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

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 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

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.

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

State whether the followings statements regarding NREGA are true or false:
a) Employment will be given within 15 days of application for work, if it is not then daily unemployment allowance as per the Act, has to be paid. 
b) Paid liability for payment of unemployment allowance is of the States.

  1. Only A is true

  2. Only B is true

  3. Both A and B are true

  4. Both A and B are false
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Under the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), employment must be provided within 15 days of application, failing which an unemployment allowance is payable. The responsibility for funding this allowance lies with the State Governments.

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

During the recent Depression, workers in developed countries preferred to take inferior jobs instead of a lay-off. This situation is known as _________________.

  1. Seasonal unemployement

  2. Cyclical unemployement

  3. Disguised unemployment

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

Disguised unemployment occurs when more people are employed than are actually needed for a job, often resulting in low productivity. In the context of a depression, taking inferior jobs is often a sign of underemployment or disguised unemployment.

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

State whether the following statements are True or False.
There is no disguised unemployment in India.

  1. True

  2. False
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Disguised unemployment is a significant issue in the Indian agricultural sector, where more people are working on a piece of land than is required.

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

State whether the following statements are True or False.
Backlog of unemployment is decreasing.

  1. True

  2. False
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

The backlog of unemployment in India has generally been increasing or remaining high due to population growth and the slow pace of job creation.

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

State whether the following statements are True or False.
White collared job preference is voluntary unemployment.

  1. True

  2. False
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Voluntary unemployment occurs when a person chooses not to work at the prevailing wage rate, often because they are waiting for a specific type of job, such as a white-collar role.

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

State whether the following statements are True or False.
Cyclical unemployment is the main problem in India.

  1. True

  2. False
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Structural unemployment, not cyclical, is generally considered the main problem in India, as it stems from deep-seated issues in the economy and education system.

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

State whether the following statements are True or False.
Unemployment refers to unemployed people in the age group of 15 to 60 years.

  1. True

  2. False
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Unemployment statistics typically account for individuals in the working-age group, which is conventionally defined as 15 to 60 years.

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

State whether the following statements are True or False.
Problem of unemployment of India and Japan are the same.

  1. True

  2. False
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

India and Japan have vastly different economic structures, labor markets, and demographic profiles, leading to different types of unemployment problems.

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

Among the above mentioned countries, unemployment rate is lowest in which country?

  1. Pakistan

  2. Malaysia

  3. Sri Lanka

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

Historically, among the listed countries, Malaysia has maintained a significantly lower unemployment rate compared to India, Pakistan, and Sri Lanka due to its different stage of industrialization and labor market dynamics.