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Inflation and Unemployment Multiple Choice Questions with Answers. We covered all the Inflation and Unemployment Multiple Choice Questions with Answers in this post for free so that you can practice well for the exam.
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Inflation and Unemployment Multiple Choice Questions with Answers for Students
Which type of unemployment happens in India when workers are engaged in tourist or seasonal jobs but remain unemployed during off-peak periods?
a) Cyclical unemployment
b) Hidden (disguised) unemployment
c) Seasonal unemployment
d) Underemployment
Option c – Seasonal unemployment
What is considered the primary reason for unemployment in India?
a) Overpopulation
b) High literacy and educational standards
c) Environmental factors
d) Shortage of available labour
Option a – Overpopulation
Based on research, which education group in India faces the highest unemployment?
a) People with primary education
b) Graduates and post-graduates
c) Middle School educated individuals
d) High School (matriculate) educated individuals
Option b – Graduates and post-graduates
What is the term for the observed relationship between changes in Money supply, wages, and unemployment?
a) Phillips curve
b) Baumol’s hypothesis
c) Friedman’s model
d) Keynesian framework
Option a – Phillips curve
Which sector in India is most affected by seasonal unemployment?
a) Manufacturing
b) Information Technology
c) Healthcare/Medical
d) Agriculture
Option d – Agriculture
Which government program ensures 100 days of guaranteed wage employment for rural households willing to perform unskilled labor?
a) Pradhan Mantri Garib Kalyan Rojgar Abhiyaan
b) Mahatma Gandhi National Rural Employment Guarantee Scheme
c) National Career Service
d) Pradhan Mantri Rojgar Protsahan Yojana
Option b – Mahatma Gandhi National Rural Employment Guarantee Scheme
What type of unemployment is caused by a mismatch between skills and available jobs among educated youth in India?
a) Educated unemployment
b) Structural unemployment
c) Technological unemployment
d) Cyclical unemployment
Option a – Educated unemployment
Which type of unemployment occurs during an economic downturn or depression?
a) Frictional unemployment
b) Cyclical unemployment
c) Structural unemployment
d) Seasonal unemployment
Option b – Cyclical unemployment
Which unemployment level represents the natural baseline that an Economy can sustain without triggering inflation?
a) Hidden (disguised) unemployment
b) Structural unemployment
c) Frictional unemployment
d) Natural unemployment
Option d – Natural unemployment
How is the unemployment rate calculated?
a) (Unemployed male workers ÷ Total labour force) × 1000
b) (Unemployed workers ÷ Total labour force) × 100
c) (Employed workers ÷ Total labour force) × 100
d) (Employed workers ÷ Male labour force) × 100
Option b – (Unemployed workers ÷ Total labour force) × 100
Which type of unemployment is also known as real wage unemployment?
a) Classical unemployment
b) Seasonal unemployment
c) Structural unemployment
d) Frictional unemployment
Option a – Classical unemployment
In India, when was the Flexible Inflation Targeting Framework (FITF) implemented following the RBI Act amendment of 1934?
a) 2020
b) 2016
c) 2010
d) 2014
Option b – 2016
Lack of fiscal discipline by the government can result in: I. Excessive government spending II. Inflation
a) Only I
b) Only II
c) Neither I nor II
d) Both I and II
Option d – Both I and II
Price controls and rationing are examples of measures used to manage:
a) Inflation
b) Disinflation
c) Deflation
d) Reflation
Option a – Inflation
Which monetary policy stance is generally adopted to tackle inflation?
a) Dovish
b) Owlish
c) Hawkish
d) Hicksian
Option c – Hawkish
Which statement correctly describes disinflation?
a) Price rise limited to a few commodities only
b) A general decrease in prices over time
c) A slowdown in the rate of inflation
d) A sudden steep drop in prices due to unexpected events
Option c – A slowdown in the rate of inflation
A continuous increase in the general price level of an Economy is called:
a) Inflation
b) Disinflation
c) Stagflation
d) Deflation
Option a – Inflation
If Money supply is low relative to the availability of goods and services, the likely effect is:
a) Hyperinflation
b) Deflation
c) Inflation
d) Currency devaluation
Option b – Deflation
How is inflation measured in India?
a) Consumer Price Index (CPI)
b) Wholesale Price Index (WPI)
c) Both CPI and WPI
d) GDP
Option a – Consumer Price Index (CPI)
The economic condition of high inflation, slow growth, and high unemployment is called:
a) Stagflation
b) Economic stagnation
c) Take-off stage
d) Recession
Option a – Stagflation
Which measures are usually adopted by the Reserve Bank of India to curb inflation?
