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 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

__________ is not treated as unemployment.

  1. Disguised unemployment

  2. Involuntary unemployment

  3. Voluntary unemployment

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

Voluntary unemployment occurs when a person chooses not to work at the prevailing wage rate, whereas involuntary and disguised unemployment are forms of economic hardship where individuals are unable to find suitable work.

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

Unemployment rate in India is defined as the ratio of number of persons unemployed to total __________.

  1. population

  2. population excluding children

  3. labour force

  4. population excluding the aged
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Unemployment rate in India is defined as the ratio of number of persons unemployed to total population.

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

Out of the four types of unemployment mentioned below, which one is the most disturbing for the Indian economy?

  1. Cyclical unemployment

  2. Frictional unemployment

  3. Disguised unemployment in the rural sector

  4. Urban unemployment among the educated classes
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Cyclical unemployment occurs due to business depression.Frictional unemployment is a temporary short-term unemployment, which emerges due to a number of reasons.Disguised unemployment is another name of under employment when a person is employed but not to the maximum of his normal ability for want of an opportunity.But the most disturbing unemployment is of educated because due to this country is losing its human capital that has made by a considerable national spending.

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

The 3 sources of data on unemployment are _________.

  1. Census of India

  2. National Sample Survey Organisations Reports of Employment and Unemployment Situation

  3. Directorate General of Employment and Training Data of Registration with Employment Exchanges

  4. all of these
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation
There are three sources of data on unemployment: Reports of Census of India, National Sample Survey Organisation’s Reports of Employment and Unemployment Situation and Directorate General of Employment and Training Data of Registration with Employment Exchanges. Though they provide different estimates of unemployment, they do provide us with the attributes of the unemployed and the unemployment scenario prevailing in our country.
Multiple choice economics employment: growth, informalisation and other issues measures to alleviate unemployment unemployment measures unemployment and employment generation

Fill in the blanks from the alternatives given in the brackets.
Unemployment during recession is called ______ unemployment.

  1. cyclical

  2. frictional

  3. structural

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

Cyclical unemployment is caused by the business cycle, specifically during periods of economic recession when demand for goods and services drops.

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

Fill in the blanks from the alternatives given in the brackets.
Disguisedly unemployed labour has ______ marginal productivity. 

  1. zero

  2. one

  3. minimum

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

Disguised unemployment occurs when more people are employed than are needed for a job. Therefore, the marginal productivity of the additional labour is zero.