What is the definition of unemployment according to Prof. Pigou?
A situation where a person is willing, capable, and ready to work at the current wage but cannot obtain work.
What distinguishes compulsory unemployment from voluntary unemployment?
Compulsory unemployment affects willing and able workers who cannot find work, unlike voluntary unemployment.
Why is voluntary unemployment not considered an economic problem?
Because it concerns people who are unwilling to work.
What are Raj Krishna's four measures of unemployment?
Time, income, willingness, and productivity.
Which report introduced Raj Krishna's four measures of unemployment?
Shri Raj Krishna committee Report, 2011-12.
What is open unemployment?
When qualified people ready to work at current wages get no job.
When does underemployment occur?
When workers cannot fully use their capabilities or work all willing hours.
What defines disguised unemployment?
Too many workers with given technology, some can be removed without reducing output.
What is the marginal productivity of workers in disguised unemployment?
Zero.
What causes cyclical unemployment during a depression?
Reduced effective demand lowers production and causes retrenchment of workers.
What is frictional unemployment?
Short-term unemployment from workers learning new work before re-employment.
Why is India's unemployment mainly structural and long term?
Because labour supply rises rapidly while employment opportunities grow more slowly due to structural limitations.
How much does India's population increase annually?
By about 1.70 crore each year.
What effect does India's population growth have on labour supply?
It adds rapidly to the labour supply.
What was India's economic growth rate in the first three decades of planning?
3.5 percent.
What were the growth rates during the tenth and eleventh Five Year Plans?
7.6 percent in the tenth and 7.8 percent in the eleventh.
What happened to unemployment despite economic growth in India?
Unemployment continued to rise.
Why does capital-intensive production increase unemployment in India?
It uses more capital and less labour despite India's capital scarcity and labour abundance.
What does lack of vocational education cause in workers?
It causes educational unemployment due to missing technical skills.
How does population control affect labour supply growth?
It reduces the growth of labour supply.
Which industries should employment-oriented planning promote?
Labour-intensive industries, consumer goods, small and medium enterprises, trade, animal husbandry, and dairy development.
How much more employment can small industries create than big industries with the same capital?
7.5 times more employment.
How does extending rural infrastructure affect employment and agriculture?
It creates local employment and supports agriculture and allied activities.
According to P. C. Mahalnobis, how many people does ₹1 crore investment in agriculture employ?
40,000 people.
According to P. C. Mahalnobis, what production increase results from ₹1 crore investment in agriculture?
5.7 percent increase.
According to P. C. Mahalnobis, how many people does ₹1 crore investment in big industries employ?
500 people.
According to P. C. Mahalnobis, what production increase results from ₹1 crore investment in big industries?
1.4 percent increase.
Who estimated employment and production effects of ₹1 crore investments in agriculture and industry?
P. C. Mahalnobis.
What agricultural expansions can increase employment and reduce rural unemployment?
Green Revolution, irrigation, soil conservation, mixed farming, forest development, multiple cropping, and agro-based rural industries.
When did the National Rural Employment Guarantee Act begin?
February 2006
On which date was the National Rural Employment Guarantee Act renamed MGNREGA?
2 October 2009
What is the minimum employment guaranteed by MGNREGA per rural family annually?
100 days per year
What fraction of MGNREGA employment is reserved for females?
One-third
What is the maximum distance for MGNREGA work from residence without extra wages?
5 km
What age range generally defines the active labour force?
People aged 15 to 64 years.
What criteria define the active labour force besides age?
Being capable, willing, and ready to work at the current wage rate.
In which years did the Great Depression occur?
1929-30
Why do low savings and investment restrict employment creation in India?
Because low per capita income leaves little surplus for investment in industry, agriculture, and other sectors.
What results from lack of manpower planning in education?
Graduates' skills and numbers do not match labour demand, causing educated unemployment.
What additional effect can lack of manpower planning have besides unemployment?
It can cause a brain drain to foreign countries.
What restricts worker mobility to available jobs?
Family relations, language, religion, caste, culture, lack of information, transport, and housing.
What should employment-oriented education combine with vocational training?
Trade, commerce, agriculture, and industry.
With what should employment-oriented education be aligned?
Human-resource planning and future labour demand.
According to Dr. M. S. Swaminathan, what is the effect of directing development toward agriculture?
It can create many times more employment.
When did Pandit Deendayal Upadhyay Shramev Jayate Yojana start?
16 October 2014
When did Deendayal Upadhyay Gramin Kaushalya Yojana start?
25 September 2014
What is the slogan of the Prime Minister Agricultural Irrigation Programme started in 2015?
Water to every field
Test your knowledge with 21 questions on Unemployment Economics.
1. Which situation best fits the economic definition of unemployment?
2. Which person is experiencing compulsory rather than voluntary unemployment?
Review the complete course in the study sheet for Unemployment Economics.
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