a) Increase the repo rate
b) Increase Money supply
c) Reduce the cash reserve ratio
d) Both increase repo rate and reduce cash reserve ratio
Option a – Increase the repo rate
The Department for Promotion of Industry and Internal Trade (DPIIT) updated the Base year for the index of Eight Core Industries, which together account for around 40.27% of the Index of Industrial Production. Which of the following is not included in these Eight Core Industries?
a) Refinery products
b) Coal
c) Cement
d) Rubber products
Option d – Rubber products
Which of the following scenarios is likely to cause inflation?
a) When aggregate demand surpasses supply
b) Rapid expansion in aggregate demand
c) Reduction in the Money supply
d) High unemployment levels
Option a – When aggregate demand surpasses supply
A continuous fall in the general price level is referred to as:
a) Stagflation
b) Deflation
c) Recession
d) Devaluation
Option b – Deflation
The rise in Wholesale Price Inflation in India during 2021–2022 was caused by which of the following factors? 1. Sharp increase in global crude oil prices 2. Economic slowdown after COVID-19 3. Disruptions in international supply chains 4. Rising freight and logistics costs. Select the correct option:
a) 1, 3, and 4
b) 2 and 3 only
c) 1 and 4 only
d) 1 and 2 only
Option a – 1, 3, and 4
Consider these statements about the weightage of items in the Wholesale Price Index (WPI): 1. Fuel and power have greater weight than primary commodities 2. Manufactured products carry more weight than fuel and power. Which of the statements is correct?
a) 2 only
b) 1 only
c) Neither 1 nor 2
d) Both 1 and 2
Option a – 2 only
Which of the following statements regarding price index is accurate? 1. A price index reflects the average price change of a fixed basket of goods 2. If a price index records values of 100, 110, and 121 in three successive years, the inflation rates in the 2nd and 3rd years are 10% and 10% respectively
a) 2 only
b) 1 only
c) Neither 1 nor 2
d) Both 1 and 2
Option b – 1 only
About casual workers in India, consider the following: 1. All casual workers are covered under the Employees Provident Fund 2. Casual workers are entitled to standard working hours and overtime pay 3. The government can require establishments to pay wages only through Bank transfers. Which statements are correct?
a) 1, 2, and 3
b) 2 and 3 only
c) 1 and 2 only
d) 1 and 3 only
Option b – 2 and 3 only
Which definition best describes flexi workers in India?
a) Staff on formal contracts employed through organized contract arrangements
b) Workers in the informal urban sector
c) Migrant agricultural labourers moving to urban areas
d) Regular salaried employees in registered companies
Option a – Staff on formal contracts employed through organized contract arrangements
In computing the Consumer Price Index (CPI), the category ‘housing’ is classified as: ( Inflation and Unemployment Multiple Choice Questions with Answers )
a) Core consumer durable
b) Core consumer non-durable
c) Core capital goods
d) Core service
Option b – Core consumer non-durable
Core inflation is calculated as: ( Inflation and Unemployment Multiple Choice Questions with Answers )
a) CPI headline inflation excluding all non-Food items
b) WPI inflation excluding both Food and non-Food items
c) CPI headline inflation excluding Food and energy components
d) WPI inflation excluding Food and energy components
This type of unemployment occurs when a worker leaves their current job and searches for a new one. ( Inflation and Unemployment Multiple Choice Questions with Answers )
a) Disguised unemployment
b) Voluntary unemployment
c) Classical unemployment
d) Frictional unemployment
Option d – Frictional unemployment
When unemployment continues over a long period in a country, it is referred to as: ( Inflation and Unemployment Multiple Choice Questions with Answers )
a) Technological unemployment
b) Casual unemployment
c) Chronic unemployment
d) Frictional unemployment
Option c – Chronic unemployment
A person is classified as marginally employed if they have worked for less than ___ months in the year before the Census. ( Inflation and Unemployment Multiple Choice Questions with Answers )
a) 12
b) 6
c) 3
d) 9
Option b – 6
Which curve illustrates the link between unemployment levels and changes in nominal wages? ( Inflation and Unemployment Multiple Choice Questions with Answers )
a) Demand curve
b) Phillips curve
c) Indifference curve
d) Supply curve
Option b – Phillips curve
Which of the following is not a recognized method to measure unemployment in India? ( Inflation and Unemployment Multiple Choice Questions with Answers )
a) Monthly Status Approach
b) Weekly Status Approach
c) Usual Status Approach
d) Daily Status Approach
Option a – Monthly Status Approach
The Bhagwati Committee of 1973 submitted a report primarily on: ( Inflation and Unemployment Multiple Choice Questions with Answers )
a) Unemployment
b) Poverty
c) Population growth
d) Commerce
Option a – Unemployment
Which sector employs the largest number of workers in India? ( Inflation and Unemployment Multiple Choice Questions with Answers )
a) Agriculture
b) Service
c) banking
d) Industry
Option a – Agriculture
The type of unemployment commonly found in Indian Agriculture is called: ( Inflation and Unemployment Multiple Choice Questions with Answers )
a) Disguised unemployment
b) Frictional unemployment
c) Closed unemployment
d) Open unemployment
Option a – Disguised unemployment
Consider the following: i. A marginal worker is one who works less than six months (183 days) a year. ii. A main worker is one who works at least 300 days (ten months) a year. Which of the above is correct?
