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

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.

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 mostly _________.

  1. technical

  2. structural

  3. voluntary

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

Structural unemployment arises from a mismatch between the skills of workers and the requirements of the jobs available, which is a primary characteristic of the Indian economy due to technological changes and industrial shifts.

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

The major causes of unemployment in India can be classified as _________.

  1. under development

  2. rapid population growth

  3. defective planning

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

Unemployment in India is a multifaceted issue caused by a combination of underdevelopment, rapid population growth, and ineffective planning, making all the listed options valid contributors.

Multiple choice business economics and quantitative methods introduction to micro economics microeconomics and macroeconomics : introduction economic ideas of j k mehta micro and macro economics

A study of how an increase in the corporate income tax rate will affect the national unemployment rate is an example of:

  1. Macro economics

  2. Descriptive economics

  3. Micro economics

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

Macroeconomics deals with all the issues affecting the national economy.


For example, an increase in the direct tax such as corporate income tax will increase the cost of the corporate sector. 

Thus, in order to compensate their costs, one of the measure may be to lessen the employees which will further affect the unemployment in the economy.

Multiple choice political science people as resource introduction and features of unemployment quality of population problem of unemployment in india

Underemployment is also called ___________.

  1. Technological unemployment

  2. Disguised unemployment

  3. Seasonal unemployment

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

Disguised Unemployment is the unemployment that does not affect aggregate output. It is a situation when people are working less than they are capable of doing. It exists where part of the labour force is either left without work or is working in a redundant manner where worker productivity is essentially zero.

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

Voluntary unemployment refers to ___________.

  1. labour preferring leisure

  2. non-availability of jobs

  3. improper adjustment between demand and supply

  4. people seeking employment of their own accord
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Voluntary unemployment is a class of unemployment where the workforce refuses to work in spite of suitable work pay and benefits.

Multiple choice economics employment: growth, informalisation and other issues measures to alleviate unemployment unemployment measures unemployment and employment generation

Unemployment insurance results in _______________.

  1. Maintenance of consumption level

  2. Decrease in savings

  3. Decrease in consumption level

  4. Increase in savings
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Unemployment insurance provides a financial safety net for individuals who have lost their jobs. This allows them to maintain their standard of living and consumption levels during periods of joblessness.

Multiple choice economics employment: growth, informalisation and other issues measures to alleviate unemployment unemployment measures unemployment and employment generation

Which is the highest form of unemployment in India?

  1. Seasonal

  2. Structural

  3. Cyclical

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

Structural unemployment is considered the most significant and persistent form of unemployment in India, arising from a mismatch between the skills of the workforce and the requirements of the economy.