Most Important Questions on Unemployment and its Types
1. Which of the following types of unemployment is associated with developed countries?
(a) Involuntary unemployment
(b) Voluntary unemployment
(c) Structural unemployment
None of the above
Ans. B
2. What are the causes of unemployment?
(a) loss of life
(b) loss of meaning in life
(c) when one doesn’t have a job but is able to work
(d) All of the above
Ans. C
3. Which of the following types of unemployment is considered to be the most controllable through macroeconomic policy?
(a) cyclic unemployment
(b) Natural unemployment
(c) frictional unemployment
(d) structural unemployment
Ans. D
4. Unemployment is largely caused by:
(a) Slow growth of industrialization
(b) Less savings
(c) Lack of skills
(d) All of the above
Ans. D
5. “When a large section of the labour force does not get a job that may yield them regular income” which of the following types of unemployment is that?
(a) Open Unemployment
(b) Disguised Unemployment
(c) Seasonal Unemployment
(d) Cyclical Unemployment
Ans. A
6. The sum of Frictional unemployment and Structural unemployment is referred to as
(a) The natural rate of unemployment
(b) The seasonal rate of unemployment
(c) The structural rate of unemployment
(d) The open rate of unemployment
Ans. A
7. Which of the following unemployment conditions is caused due to long-term unemployment in the economy?
(a) Natural Unemployment
(b) Disguised Unemployment
(c) Voluntary Unemployment
(d) Chronic unemployment
Ans. D
8. What is Frictional unemployment?
(a) Unemployment caused by structural and technological changes in the economy
(b) Unemployment during the period of search for a new job
(c) Unemployment caused due to employment of more than required workers
(d) Unemployment caused due to seasonal conditions
Ans. B
9. The term cyclical unemployment refers to:
(a) Disguised unemployment
(b) Voluntary unemployment
(c) Seasonal unemployment
(d) Unemployment during recessionary phase of a trade cycle
Ans. D
10. In rural India, which type of unemployment is common?
(a) Educated unemployment
(b) Cyclical unemployment
(c) Disguised unemployment
(d) Voluntary unemployment
Ans. C
11. What Type of unemployment is found in the agriculture sector of India?
(a) Disguised unemployment
(b) Voluntary unemployment
(c) Seasonal unemployment
(d) All of the above
Ans. D
12. How does the government try to overcome this problem of unemployment?
(a) Opening hospitals
(b) Providing money
(c) Launching many schemes
(d) Creating corruption
Ans. C
13. Which type of Unemployment is caused by mismatch of ability and requirement?
(a) Disguised Unemployment
(b) Structural Unemployment
(c) Frictional Unemployment
(d) Open Unemployment
Ans. B
14. Non-Accelerating Inflation Rate of Unemployment (NAIRU) implies:
(a) The level of unemployment at which inflation rate remains stable
(b) The level of inflation rate at which unemployment remains stable
(c) The level of unemployment and inflation rate both remain stable
(d) The level of inflation rate changes but unemployment remains stable
Ans. A
15. Open unemployment is also known as:
(a) Weekly Status Unemployment
(b) Daily Status Unemployment
(c) Usual Principal Status Employment
(d) Seasonal Unemployment
Ans. C
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