Labor Force Participation and Unemployment

Description: This quiz covers the concepts related to Labor Force Participation and Unemployment in Indian Economics.
Number of Questions: 15
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What is the term used to describe the percentage of the working-age population that is actively employed or seeking employment?

  1. Labor Force Participation Rate

  2. Unemployment Rate

  3. Employment Rate

  4. Labor Force Growth Rate


Correct Option: A
Explanation:

The Labor Force Participation Rate measures the proportion of the working-age population that is actively participating in the labor market.

Which of the following is not a type of unemployment?

  1. Frictional Unemployment

  2. Structural Unemployment

  3. Cyclical Unemployment

  4. Seasonal Unemployment


Correct Option: C
Explanation:

Cyclical Unemployment is not a type of unemployment. It is a term used to describe the fluctuations in unemployment that occur over the course of the business cycle.

What is the term used to describe the situation where workers are unable to find jobs that match their skills and qualifications?

  1. Frictional Unemployment

  2. Structural Unemployment

  3. Cyclical Unemployment

  4. Seasonal Unemployment


Correct Option: B
Explanation:

Structural Unemployment occurs when there is a mismatch between the skills and qualifications of workers and the demands of the labor market.

Which of the following is not a factor that can contribute to frictional unemployment?

  1. Job search

  2. Labor market imperfections

  3. Changes in technology

  4. Economic fluctuations


Correct Option: C
Explanation:

Changes in technology are not a factor that contributes to frictional unemployment. They are a factor that can contribute to structural unemployment.

What is the term used to describe the situation where workers are temporarily unemployed due to seasonal fluctuations in demand for labor?

  1. Frictional Unemployment

  2. Structural Unemployment

  3. Cyclical Unemployment

  4. Seasonal Unemployment


Correct Option: D
Explanation:

Seasonal Unemployment occurs when there are temporary fluctuations in demand for labor due to seasonal factors.

Which of the following is not a policy that can be used to address unemployment?

  1. Fiscal policy

  2. Monetary policy

  3. Supply-side policies

  4. Demand-side policies


Correct Option: C
Explanation:

Supply-side policies are not typically used to address unemployment. They are used to increase the productive capacity of the economy.

What is the term used to describe the situation where workers are unemployed for a long period of time?

  1. Long-term Unemployment

  2. Short-term Unemployment

  3. Cyclical Unemployment

  4. Seasonal Unemployment


Correct Option: A
Explanation:

Long-term Unemployment occurs when workers are unemployed for a period of time that is longer than the average duration of unemployment.

Which of the following is not a factor that can contribute to long-term unemployment?

  1. Lack of skills and qualifications

  2. Discrimination

  3. Economic fluctuations

  4. Job search


Correct Option: D
Explanation:

Job search is not a factor that contributes to long-term unemployment. It is a factor that contributes to frictional unemployment.

What is the term used to describe the situation where workers are employed in jobs that are below their skill level or qualifications?

  1. Underemployment

  2. Unemployment

  3. Overemployment

  4. Full Employment


Correct Option: A
Explanation:

Underemployment occurs when workers are employed in jobs that are below their skill level or qualifications.

Which of the following is not a factor that can contribute to underemployment?

  1. Lack of skills and qualifications

  2. Discrimination

  3. Economic fluctuations

  4. Changes in technology


Correct Option: D
Explanation:

Changes in technology are not a factor that contributes to underemployment. They are a factor that can contribute to structural unemployment.

What is the term used to describe the situation where all those who are willing and able to work are employed?

  1. Full Employment

  2. Underemployment

  3. Unemployment

  4. Overemployment


Correct Option: A
Explanation:

Full Employment occurs when all those who are willing and able to work are employed.

Which of the following is not a benefit of full employment?

  1. Increased economic growth

  2. Reduced poverty and inequality

  3. Improved social welfare

  4. Increased unemployment


Correct Option: D
Explanation:

Increased unemployment is not a benefit of full employment. It is a cost of full employment.

What is the term used to describe the situation where there are more jobs available than workers to fill them?

  1. Overemployment

  2. Full Employment

  3. Underemployment

  4. Unemployment


Correct Option: A
Explanation:

Overemployment occurs when there are more jobs available than workers to fill them.

Which of the following is not a factor that can contribute to overemployment?

  1. Rapid economic growth

  2. Technological change

  3. Changes in labor market regulations

  4. Economic fluctuations


Correct Option: D
Explanation:

Economic fluctuations are not a factor that contributes to overemployment. They are a factor that can contribute to unemployment.

What is the term used to describe the situation where workers are employed in jobs that are above their skill level or qualifications?

  1. Overemployment

  2. Full Employment

  3. Underemployment

  4. Unemployment


Correct Option: A
Explanation:

Overemployment occurs when workers are employed in jobs that are above their skill level or qualifications.

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