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

Fill in the blanks from the alternatives given in the brackets.
Introduction of computer causes ______ unemployment.

  1. technological

  2. structural

  3. frictional

  4. None of these
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Technological unemployment occurs when advancements in technology, such as the introduction of computers, replace human labour.

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 the off season is called ______ unemployment.

  1. urban

  2. seasonal

  3. disguised

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

Seasonal unemployment occurs when people are unemployed during certain times of the year, such as in agriculture between harvest and sowing seasons.

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 due to power cut is called ______ unemployment.

  1. frictional

  2. cyclical

  3. seasonal

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

Frictional unemployment is the temporary unemployment that occurs when workers are between jobs or when production is interrupted by factors like power cuts or supply chain issues.

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.
Educated unemployment is ______ unemployment.

  1. open

  2. hidden

  3. cyclical

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

Educated unemployment is considered open unemployment because these individuals are actively looking for work and are visibly without jobs, unlike disguised unemployment.

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.
Defective education system causes _____ unemployment.

  1. educated

  2. technological

  3. frictional

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

When the education system does not align with the skills required by the market, it leads to educated unemployment.

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

Labour Force consists of ________.

  1. all people officially employed or unemployed

  2. all people over the age of 18 but less than 58 years of age

  3. all youth having passed matriculate examination

  4. all the three
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

The labour force is defined as the sum of employed and unemployed individuals who are willing and able to work.

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

For calculating an unemployment rate for any reference year generally.

  1. Open unemployment status is taken

  2. Weekly status of unemployment

  3. Daily status of unemployment

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

Open unemployment status (or Usual Principal Status) is the most common metric used for calculating the unemployment rate in India, as it measures the status of a person over a long reference period of one year.

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

Unemployed as a percentage of total labour force worked out to ________  for the country as a whole.

  1. 10.4 per cent

  2. 20.4 per cent

  3. 30.4 per cent

  4. 40.4 per cent
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

This specific figure (10.4 percent) refers to historical data points often cited in older textbooks regarding unemployment rates in India.

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

Work Force Participation Rate (WPR) 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 or persons unemployed per 1000 persons the Labour-Force

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

The Work Force Participation Rate (WPR) is defined as the number of persons employed per 1000 persons in the labor force (or sometimes population, but in this context, it refers to the employed proportion).

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

Find the odd one out among the following employment generation programmes:

  1. Urban self-employment programme.

  2. Urban wage-employment programme.

  3. Training of rural youth for self-employment.

  4. Integrated rural development programme.
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

The Integrated Rural Development Programme (IRDP) is a poverty alleviation program focused on asset creation, whereas the others listed are specific employment generation or training programs.

Multiple choice economics theories of employment and income measures to alleviate unemployment unemployment measures unemployment and employment generation

According to the NSSO survey during $2009-10$:

  1. Unemployment rates on the basis of current daily status were same as those on the basis of usual status.

  2. Unemployment rates on the basis of current daily status were higher than those on the basis of usual status.

  3. Unemployment rates on the basis of current daily status were lower than those on the basis of usual status.

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

The National Sample Survey Office (NSSO) uses multiple approaches to measure unemployment, including Usual Status (US) and Current Daily Status (CDS). The CDS approach captures daily underemployment and seasonal unemployment, which leads to higher recorded unemployment rates compared to the Usual Status approach.

Multiple choice economics theories of employment and income measures to alleviate unemployment unemployment measures unemployment and employment generation

_______ means persons remained unemployed for a major part of the year.

  1. Daily status unemployment

  2. Weekly status unemployment

  3. Chronic unemployment

  4. Disguised employment
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Chronic unemployment refers to a situation where individuals remain unemployed for a significant portion of the year, typically 6 months or more. Unlike seasonal or frictional unemployment, chronic unemployment indicates persistent joblessness requiring policy intervention.

Multiple choice economics theories of employment and income measures to alleviate unemployment unemployment measures unemployment and employment generation

According to National Sample Survey Organisation (NSSO) during $2009-10$:

  1. The unemployment rates for the urban area in the CDS approach is $5.5\%$.
  2. The unemployment rates for the urban area in the CDS approach is $6.6\%$.
  3. The unemployment rates for the urban area in the CDS approach is $7.7\%$.

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

According to latest National Sample Survey Organisation (NSSO) during $2009-10$ the unemployment rates for the Urban area in the CDS approach is $6.6\%$

Multiple choice

A long period when there is very little business activity and not many jobs

  1. Sadness

  2. Depression

  3. Poverty

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

In economics, a depression is a sustained, long-term downturn in economic activity, characterized by low business activity and high unemployment. While poverty is a state of having little money, it does not specifically refer to the period of economic downturn itself.