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

The Global Employment Trends Report 2008 published by the International Labour Organization has indicated that there may be increase in global unemployment. What according to them is/are the major reasons of this possibility?

  1. Turmoil in Credit Markets all over the world.
  2. Rise in oil prices in international market.
  3. Civil unrest in some under and undeveloped nations.

  1. Only 1

  2. Only 2

  3. Only 3

  4. Only 1 and 2

  5. None of these
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

The 2008 ILO report attributed global unemployment concerns primarily to credit market turmoil and rising oil prices, rather than civil unrest in underdeveloped nations.

Multiple choice

People say that youth tend to fly to other countries for jobs due to unemployment. Better salaries, perks and exposure to challenges motivate them to move out of the country and serve companies overseas. But the shoe is really on the other foot. Brain drain itself is the main reason for lack of jobs in the country.

Which of the following factors would support the author’s contention?

  1. Companies hesitate to invest in new ventures because of the perceived propensity of youth to go abroad.

  2. Existing job distribution system doesn’t promote quality employment.

  3. The high profile jobs in the country go not to the deserving, but to the favored.

  4. With the exit of highly skilled manpower, high skill outsourcing jobs cannot be sourced to the country.

  5. The global meltdown has caused scarcity of investments and of job-creation both at home and abroad.
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

(3) Brain drain can be the cause of unemployment only if it comes in the way of creation of jobs or scarcity of skilled manpower. Only (3) hints at this.

Multiple choice

Directions: Read the following passage/information and answer the question that follows. In 1975, 35 percent of state W's work force was employed in manufacturing jobs. That percentage dropped in each following year until in 1982 it reached 25 percent.

If the statements above are true, all of the following statements about changes in W's work force between 1975 and 1982 could also be true except that

  1. the number of people in the work force increased, while the number of people employed in manufacturing jobs decreased

  2. the number of people in the work force decreased, while the number of people employed in manufacturing jobs increased

  3. both the number of people in the work force and the number of people employed in manufacturing jobs decreased

  4. the number of people in the work force remained constant, while the number of people employed in manufacturing jobs decreased

  5. both the number of people in the work force and the number of people employed in manufacturing jobs increased, but in different proportions
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

This is the answer as this directly contradicts the statements. How can the number of those employed in the manufacturing sector increase, when both the total workforce and the percentage of those in the manufacturing sector decreased?

Multiple choice

Directions: In the following question, five statements are provided. These statements form a coherent paragraph when properly arranged. Select the alternative representing the proper and logical sequencing of these statements.

A. From the point of view of personal disorganisation, the unemployed person faces disillusionment and falls easy prey to cynicism. B. Unemployment affects an individual, family, as well as society, or it may be said that unemployment causes personal disorganisation, family disorganisation and social disorganisation. C. Most of the criminals are undoubtedly recruited from boys with a history of earlier delinquencies, but there has been an increase in the number of daring criminals with the decrease in work opportunities. D. These anti–social activities offer a chance to the undisciplined and recalcitrant youth to extract a living. E. Having no outlet to release their depression, young persons tune their creative energies into wrong channels which explains the rise of the number of youthful bandits, highway robberies and bank hold-ups.

  1. ECDAB

  2. ABCDE

  3. ACDEB

  4. BAEDC

  5. ABEDC
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

As statement B highlights the main idea of unemployment, it begins the sequence. “Personal disorganisation” in statement A is one of the causes reflected in statement B. Hence, we have BA link. “These anti-social activities” in statement D refers to “bandits, robberies, bank hold-ups” in statement E. Thus, we have BAED link. 

Multiple choice

Identify the correct statements (s)

  1. Involuntary employment and unemployment are one and the same.

  2. Disguised unemployed do not work to the full capacity.

  3. RWP, MFAL, SFDA are irrigation schemes.

  4. All of the above

  5. Only (1) & (2)
Reveal answer Fill a bubble to check yourself
E Correct answer
Multiple choice

Underemployment occurs when people

  1. do not want to work

  2. work in a lazy manner

  3. are working less than what they are capable of doing

  4. are not paid for their work

  5. none of these
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Underemployment occurs when people are working less than what they are capable of doing. The full capacity and skills of people are not utilised properly.

Multiple choice

Read the passage given below carefully and answer the following questions.

Why is it important to teach vocational subjects in school and college? It is difficult for an idle man to find food for him. In order to run his livelihood, he must do some work. Some occupation is necessary which enables man to satisfy his needs. Everywhere in this world there is a constant struggle for an occupation. Only deserving people win the struggle and get occupations. Those who are defeated suffer starvation and misery. In our country many persons are unemployed. Their number is very large. Unemployment problem is a great problem in our country. Lack of skill and ability is another cause of unemployment. An unskilled labor cannot be successful in any work. Our system of education is also responsible for the problem of unemployment in our country. Vocational subjects are not compulsorily taught in school and college. Students are reading some superficial subjects and are trying to get through with high marks. Their attention is on securing marks, not on the effectiveness of the subject in their practical life.

