MCQs on Employment: Growth, Informalisation and Other Issues

Employment is an important topic in the context of Indian economics. It highlights the capacity of our primary, secondary and tertiary industries to generate newer jobs for the population and also focuses on the bottlenecks that are holding us back. Studying more about the employment situation will also help to find out new ways of generating more jobs and improving the economic conditions of this country.

We have collated a list of multiple-choice questions on employment: growth, informalisation and other issues to help students get in-depth knowledge related to the topic.

  1. Which of the following is an accurate definition of a self-employed person?
    1. A self-employed person receives a salary from their employer on a regular basis
    2. A self-employed person owns as well as operate a business
    3. A self-employed person is employed only for a few months in a year
    4. All of the above
  2. Answer: b

  3. Which of the following measures can help to reduce unemployment in a country within a very short period of time?
    1. Increasing the investment in both public and private sector
    2. Reducing the growth rate of a country’s population
    3. Reducing the inequalities in terms of distribution of wealth and income
    4. None of the above
  4. Answer: a

  5. Which of the following is the actual definition of a workforce?
    1. The workforce is defined as the labour force that is employed by another individual or organisation
    2. The workforce is defined as the total population that is not employed by another individual or organisation
    3. The workforce is defined as the total population that is forced to work by another individual or organisation
    4. None of the above
  6. Answer: a

  7. Which of the following is a major form of livelihood for Indians as it accounts for greater than 50 per cent of the total workforce?
    1. Regular salaried employment
    2. Casual wage labour
    3. Self-employment
    4. None of the above
  8. Answer: c

  9. Which of the following statements is not true for a worker?
    1. Any person who is self-employed is not a worker
    2. Any worker has the right to temporarily abstain from their work due to any illness
    3. Any person who is helping the main worker is also called a worker
    4. A worker also contributes to the gross domestic product (GDP) of a country
  10. Answer: a

  11. Which of the following workers is a regular salaried employee?
    1. A vegetable vendor
    2. A cashier in a bank
    3. Both a and b are incorrect
    4. Both a and b are correct
  12. Answer: b

  13. Which of the following statements is true about disguised unemployment?
    1. The majority of disguised unemployed in India are found in the agriculture sector
    2. The majority of disguised unemployed in India are found in the trade sector
    3. The majority of disguised unemployed in India are found in the transport sector
    4. The majority of disguised unemployed in India are found in the manufacturing sector
  14. Answer: a

  15. Which of the following statements is true about the primary sector?
    1. Mining and quarrying is a primary sector activity
    2. Trade is a primary sector activity
    3. Transport is a primary sector activity
    4. Construction is a primary sector activity
  16. Answer: a

  17. Which of the following statements is true about unemployment in rural India?
    1. Structural unemployment is a common form of unemployment in rural India
    2. Disguised unemployment is a common form of unemployment in rural India
    3. Educated unemployment is a common form of unemployment in rural India
    4. None of the above
  18. Answer: b

  19. Which of the following statements is true about unemployment in urban India?
    1. Seasonal unemployment is a common form of unemployment in urban India
    2. Disguised unemployment is a common form of unemployment in urban India
    3. Open unemployment is a common form of unemployment in urban India
    4. None of the above
  20. Answer: c

  21. Which of the following statements is true about unemployment in India?
    1. Voluntary unemployment is the most common form of unemployment in India
    2. Frictional unemployment is the most common form of unemployment in India
    3. Structural unemployment is the most common form of unemployment in India
    4. Technical unemployment is the most common form of unemployment in India
  22. Answer: c

  23. Which of the following agencies can provide the data for unemployment in India?
    1. Reports from the census of India
    2. The Directorate General of Employment
    3. National Sample Survey Organisation (NSSO)
    4. All of the above
  24. Answer: d

  25. Which of the following statements is true about unemployment?
    1. Seasonal unemployment occurs when there are more people working in a job than is actually required
    2. Open unemployment occurs when there are more people working in a job than is actually required
    3. Disguised unemployment occurs when there are more people working in a job than is actually required
    4. Educated unemployment occurs when there are more people working in a job than is actually required
  26. Answer: c

  27. Which of the following statements is true?
    1. An establishment that has four hired workers is known as an informal sector establishment
    2. An establishment that has four hired workers is known as a formal sector establishment
    3. Both a and b are correct
    4. Both a and b are incorrect
  28. Answer: a

  29. Which of the following statements is true?
    1. Seasonal unemployment occurs when some workers lose their jobs due to the introduction of new machinery
    2. Technological unemployment occurs when some workers lose their jobs due to the introduction of new machinery
    3. Mechanical unemployment occurs when some workers lose their jobs due to the introduction of new machinery
    4. Structural unemployment occurs when some workers lose their jobs due to the introduction of new machinery
  30. Answer: b

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