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 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.

Multiple choice social science employment: growth, informalisation and other issues employment - trends and structure workers and employment sources of income

State whether the following statements are True or False.
Joint Family system increases the unemployment problem.

  1. True

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

In many traditional contexts, the joint family system is argued to contribute to disguised unemployment, as more family members work on the same land than are actually needed.

Multiple choice social science employment: growth, informalisation and other issues employment - trends and structure workers and employment sources of income

State whether the following statements are True or False.
High growth of population is the only cause of rural unemployment.

  1. True

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

While population growth is a significant factor, rural unemployment is also caused by factors like lack of industrialization, seasonal nature of agriculture, and lack of infrastructure.

Multiple choice social science employment: growth, informalisation and other issues employment - trends and structure workers and employment sources of income

Frictional employment takes place when ______________.

  1. there are dynamic changes in the economy

  2. when there is a clash between two types of employment

  3. when there is no change in shifts in demand

  4. when there is no change in technological progress
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Frictional employment/unemployment occurs when people are changing their jobs. When individuals are seeking better job opportunities, shifting from one job to another this happens. When there are sudden boosts or downfalls in the economy this could occur. 

Multiple choice social science employment: growth, informalisation and other issues employment - trends and structure workers and employment sources of income

Disguised unemployment in the agricultural sector of India exists due to the ______.

  1. dependence of agriculture on the monsoons

  2. abolition of zamindari

  3. heavy pressure of population on land

  4. absence of trade unions in the agriculture sector
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Dependency on agriculture is increasing day by day because of lack of alternative employment opportunities and burgeoning population resulting in disguised unemployment. In fact overcrowding and consequent pressure of population on land have led to the sub-division and fragmentation of holdings decline in area of land per capita and disguised employment in agriculture.

Multiple choice social science employment: growth, informalisation and other issues employment - trends and structure workers and employment sources of income

______ is an indicator which is used for analysing the employment situation in the country.

  1. NNP

  2. Worker population ratio

  3. Number of workers

  4. None of the above
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation
Worker-population ratio is an indicator which is used for analyzing the employment situation in the country. NNP deals with national income, not employment. No. of workers is an absolute measure, which cannot be used to assess the employment situation.
Multiple choice social science employment: growth, informalisation and other issues employment - trends and structure workers and employment sources of income

Which of the following doest not determine supply of labour?

  1. Size and age-structure of population

  2. Nature of work

  3. Marginal productivity of labour

  4. Speed and Intensity of work
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

The supply of labour is determined by population size, age structure, and work preferences. Marginal productivity of labour is a factor that determines the demand for labour, not the supply.

Multiple choice social science employment: growth, informalisation and other issues employment - trends and structure workers and employment sources of income

An employment situation where the marginal productivity of agricultural labour is zero is known as ___________.

  1. structural unemployment

  2. seasonal unemployment

  3. cyclical unemployment

  4. disguised unemployment
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

A situation in which available work tasks are split among resources (typically labour) such that they seem fully employed but in reality much of their time is spent in unproductive activities is called disguised unemployment. Here the marginal productivity of labour comes to zero. When aggregate demand for goods and services in the economy falls far below its capacity, a large chunk of labour force gets employed. This is known as cyclical unemployment. While structural unemployment means the change in the demand pattern for goods necessitates change in the demand pattern for labour. But labour force cannot immediately metamorphose, matching the change in demand pattern. Due to these conditions a state of unemployment occurs that is known as structural unemployment.