  1. It helps to get a job

  2. It helps to earn money.

  3. It helps students to get practical knowledge and secure a job.

  4. It provides us job.

  5. Dummy
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

It is given in the passage.

Multiple choice

Read the passage given below carefully and answer the following questions.

What are the reasons of unemployment? It is difficult for an idle man to find food for him. In order to run his livelihood, he must do some work. Some occupation is necessary which enables man to satisfy his needs. Everywhere in this world there is a constant struggle for an occupation. Only deserving people win the struggle and get occupations. Those who are defeated suffer starvation and misery. In our country many persons are unemployed. Their number is very large. Unemployment problem is a great problem in our country. Lack of skill and ability is another cause of unemployment. An unskilled labor cannot be successful in any work. Our system of education is also responsible for the problem of unemployment in our country. Vocational subjects are not compulsorily taught in school and college. Students are reading some superficial subjects and are trying to get through with high marks. Their attention is on securing marks, not on the effectiveness of the subject in their practical life.

  1. Lack of schooling

  2. Lack of skill

  3. Lack of skill and ability

  4. Lack of resources

  5. dummy
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Concept based

Multiple choice

Read the passage given below carefully and answer the following questions.

Who cannot run his livelihood?

It is difficult for an idle man to find food for him. In order to run his livelihood, he must do some work. Some occupation is necessary which enables man to satisfy his needs. Everywhere in this world there is a constant struggle for an occupation. Only deserving people win the struggle and get occupations. Those who are defeated suffer starvation and misery. In our country many persons are unemployed. Their number is very large. Unemployment problem is a great problem in our country. Lack of skill and ability is another cause of unemployment. An unskilled labor cannot be successful in any work. Our system of education is also responsible for the problem of unemployment in our country. Vocational subjects are not compulsorily taught in school and college. Students are reading some superficial subjects and are trying to get through with high marks. Their attention is on securing marks, not on the effectiveness of the subject in their practical life.

  1. No one

  2. An idle

  3. A free man

  4. A busy man

  5. Dummy
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

It is given in the passage.

Multiple choice

Read the passage given below carefully and answer the following questions.

How does an occupation help a person? It is difficult for an idle man to find food for him. In order to run his livelihood, he must do some work. Some occupation is necessary which enables man to satisfy his needs. Everywhere in this world there is a constant struggle for an occupation. Only deserving people win the struggle and get occupations. Those who are defeated suffer starvation and misery. In our country many persons are unemployed. Their number is very large. Unemployment problem is a great problem in our country. Lack of skill and ability is another cause of unemployment. An unskilled labor cannot be successful in any work. Our system of education is also responsible for the problem of unemployment in our country. Vocational subjects are not compulsorily taught in school and college. Students are reading some superficial subjects and are trying to get through with high marks. Their attention is on securing marks, not on the effectiveness of the subject in their practical life.

  1. It helps him to live in the society.

  2. It helps him to help others.

  3. It helps him to fulfill his needs.

  4. It does not help him.

  5. dummy
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Concept based

Multiple choice political science india’s international relations india's relations with other countries india and her neighbours india and other countries

Globalisation has reduced overall unemployment.

  1. True

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

With the Globalization of trade and economy, business flourished internationally and markets started to interacting globally. The setting up of Companies created employment opportunities in the industrial sector and non-agricultural sector.

Multiple choice business mathematics and statistics moving averages introduction to time series introduction to time series and forecasting time series and forecasting uses of average in day-to-day life

Depression in business is:

  1. Secular trend

  2. Cyclical

  3. Seasonal

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

$\Rightarrow$  Depression in business is : $Cyclical $.

$\Rightarrow$  Depression phase - The depression or trough is the bottom of a cycle where economic activity remains at a highly low level. Income, employment, output, price level, etc. go down. 
$\Rightarrow$  A depression is generally characterized by high unemployment of labor and capital and a low level of consumer demand in relation to the economy’s capacity to produce. 
$\Rightarrow$  This deficiency in demand forces firms to cut back production and lay-off workers.

Multiple choice book keeping and accountancy adjustments in preparation of financial statements outstanding and prepaid expenses outstanding expenses need for adjustment, closing stock and outstanding expenses

Unemployment due to mechanization of agriculture is ___________.

  1. Seasonal

  2. Structural

  3. Industrial

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

Structural unemployment occurs when there is a mismatch between the skills workers have and the skills needed for available jobs, often caused by technological changes like mechanization in agriculture.

Multiple choice history educational development in india educational development of independent india quality of population human capital formation in india

State whether the following statements are True or False.
Defective education system is an important cause of urban unemployment.

  1. True

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

True. Defective education system is an important cause of urban unemployment. Lack of education takes away a lot of forthcoming opportunities.