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

The phenomenon of structural unemployment is _________.

  1. temporary

  2. chronic

  3. seasonal

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

Structural unemployment is a form of unemployment caused by a mismatch between the skills that workers in the economy can offer, and the skills demanded of workers by employers (also known as the skills gap). Since  it requires either migration or re-training, structural unemployment can be chronic or long-term and slow to fix.

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 associated with the________.

  1. private sector industry

  2. Public sector industry

  3. agriculture sector

  4. transport sector
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Seasonal unemployment is tied to the agricultural sector because farming activities are dependent on specific weather conditions and crop cycles throughout the year.

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

Disguised unemployment generally exists in __________.

  1. manufacturing sector

  2. agriculture

  3. small scale industries

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

The term was first coined in $1934$ by Prof Joan Robinson. Disguised unemployment refers to the employment of a person whose marginal productivity is zero, i.e, he does not contribute anything in the production process. If disguised unemployed people are withdrawn from a particular sector and transferred to other sector, the productivity of the sector will remain unaffected. Such a condition exists in majorly in the agricultural sector.

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

Disguised unemployment refers to the situation when _____________.

  1. people seems occupied on a full time basis even though the services they render require less than full time

  2. workers are underpaid despite doing full time job

  3. there is a co-existence of unemployment and inflation

  4. the economy experiences under employment equilibrium
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Disguised unemployment refers to the employment of a person whose marginal productivity is zero, i.e, he does not contribute anything in the production process. If disguised unemployed people are withdrawn from a particular sector and transferred to other sector, the productivity of the sector will remain unaffected.

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

When a person is unemployed for a few months in the year owing to seasonal nature of the activity, it is called _____.

  1. disguised unemployment

  2. open unemployment

  3. seasonal Unemployment

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

In seasonal unemployment, a person is unemployed for a short period. Or, we can say that a person gets employed for a short time. Both statements are correct. For example, hot coffee drinks seller is only employed during the winter season. 

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

The type of unemployment where a person only appears to be working but adds no additional output to the activity is _______.

  1. open unemployment

  2. seasonal unemployment

  3. disguised unemployment

  4. none of the above
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation
Disguised unemployment is a sort of unemployment in which people are visibly employed but are in fact unemployed. In simple words, here worker's productivity is zero. 
So, his absence or presence doesn't effects the overall output. 
Multiple choice economics unemployment in india types of unemployment unemployment and measures to remove employment and unemployment in india - problems and policies

The type of unemployment that includes those persons who are unemployed for an intervening period of change over in job for better job is known as _______.

  1. seasonal unemployment

  2. voluntary unemployment

  3. frictional unemployment

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

Frictional unemployment occurs when individuals are between jobs, often because they are seeking better employment opportunities or have left their previous role.

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

Unemployment due to a mismatch between skill possessed and present available jobs is known as _________.

  1. cyclical unemployment

  2. structural unemployment

  3. frictional unemployment

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

Structural unemployment arises when there is a fundamental mismatch between the skills workers possess and the skills required by employers in the current job market.

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

In an agricultural family all the family members are working the farmland of the family. Due to addition of two more person in the family they are also working in the farmland of the family with no additional increase in farm output. This type of unemployment is known as _________.

  1. cyclical unemployment

  2. disguised unemployment

  3. frictional unemployment

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

When additional workers are added to a farm but the total output does not increase, those workers are effectively redundant, which is the 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 caused due to cyclical changes in the economy are called __________.

  1. cyclical unemployment

  2. seasonable unemployment

  3. disguised unemployment

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

Cyclical unemployment is caused by fluctuations in the business cycle, such as recessions or economic downturns, which reduce the demand for labor.

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

Unemployment caused by trade cycles is known as_____.

  1. cyclical unemployment

  2. seasonal unemployment

  3. long term unemployment

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

Trade cycles, also known as business cycles, cause cyclical unemployment when the economy experiences periods of contraction.

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

Retrenchment of staff due to introduction of ATMs in Banks is referred to ________ unemployment.

  1. cyclical

  2. frictional

  3. technological

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

Technological unemployment occurs when advancements in technology, such as the introduction of ATMs, replace the need for human labor in specific roles.

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

During general downturn of business activities we find _______.

  1. seasonal unemployment

  2. cyclical unemployment

  3. frictional unemployment

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

A general downturn in business activities leads to a decrease in aggregate demand, which results in cyclical unemployment.

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

In _________ unemployment, productivity of labour is nil or negative.

  1. disguised

  2. chronic

  3. technological

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

Disguised unemployment occurs when more people are employed than are actually needed for a task. Because the marginal productivity of these extra workers is zero or negative, their removal would not decrease total output.