Question

Which of the following statements correctly define unemployment as per economic principles?

1. Unemployment is a situation where a person is capable of working physically and mentally at the existing wage rate but cannot find a job.
2. Unemployment only refers to individuals who are unwilling to work at the prevailing wage rate.
3. A person who is working part-time against their will is considered fully employed and not part of unemployment statistics.

• A. i മാത്രം
• B. ഇവയൊന്നുമല്ല
• C. iii
• D. ii

Answer 1

Answer:

A. i മാത്രം

• Unemployment is a critical economic indicator that reflects the health of an economy.

• It refers to a situation where individuals who are actively seeking employment and are available to work at the prevailing wage rates cannot find suitable jobs.

• It does not include those who are unable to work due to physical or mental limitations, nor those who choose not to work.

• Different types of unemployment exist, such as frictional, structural, cyclical, and seasonal unemployment, each arising from distinct economic circumstances.

• For example, frictional unemployment is temporary, occurring when people are transitioning between jobs, while structural unemployment arises from a mismatch between the skills of job seekers and the skills required for available jobs.