Economics ยท 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

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.

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

Frictional unemployment is a ______ phenomenon.

  1. permanent

  2. temporary

  3. long-term

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

Frictional unemployment is a temporary state that exists as long as there is a dynamic labor market where people move between jobs. It is not a permanent condition for the individual.

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

Casual unemployment is common in____.

  1. construction

  2. catering

  3. agriculture

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

Casual unemployment is prevalent in sectors like construction, catering, and agriculture, where work is often project-based, seasonal, or dependent on daily demand rather than permanent employment.

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

Frictional unemployment exists in an economy due to_____.

  1. lack of trained employees

  2. imperfect information about availability of manpower and the opportunities

  3. ceiling on production levels by manufactures

  4. decrease in demand for products
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Frictional unemployment occurs because it takes time for job seekers to find employers and for employers to find suitable candidates due to imperfect information 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

A situation of employment in which a person is apparently employed but contribution to the production is almost nil is called _________ unemployment.

  1. structural.

  2. chronic.

  3. disguised.

  4. cyclical.
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation
A situation of employment in which a person is apparently employed but contribution to the production is almost nil is called disguised unemployment. This is a case of marginal productivity of labour being zero and is generally found 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

In which type of unemployment would a shift in surplus labour from one sector to another, will lead to an increase in productivity and the national output?

  1. structural unemployment.

  2. frictional unemployment.

  3. disguised unemployment.

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

Structural unemployment involves a mismatch in the economy. Moving surplus labor from a low-productivity sector (like traditional agriculture) to a more productive sector (like industry) increases overall output.

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

Which type of unemployment arises due to changes in the regional and occupational patterns of job vacancies, which does not match the profile of a the existing workers?

  1. Disguised unemployment.

  2. Frictional unemployment.

  3. Structural unemployment.

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

Structural unemployment occurs when there is a fundamental shift in the economy, such as changes in technology or consumer demand, that makes the skills of existing workers obsolete.