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

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.  

Multiple choice organization of commerce and management emerging trends in business definition, scope and benefits of e-business emerging service business in india emerging modes of services

Difference between attendance time and job time is _________.

  1. job time

  2. over time

  3. actual time

  4. idle time
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Idle time is defined as the difference between the time a worker is available for work (attendance time) and the time they are actually engaged in productive work (job time).

Multiple choice history the industrial revolution from capitalism to imperialism industrial revolution and inventions industrial revolution and its effects

______ became one of the greatest social problems.

  1. Mass unemployment

  2. Mass underemployment

  3. Mass employment

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

The most prominent social impact of the industrial revolution was mass underemployment. Underemployment is when a person lands in a job which doesn't use his actual skills. The expertise of  skilled workers like hand weavers became  obsolete owing to the extraordinary efficiency of textile  machines. This forced them to opt jobs which they were not familiar with. The challenging working conditions and undue payments worsened their living.

Multiple choice social science poverty: an economic challenge for india meaning and measurement of poverty poverty : challenge facing india poverty as a challenge

Identify the incorrect statement.

  1. The problems of poverty and unemployment are inter-related.

  2. The problem of poverty has been solved in India.

  3. Growing population has also contributed to the problem of poverty in India.

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

The incorrect statement is that "the problem of poverty has been solved in India", since the problem still exists in India.

Multiple choice economics consumption and investment functions keynesian law of consumption and propensity to consume ex ante and ex post concept of consumption function, saving function and investment function

__________ refers to a situation when AD is equal to AS beyond the full employment level.

  1. Full Employment Equilibrium

  2. Over Full Employment Equilibrium

  3. Underemployment Equilibrium

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

The over full employment equilibrium refers to the situation when the aggregate demand in the economy is equal to aggregate supply beyond the full employment level which means that the excess demand in the economy leads to high price and over utilization of resources. 

Multiple choice business economics and quantitative methods consumer's behaviour consumer equilibrium laws in economics utility and law of diminishing marginal utility

Diminishing marginal returns occurs because _____________.

  1. total output falls once too many workers are involved in the production process.

  2. as more laborers are hired, workers increasingly share use of other fixed inputs, and so their ability to be increasingly productive is limited

  3. the first laborers hired are the most qualified, but as the quantity of labor increases the firm draws from a less qualified pool of labor

  4. unemployment rates mean that qualified labour is more and more difficult to find as hiring of labour increases
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Diminishing marginal returns to labour occurs when the marginal production starts to diminish with increase in the amount of labour used in the production process. This leads to increase in total production at a diminishing rate and a situation may come when the total output is maximized and then tends to fall. 

Multiple choice business economics and quantitative methods equilibrium of a firm shifts in demand and supply producer's equilibrium income-output determination liquidity preference and profit

Deficient Demand indicates __________________.

  1. Under employment equilibrium

  2. Over Full employment equilibrium

  3. Full employment equilibrium

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

Deficient demand refers to the situation when aggregate demand is short of aggregate supply corresponding to full employment level in the economy. Aggregate supply being perfectly elastic, it converges with aggregate demand at a lower level of output lower than the full employment level of output in the economy. This is a situation of underemployment equilibrium.