) typically yields the lowest estimate of unemployment because it captures long-term employment status, ignoring short-term fluctuations or seasonal unemployment.

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

______ measures gives the lowest estimate of unemployment for a poor economy.

  1. Usual Status

  2. Current Weekly Status

  3. Current Daily Status

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

Usual Status (UPS) provides the lowest estimate because it focuses on the primary activity status over a year, often masking intermittent or seasonal unemployment prevalent in poor economies.

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

Labour-Force Participation Rate (LFPR) equals _______________.

  1. number of persons in the Labor Force per 1000 persons of the Population

  2. number of persons employed per 1000 persons in the Labour-Force

  3. number of persons unemployed per 1000 persons in the Labor-Force

  4. none of the above
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

The Labor Force Participation Rate (LFPR) is the ratio of the labor force to the total population, usually expressed per 1000 persons.

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

As per statistical Analysis, Unemployment Rates on CDS basis are ______ those on UPS basis.

  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

CDS (Current Daily Status) captures unemployment on a daily basis, which is more sensitive to intermittent work than UPS (Usual Principal Status), thus yielding higher rates.

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

When does the Actual Rate of Unemployment fall below the Natural rate of Unemployment?

  1. Recession.

  2. Prosperity.

  3. contraction.

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

During periods of prosperity, aggregate demand is high, leading to increased hiring and lower unemployment rates, often pushing the actual rate below 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 in India is large.

  1. Structural

  2. Open

  3. Disguised

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

Open unemployment refers to a situation where a large section of the labour force does not get a job that may yield regular income. This is a visible and significant form of unemployment in India, especially in urban areas.

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

In economics, there is full employment of labour when ________________.

  1. everyone is working 16 hours per day all year

  2. everyone who wants a job can find one within a reasonable span of time

  3. the potential output exceeds actual output of an economy

  4. unemployment is just equal to the cyclical rate of unemployment
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Full employment does not mean zero unemployment; it means that everyone who is willing and able to work at the prevailing wage rate can find employment within a reasonable timeframe. It accounts for frictional and structural unemployment.

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

If $9$ people are unemployed and $411$ people are in the work force, then people in labour force are ______________.

  1. $402$
  2. $411$
  3. $9$
  4. $420$
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

The labour force is defined as the sum of employed people and unemployed people. Given 9 unemployed and 411 employed (in the workforce), the total labour force is 9 + 411 = 420.

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

The workers got a relief from the temporary unemployment because of seasonal work ___________.

  1. increased in construction of buildings and railway networks

  2. permanent jobs were created by government

  3. stopped the use of machines and workers were inducted in work

  4. workers worked in the agricultural field throughout the year
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Unemployment is very much prevailing in India. So a lot of workers depend on seasonal work. These are works which are for a time period. Many such workers got relief from this unemployment when building and railway network construction work started.

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 people __________.

  1. who are not willing to work

  2. who are willing but do no get work

  3. who leave their jobs in search of better ones

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

Unemployment is specifically defined as a situation where individuals are actively seeking work and are willing to work at the current wage rate but are unable to find employment.