a) Both i and ii are correct
b) Only ii is correct
c) Only i is correct
d) Both i and ii are incorrect
Option c – Only i is correct
The working-age Population in India typically falls within which age range? ( Inflation and Unemployment Multiple Choice Questions with Answers )
a) 15–59 years
b) 16–65 years
c) 20–64 years
d) 18–64 years
Option a – 15–59 years
Unemployment that arises during economic downturns and recessions is called: ( Inflation and Unemployment Multiple Choice Questions with Answers )
a) Cyclical unemployment
b) Seasonal unemployment
c) Frictional unemployment
d) Disguised unemployment
Option a – Cyclical unemployment
Which of the following can contribute to unemployment? ( Inflation and Unemployment Multiple Choice Questions with Answers )
a) Rapid economic growth
b) Strong education system
c) Slow Population growth
d) High levels of migration to a region
Option d – High levels of migration to a region
When a person is employed but their work does not add to actual output, it is known as: ( Inflation and Unemployment Multiple Choice Questions with Answers )
a) Cyclical unemployment
b) Seasonal unemployment
c) Frictional unemployment
d) Disguised unemployment
Option d – Disguised unemployment
Leaving a job voluntarily or involuntarily without securing a new one is referred to as: ( Inflation and Unemployment Multiple Choice Questions with Answers )
a) Disguised unemployment
b) Seasonal unemployment
c) Cyclical unemployment
d) Frictional unemployment
Option d – Frictional unemployment
Labour engaged in a job but not effectively contributing to production is classified as: ( Inflation and Unemployment Multiple Choice Questions with Answers )
a) Educated unemployment
b) Seasonal unemployment
c) Disguised unemployment
d) Urban unemployment
Option c – Disguised unemployment
Which of the following statements about unemployment is incorrect? ( Inflation and Unemployment Multiple Choice Questions with Answers )
a) Slow economic growth increases unemployment
b) Structural unemployment occurs due to automation or shifts in demand
c) Economic recessions cause cyclical unemployment
d) At full employment, the unemployment rate is negative
Option d – At full employment, the unemployment rate is negative
Based on employment patterns, the Economy is categorized into: ( Inflation and Unemployment Multiple Choice Questions with Answers )
a) Organized and unorganized sectors
b) Private and public sectors
c) Seasonal and disguised sectors
d) Primary, secondary, and tertiary sectors
Option a – Organized and unorganized sectors
Which sectors are designated as critical by the National Critical Information Infrastructure Protection Centre? 1. power and energy 2. Industry 3. banking and Financial Services 4. Irrigation 5. Education
a) 1 and 3 only
b) 3, 4, and 5
c) 1, 3, and 4
d) 1, 2, and 4
Option a – 1 and 3 only
Retail core inflation is calculated by excluding which items? 1. Food and beverages 2. Fuel and Light 3. Transport and Communication 4. Clothing and education ( Inflation and Unemployment Multiple Choice Questions with Answers )
a) 1 and 2 only
b) 1, 2, and 3 only
c) 3 and 4 only
d) 1, 2, 3, and 4
Option a – 1 and 2 only
The gap between the location or type of job vacancies and available workers is termed: ( Inflation and Unemployment Multiple Choice Questions with Answers )
a) Structural unemployment
b) Disguised unemployment
c) Altered unemployment
d) Cyclical unemployment
Option a – Structural unemployment
An Economy that experiences slow growth along with rising prices is referred to as: ( Inflation and Unemployment Multiple Choice Questions with Answers )
a) Stagnation
b) Deflation
c) Stagflation
d) Recession
Option c – Stagflation
We covered all the Inflation and Unemployment Multiple Choice Questions with Answers above in this post for free so that you can practice well for the exam.
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