MCQ on Unemployment and Employment

Q1. Which of the following is a primary cause of unemployment in India?
a) Rapid population growth
b) Technological advancements
c) High inflation rate
d) Low foreign direct investment

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Correct Answer: a) Rapid population growth
Explanation: Rapid population growth is a primary cause of unemployment in India. The country’s population has been growing at a fast pace, leading to an increase in the number of job seekers. However, the economy has not been able to generate enough employment opportunities to absorb the growing workforce, resulting in unemployment.

Q2. Which of the following types of unemployment is most commonly found in the agricultural sector in India?
a) Frictional unemployment
b) Structural unemployment
c) Cyclical unemployment
d) Disguised unemployment

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Correct Answer: d) Disguised unemployment
Explanation: Disguised unemployment is most commonly found in the agricultural sector in India. It refers to a situation where more people are employed in a sector than are actually needed, resulting in low productivity and underemployment.

Q3. Which of the following government schemes aims to provide guaranteed employment to rural households in India?
a) Pradhan Mantri Jan Dhan Yojana (PMJDY)
b) Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA)
c) Pradhan Mantri Awas Yojana (PMAY)
d) National Skill Development Mission (NSDM)

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Correct Answer: b) Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA)
Explanation: The Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) aims to provide guaranteed employment to rural households in India. The program offers at least 100 days of wage employment per year to every rural household willing to do unskilled manual work.

Q4. Which of the following is a major challenge faced by the Indian economy in terms of employment generation?
a) Low investment in infrastructure
b) High skill development
c) Low labor force participation rate
d) High population growth

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Correct Answer: d) High population growth
Explanation: High population growth is a major challenge faced by the Indian economy in terms of employment generation. The rapid growth of the population has led to an increase in the number of job seekers, but the economy has not been able to generate enough employment opportunities to absorb the growing workforce.

Q5. Which of the following sectors is the largest employer in India?
a) Agriculture
b) Industry
c) Services
d) Construction

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Correct Answer: a) Agriculture
Explanation: The agriculture sector is the largest employer in India, providing livelihood to a significant portion of the population. Despite its declining share in the GDP, agriculture remains a critical sector for food security and rural development.

Q6. Which of the following is a measure of unemployment in India?
a) Unemployment rate
b) Labor force participation rate
c) Employment-population ratio
d) All of the above

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Correct Answer: d) All of the above
Explanation: Unemployment rate, labor force participation rate, and employment-population ratio are all measures of unemployment in India. These indicators provide insights into the labor market conditions and the overall employment situation in the country.

Q7. Which of the following is a major government initiative aimed at promoting skill development and employment in India?
a) Pradhan Mantri Kaushal Vikas Yojana (PMKVY)
b) Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA)
c) Pradhan Mantri Awas Yojana (PMAY)
d) National Skill Development Mission (NSDM)

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Correct Answer: a) Pradhan Mantri Kaushal Vikas Yojana (PMKVY)
Explanation: The Pradhan Mantri Kaushal Vikas Yojana (PMKVY) is a major government initiative aimed at promoting skill development and employment in India. The program provides skill training to the youth, enhances their employability, and promotes entrepreneurship.

Q8. Which of the following types of unemployment is most commonly found in urban areas in India?
a) Frictional unemployment
b) Structural unemployment
c) Cyclical unemployment
d) Disguised unemployment

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Correct Answer: b) Structural unemployment
Explanation: Structural unemployment is most commonly found in urban areas in India. It occurs when there is a mismatch between the skills of the available workers and the skills required by the available jobs. This type of unemployment can be caused by factors such as technological advancements, changes in industry structure, and regional disparities.

Q9. Which of the following is a major challenge faced by the Indian economy in terms of skill development and employability?
a) High investment in education
b) Low investment in education
c) High labor force participation rate
d) High population growth

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Correct Answer: b) Low investment in education
Explanation: Low investment in education is a major challenge faced by the Indian economy in terms of skill development and employability. Limited access to quality education and skill development opportunities hampers the ability of the workforce to acquire the skills needed for gainful employment.

Q10. Which of the following is a major government initiative aimed at promoting self-employment and entrepreneurship in India?
a) Pradhan Mantri Mudra Yojana (PMMY)
b) Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA)
c) Pradhan Mantri Awas Yojana (PMAY)
d) National Skill Development Mission (NSDM)

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Correct Answer: a) Pradhan Mantri Mudra Yojana (PMMY)
Explanation: The Pradhan Mantri Mudra Yojana (PMMY) is a major government initiative aimed at promoting self-employment and entrepreneurship in India. The program provides financial assistance to micro and small enterprises, helping them grow and create employment opportunities.

