Unemployment and Underemployment

Description: This quiz covers the concepts of unemployment and underemployment in the Indian economy.
Number of Questions: 14
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Tags: indian economics economic demography unemployment underemployment
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What is the official definition of unemployment in India?

  1. A person who is not working but is actively seeking work.

  2. A person who is not working and is not actively seeking work.

  3. A person who is working but is earning less than the minimum wage.

  4. A person who is working but is not satisfied with their job.


Correct Option: A
Explanation:

According to the Indian Labour Force Survey, unemployment is defined as the percentage of the labour force that is not working but is actively seeking work.

Which of the following is not a type of unemployment?

  1. Frictional unemployment

  2. Structural unemployment

  3. Cyclical unemployment

  4. Seasonal unemployment


Correct Option: D
Explanation:

Seasonal unemployment is a type of underemployment, not unemployment.

What is the difference between unemployment and underemployment?

  1. Unemployment is when a person is not working, while underemployment is when a person is working but is not earning enough money.

  2. Unemployment is when a person is not working, while underemployment is when a person is working but is not using their skills and education.

  3. Unemployment is when a person is not working, while underemployment is when a person is working but is not satisfied with their job.

  4. Unemployment is when a person is not working, while underemployment is when a person is working but is not earning enough money to support their family.


Correct Option: A
Explanation:

Unemployment is the state of being without a job, while underemployment is the state of being employed in a job that does not pay enough to support a decent standard of living.

Which of the following is not a cause of unemployment?

  1. Economic recession

  2. Technological change

  3. Government policies

  4. Natural disasters


Correct Option: D
Explanation:

Natural disasters are not a cause of unemployment, but they can lead to job losses.

Which of the following is not a consequence of unemployment?

  1. Loss of income

  2. Increased poverty

  3. Social unrest

  4. Improved health


Correct Option: D
Explanation:

Unemployment can lead to a number of negative consequences, including loss of income, increased poverty, and social unrest. However, it is not associated with improved health.

What is the current unemployment rate in India?

  1. 4.5%

  2. 6.1%

  3. 7.8%

  4. 9.3%


Correct Option: B
Explanation:

As of 2023, the unemployment rate in India is estimated to be around 6.1%.

Which state in India has the highest unemployment rate?

  1. Uttar Pradesh

  2. Bihar

  3. Rajasthan

  4. Haryana


Correct Option: B
Explanation:

Bihar has the highest unemployment rate among all states in India.

Which sector in India has the highest unemployment rate?

  1. Agriculture

  2. Manufacturing

  3. Services

  4. Construction


Correct Option: A
Explanation:

Agriculture has the highest unemployment rate among all sectors in India.

What is the difference between open unemployment and disguised unemployment?

  1. Open unemployment is when a person is not working and is actively seeking work, while disguised unemployment is when a person is working but is not earning enough money.

  2. Open unemployment is when a person is not working and is not actively seeking work, while disguised unemployment is when a person is working but is not using their skills and education.

  3. Open unemployment is when a person is not working, while disguised unemployment is when a person is working but is not satisfied with their job.

  4. Open unemployment is when a person is not working, while disguised unemployment is when a person is working but is not earning enough money to support their family.


Correct Option: A
Explanation:

Open unemployment is the state of being without a job and actively seeking work, while disguised unemployment is the state of being employed in a job that does not pay enough to support a decent standard of living.

What is the difference between cyclical unemployment and structural unemployment?

  1. Cyclical unemployment is caused by economic downturns, while structural unemployment is caused by changes in technology and the economy.

  2. Cyclical unemployment is caused by government policies, while structural unemployment is caused by changes in technology and the economy.

  3. Cyclical unemployment is caused by natural disasters, while structural unemployment is caused by changes in technology and the economy.

  4. Cyclical unemployment is caused by changes in technology and the economy, while structural unemployment is caused by government policies.


Correct Option: A
Explanation:

Cyclical unemployment is caused by fluctuations in the business cycle, while structural unemployment is caused by long-term changes in the economy, such as technological change or globalization.

What is the difference between frictional unemployment and seasonal unemployment?

  1. Frictional unemployment is caused by people changing jobs, while seasonal unemployment is caused by changes in the weather.

  2. Frictional unemployment is caused by people entering the labor force for the first time, while seasonal unemployment is caused by changes in the weather.

  3. Frictional unemployment is caused by people leaving the labor force, while seasonal unemployment is caused by changes in the weather.

  4. Frictional unemployment is caused by people losing their jobs, while seasonal unemployment is caused by changes in the weather.


Correct Option: A
Explanation:

Frictional unemployment is caused by the time it takes for people to find new jobs after losing their old ones, while seasonal unemployment is caused by changes in the demand for labor due to changes in the weather.

What is the difference between voluntary unemployment and involuntary unemployment?

  1. Voluntary unemployment is when a person chooses not to work, while involuntary unemployment is when a person is unable to find work.

  2. Voluntary unemployment is when a person is fired from their job, while involuntary unemployment is when a person quits their job.

  3. Voluntary unemployment is when a person retires from work, while involuntary unemployment is when a person is laid off from their job.

  4. Voluntary unemployment is when a person takes a break from work, while involuntary unemployment is when a person is forced to work.


Correct Option: A
Explanation:

Voluntary unemployment is the state of being unemployed by choice, while involuntary unemployment is the state of being unemployed because one is unable to find work.

What is the difference between full employment and underemployment?

  1. Full employment is when everyone who wants a job has one, while underemployment is when people are working but are not earning enough money.

  2. Full employment is when everyone who is able to work has a job, while underemployment is when people are working but are not using their skills and education.

  3. Full employment is when everyone who is willing to work has a job, while underemployment is when people are working but are not satisfied with their job.

  4. Full employment is when everyone who is looking for a job has one, while underemployment is when people are working but are not earning enough money to support their family.


Correct Option: A
Explanation:

Full employment is the state of being in which everyone who wants a job has one, while underemployment is the state of being employed in a job that does not pay enough to support a decent standard of living.

What is the difference between unemployment and labor force participation rate?

  1. Unemployment is the percentage of the labor force that is not working, while labor force participation rate is the percentage of the population that is working or looking for work.

  2. Unemployment is the percentage of the population that is not working, while labor force participation rate is the percentage of the labor force that is working.

  3. Unemployment is the percentage of the population that is looking for work, while labor force participation rate is the percentage of the labor force that is working or looking for work.

  4. Unemployment is the percentage of the labor force that is not working or looking for work, while labor force participation rate is the percentage of the population that is working or looking for work.


Correct Option: A
Explanation:

Unemployment is the percentage of the labor force that is not working, while labor force participation rate is the percentage of the population that is working or looking for work.

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