Economics (Part – III)

Total Questions: 50

1. What type of unemployment is generally found in agricultural sector of India? [S.S.C. Online CHSL (T-I) 19.03.2020 (Shift-III)]

Correct Answer: (c) Disguised unemployment
Solution:In India, a large amount of disguised unemployment is generally found in the agricultural sector, which is one of the main reasons for poverty among farmers.

2. The type of unemployment in the agricultural sector of India where more people are employed than required is known as: [S.S.C. Online Constable GD 14.02.2019 (Shift-III)]

Correct Answer: (c) Disguised unemployment
Solution:In India, a large amount of disguised unemployment is generally found in the agricultural sector, which is one of the main reasons for poverty among farmers.

3. Which type of unemployment is mostly found in urban areas? [S.S.C. Online MTS (T-I) 07.07.2022 (Shift-III)]

Correct Answer: (a) Educated unemployment
Solution:The correct answer is Educated unemployment. This type of unemployment refers to the situation in which individuals who have acquired an education or skill set are unable to find employment that is commensu-rate with their qualifications. In other words, educat-ed unemployment occurs when there is a mismatch between the skills possessed by job seekers and the skills demanded by employers.

Open unemployment refers to the situation in which people are willing and able to work but are unable to find jobs.

Seasonal unemployment are more commonly asso-ciated with rural areas, where employment opportu-nities may be tied to seasonal fluctuations in agriculture or other industries.

Cyclical unemployment refers to the unemployment which is caused by the changes in business cycles, that is economic upturn or downturn.

4. What type of unemployment is commonly seen in urban areas? [S.S.C. Online MTS (T-I)16.09.2017 (Shift-III)]

Correct Answer: (a) educated unemployment
Solution:The correct answer is Educated unemployment. This type of unemployment refers to the situation in which individuals who have acquired an education or skill set are unable to find employment that is commensu-rate with their qualifications. In other words, educat-ed unemployment occurs when there is a mismatch between the skills possessed by job seekers and the skills demanded by employers.

Open unemployment refers to the situation in which people are willing and able to work but are unable to find jobs.

Seasonal unemployment are more commonly asso-ciated with rural areas, where employment opportu-nities may be tied to seasonal fluctuations in agriculture or other industries.

Cyclical unemployment refers to the unemployment which is caused by the changes in business cycles, that is economic upturn or downturn.

5. Disguised unemployment is also called? [S.S.C. Online C.G.L. (T-I) 9.08.2017 (Shift-II)]

Correct Answer: (a) underemployment
Solution:Disguised unemployment is the state of unemployment in which people are superficially employed but are actually unemployed or underemployed, called hidden unemployment. Substantial disguised unemployment is found in the agriculture sector in India.

6. _________ unemployment happens when people are not able to find jobs during some months of the year. [S.S.C. Online MTS (T-I) 21.09.2017 (Shift-II)]

Correct Answer: (a) seasonal
Solution:Seasonal unemployment occurs when people cannot find employment in certain months of the year. This type of unemployment is found in the agricultural sector. People engaged in agriculture get employment when ploughing, sowing, harvesting, etc., but as soon as these works are completed, people engaged in agriculture become unemployed. Whereas in disguised unemployment the productivity of some people is zero i.e. even if these people are removed from that work, there is no production. There won't be a difference.

7. Unemployment resulting from industrial reorga-nization, typically due to technological change, rather than fluctuations in supply or demand is called________. [S.S.C. Online CHSL (T-I) 22.01.2017 (Shift-II)]

Correct Answer: (a) Structural unemployment
Solution:Structural unemployment is unemployment resulting from changes in the production process or technological changes or industrial reorganization. Structural unemployment is long-term. Unemployment in India is structural, whereas unemployment arising due to changes in market conditions is called frictional unemployment.

8. Unemployment that arises when there is a gen-eral downturn in business activity is known as_______. [SS.C. Online CHSL (T-I) 15.01.2017 (Shift-II)]

Correct Answer: (c) Cyclical unemployment
Solution:Unemployment that arises when there is a general downturn in business activity is known as cyclical unemployment. If an economy is doing good, cyclical unemployment will be at its lowest, and will be the highest if the economic growth starts to falter.

9. The unemployment created at certain times of the year, when the demand for goods and ser-vices are lower than normal, is_________. [SS.C. Online CHSL (T-I) 21.01.2017 (shift-I)]

Correct Answer: (a) Cyclical unemployment
Solution:

Cyclical unemployment appears when demand for goods and services is lower than normal at certain times of the year. This unemployment is commonly found in industries like agriculture, tourism, hotel, food management etc.

10. _________ is the unemployment which exists in any economy due to people being in the process of moving from one job to another. [S.S.C. Online CHSL (T-I) 20.01.2017(Shift-II)]

Correct Answer: (c) Frictional Unemployment
Solution:Frictional unemployment is the unemployment which exists in any economy due to people being in the process of moving from one job to another. Workers choosing to leave their jobs in search of new ones and workers entering the workforce for the first time constitute frictional unemployment.