Question : The concept of "cyclical unemployment" refers to:
Option 1: Unemployment caused by changes in the business cycle.
Option 2: Unemployment caused by the migration of workers to urban areas.
Option 3: Unemployment caused by the lack of job opportunities in rural areas.
Option 4: Unemployment caused by the introduction of labor-saving technologies.
Correct Answer: Unemployment caused by changes in the business cycle.
Solution : The correct answer is (a) Unemployment caused by changes in the business cycle.
The concept of "cyclical unemployment" refers to unemployment that is caused by changes in the business cycle or economic fluctuations. It occurs when there is a downturn or recession in the economy, leading to a decrease in aggregate demand and a decline in production and employment. During such periods, businesses may reduce their workforce or implement layoffs due to decreased demand for goods and services. Cyclical unemployment is considered a temporary type of unemployment and is closely tied to the overall health of the economy. As the economy recovers and expands, cyclical unemployment tends to decrease as businesses increase their hiring and production levels.
Question : The concept of "technological unemployment" refers to:
Option 3: Unemployment caused by the introduction of labor-saving technologies.
Option 4: Unemployment caused by the lack of job opportunities in rural areas.
Question : The concept of "structural unemployment" refers to:
Option 1: Unemployment caused by changes in the business cycle
Option 2: Unemployment caused by the lack of job opportunities in rural areas
Option 3: Unemployment caused by the introduction of labor-saving technologies
Option 4: Unemployment caused by the migration of workers to urban areas
Question : The concept of "residual unemployment" refers to:
Option 2: Unemployment that remains even at the peak of economic growth
Option 3: Unemployment caused by the lack of job opportunities in rural areas
Option 4: Unemployment caused by the introduction of labor-saving technologies
Question : The concept of "informalization of labor" refers to:
Option 1: The shift from formal employment to self-employment
Option 2: The increase in labor market regulations and protections
Option 3: The integration of the informal sector into the formal economy
Option 4: The migration of workers from rural to urban areas
Question : The concept of "brain drain" refers to:
Option 1: The emigration of skilled individuals from one country to another.
Option 2: The migration of individuals from rural to urban areas.
Option 3: The loss of jobs due to technological advancements.
Option 4: The withdrawal of workers from the labor force.
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