Q11. Which of the following is a major challenge faced by the Indian economy in terms of labor force participation rate?
a) High labor force participation rate
b) Low labor force participation rate
c) High employment-population ratio
d) Low employment-population ratio

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Correct Answer: b) Low labor force participation rate
Explanation: A major challenge faced by the Indian economy in terms of labor force participation rate is the low labor force participation rate, particularly among women. Factors such as social norms, lack of access to education and skill development opportunities, and limited availability of suitable jobs contribute to the low labor force participation rate.

Q12. Which of the following is a major challenge faced by the Indian economy in terms of job creation?
a) High investment in infrastructure
b) Low investment in infrastructure
c) High skill development
d) High population growth

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Correct Answer: d) High population growth
Explanation: High population growth is a major challenge faced by the Indian economy in terms of job creation. The rapid growth of the population has led to an increase in the number of job seekers, but the economy has not been able to generate enough employment opportunities to absorb the growing workforce.

Q13. Which of the following is a major government initiative aimed at promoting employment generation in India?
a) Pradhan Mantri Rojgar Protsahan Yojana (PMRPY)
b) Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA)
c) Pradhan Mantri Awas Yojana (PMAY)
d) National Skill Development Mission (NSDM)

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Correct Answer: a) Pradhan Mantri Rojgar Protsahan Yojana (PMRPY)
Explanation: The Pradhan Mantri Rojgar Protsahan Yojana (PMRPY) is a major government initiative aimed at promoting employment generation in India. The program provides incentives to employers for creating new employment opportunities, particularly in the formal sector.

Q14. Which of the following is a major challenge faced by the Indian economy in terms of underemployment?
a) High investment in education
b) Low investment in education
c) High labor force participation rate
d) High population growth

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Correct Answer: d) High population growth
Explanation: High population growth is a major challenge faced by the Indian economy in terms of underemployment. The rapid growth of the population has led to an increase in the number of job seekers, but the economy has not been able to generate enough employment opportunities to absorb the growing workforce, resulting in underemployment.

Q15. Which of the following is a major government initiative aimed at promoting skill development and employability in India?
a) Pradhan Mantri Kaushal Vikas Yojana (PMKVY)
b) Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA)
c) Pradhan Mantri Awas Yojana (PMAY)
d) National Skill Development Mission (NSDM)

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Correct Answer: a) Pradhan Mantri Kaushal Vikas Yojana (PMKVY)
Explanation: The Pradhan Mantri Kaushal Vikas Yojana (PMKVY) is a major government initiative aimed at promoting skill development and employability in India. The program provides skill training to the youth, enhances their employability, and promotes entrepreneurship.

Q16. Which of the following types of unemployment is most commonly found in the industrial sector in India?
a) Frictional unemployment
b) Structural unemployment
c) Cyclical unemployment
d) Disguised unemployment

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Correct Answer: b) Structural unemployment
Explanation: Structural unemployment is most commonly found in the industrial sector in India. It occurs when there is a mismatch between the skills of the available workers and the skills required by the available jobs. This type of unemployment can be caused by factors such as technological advancements, changes in industry structure, and regional disparities.

Q17. Which of the following is a major challenge faced by the Indian economy in terms of job quality?
a) High investment in infrastructure
b) Low investment in infrastructure
c) High skill development
d) High population growth

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Correct Answer: b) Low investment in infrastructure
Explanation: Low investment in infrastructure is a major challenge faced by the Indian economy in terms of job quality. Limited access to quality infrastructure, such as transportation, communication, and energy, hampers the ability of the economy to create high-quality jobs and improve overall productivity.

Q18. Which of the following is a major government initiative aimed at promoting self-employment and entrepreneurship in India?
a) Pradhan Mantri Mudra Yojana (PMMY)
b) Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA)
c) Pradhan Mantri Awas Yojana (PMAY)
d) National Skill Development Mission (NSDM)

Show Answer

Correct Answer: a) Pradhan Mantri Mudra Yojana (PMMY)
Explanation: The Pradhan Mantri Mudra Yojana (PMMY) is a major government initiative aimed at promoting self-employment and entrepreneurship in India. The program provides financial assistance to micro and small enterprises, helping them grow and create employment opportunities.

Q19. Which of the following is a major challenge faced by the Indian economy in terms of labor productivity?
a) High investment in education
b) Low investment in education
c) High labor force participation rate
d) High population growth

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Correct Answer: b) Low investment in education
Explanation: Low investment in education is a major challenge faced by the Indian economy in terms of labor productivity. Limited access to quality education and skill development opportunities hampers the ability of the workforce to acquire the skills needed for gainful employment and high productivity.

Q20. Which of the following is a major government initiative aimed at promoting employment generation in the manufacturing sector in India?
a) Make in India
b) Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA)
c) Pradhan Mantri Awas Yojana (PMAY)
d) National Skill Development Mission (NSDM)

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Correct Answer: a) Make in India
Explanation: The Make in India initiative is a major government initiative aimed at promoting employment generation in the manufacturing sector in India. The program seeks to transform India into a global manufacturing hub, attract foreign direct investment, and create employment opportunities.

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