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 economics economic reconstruction economics of planning objectives of economic planning in india major economic problems

A person who is not gainfully employed is called an unemployed person.

  1. True

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

A person who is not gainfully employed, that is, a person who is not paid in monetary terms or in kind in return of his work, is known as an unemployed person since he cannot contribute in the GDP of a country.

Multiple choice economics unemployment in india types of unemployment unemployment and measures to remove employment and unemployment in india - problems and policies

____________ sector has highest rate of disguised unemployment.

  1. Agriculture

  2. Service

  3. Industrial

  4. Construction
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 task, resulting in zero marginal productivity. This is most prevalent in the agricultural sector, where family members often work on the same plot of land regardless of the actual labor requirement.

Multiple choice economics unemployment in india types of unemployment unemployment and measures to remove employment and unemployment in india - problems and policies

 _________ unemployment is associated with trade cycles.

  1. Cyclical

  2. frictional

  3. technological

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

Cyclical unemployment is directly linked to the ups and downs of the business cycle. When the economy is in a recession or downturn, aggregate demand falls, leading to layoffs.

Multiple choice economics unemployment in india types of unemployment unemployment and measures to remove employment and unemployment in india - problems and policies

______ refers to the persons who are not willing to work at the existing wage rate.

  1. Voluntary unemployed

  2. Disguised unemployed

  3. Semi employed

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

Voluntary unemployment refers to a situation where individuals choose not to work at the prevailing wage rate, often because they are looking for better opportunities or are satisfied with their current situation.

Multiple choice economics unemployment in india types of unemployment unemployment and measures to remove employment and unemployment in india - problems and policies

Rural unemployment in India is mainly of the ______ type. 

  1. industrial

  2. educated

  3. seasonal and disguised

  4. all of the above
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

In rural India, the economy relies heavily on agriculture, which is inherently seasonal. Additionally, the surplus of labor on small landholdings leads to widespread disguised unemployment.

Multiple choice economics unemployment in india types of unemployment unemployment and measures to remove employment and unemployment in india - problems and policies

_________ means persons who did not find work on a day or some days during the survey week.

  1. Daily status unemployment

  2. Weekly status unemployment

  3. Chronic unemployment

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

Daily status unemployment is calculated based on the activity status of a person on each day of the reference week, capturing those who did not find work on specific days.

Multiple choice economics unemployment in india types of unemployment unemployment and measures to remove employment and unemployment in india - problems and policies

Seasonal unemployment is most common in____.

  1. agriculture

  2. mining

  3. interior decoration

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

Seasonal unemployment occurs when people are out of work during certain times of the year, which is a defining characteristic of the agricultural sector due to crop cycles.

Multiple choice economics unemployment in india types of unemployment unemployment and measures to remove employment and unemployment in india - problems and policies

Difficulties in getting workers and vacancies together leads to ______ unemployment.

  1. voluntary

  2. frictional

  3. casual

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

Frictional unemployment occurs when there is a time lag between a worker leaving one job and finding another, often due to information gaps in the labor market.

Multiple choice economics unemployment in india types of unemployment unemployment and measures to remove employment and unemployment in india - problems and policies

When marginal output of a worker is zero, it is a case of ______ unemployment.

  1. open

  2. disguised

  3. chronic

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

When the marginal product of an additional worker is zero, it means that the total output would remain the same even if that worker were removed. This is the classic definition of disguised unemployment.

Multiple choice economics unemployment in india types of unemployment unemployment and measures to remove employment and unemployment in india - problems and policies

Unemployment in which some workers are temporarily out of work while changing their job is called _____________.

  1. seasonal unemployment

  2. cyclical unemployment

  3. frictional unemployment

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

Frictional unemployment is the temporary period of unemployment that occurs when an individual is in the process of changing jobs.

Multiple choice economics unemployment in india types of unemployment unemployment and measures to remove employment and unemployment in india - problems and policies

Unemployment, where marginal product of labour is zero or negative, is called __________________.

  1. Voluntary unemployment

  2. Technological unemployment

  3. Frictional unemployment

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

Disguised unemployment is characterized by a situation where the marginal product of labor is zero or negative because there are more workers than necessary for the production process.