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 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.

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

In India, the type of unemployment is mostly _________.

  1. disguised

  2. chronic

  3. technological

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

Structural unemployment is the most prevalent form in India, arising from a mismatch between the skills of the workforce and the requirements of the economy, often due to slow capital formation and technological gaps.

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

"Some workers are temporarily out of job" is a phenomenon of which type of unemployment.

  1. Voluntary

  2. Frictional

  3. Casual

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

Frictional unemployment occurs when workers are between jobs, searching for new employment, or transitioning into the workforce. It is a temporary state inherent in a dynamic labor market.

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 even an hour of work 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
B Correct answer
Explanation

Weekly status unemployment refers to individuals who did not find even one hour of work during the reference week. This is a standard metric used by the NSSO in India to measure unemployment.

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

Voluntary Unemployment arises when a person_____.

  1. is unwilling to work at prevailing wage rate

  2. gets a continuous flow of income from his property, and need not work

  3. both (a) and (b)

  4. neither (a) nor (b)
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Voluntary unemployment occurs when an individual chooses not to work, either because they are unwilling to accept the prevailing wage or because they have independent means of support and do not need to work.

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

Frictional Unemployment arises when____.

  1. some workers are temporarily out of work while changing job

  2. work is suspended due to strikes or lockouts

  3. both (a) and (b)

  4. neither (a) nor (b)
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Frictional unemployment is caused by the time taken to find a new job or by temporary disruptions in the workplace like strikes. Both scenarios represent a temporary break in employment.

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

If a person gets a continuous flow of income from his property or other sources, and hence need not work, it is a case of ______ unemployment.

  1. voluntary

  2. frictional

  3. casual

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

When an individual has sufficient income from assets or other sources and chooses not to work, they are considered voluntarily unemployed. They are not seeking work despite being able to.

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

______ Unemployment is caused by imperfect mobility of labour.

  1. Voluntary

  2. Frictional

  3. Casual

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

Frictional unemployment arises due to imperfect information and the lack of perfect mobility of labor, which prevents workers from immediately finding jobs that match their skills in different locations.

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

______ unemployment arises due to short-term contracts, which are terminable any time.

  1. voluntary

  2. frictional

  3. casual

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

Casual unemployment is a result of short-term or temporary contracts where employment is not guaranteed. Once the contract ends, the worker becomes unemployed until the next opportunity.