Question : The term "underemployment" refers to a situation where individuals:
Option 1: Are unemployed and actively seeking work
Option 2: Are working less than their full capacity or in jobs below their skill level
Option 3: Are employed in the informal sector
Option 4: Are engaged in seasonal work
Correct Answer: Are working less than their full capacity or in jobs below their skill level
Solution : The correct answer is (b) Are working less than their full capacity or in jobs below their skill level
The term "underemployment" refers to a situation where individuals are working less than their full capacity or are employed in jobs that are below their skill level or qualifications. Underemployment occurs when individuals have the desire and availability to work more hours or in better-quality jobs but are unable to do so.
Underemployment is often considered a form of labor market inefficiency because it signifies a mismatch between the skills and qualifications of individuals and the available job opportunities. It can result in lower productivity, reduced income levels, and dissatisfaction among workers.
It's important to note that underemployment is distinct from unemployment, which refers to individuals who are actively seeking work but are unable to find suitable employment. Underemployment refers to individuals who are already employed but are not fully utilizing their skills or working to their full potential.
Question : The concept of "open unemployment" refers to:
Option 1: Individuals who are unemployed and actively seeking employment.
Option 2: Individuals who are employed but looking for better job opportunities.
Option 3: Individuals who are unemployed but not actively seeking employment.
Option 4: Individuals who are temporarily unemployed due to seasonal factors.
Question : The concept of "seasonal unemployment" refers to:
Option 1: Individuals who are unemployed due to changes in the business cycle.
Option 2: Individuals who are unemployed during specific seasons of the year.
Option 3: Individuals who are unemployed and actively seeking employment.
Option 4: Individuals who are employed but working fewer hours than desired.
Question : The concept of "voluntary unemployment" refers to:
Option 1: Individuals who are unemployed and actively seeking employment
Option 2: Individuals who choose not to work despite being capable of doing so
Option 3: Individuals who are unemployed due to changes in the business cycle
Option 4: Individuals who are unemployed and discouraged from seeking employment
Question : The concept of "underemployment" refers to:
Option 1: Having multiple jobs simultaneously
Option 2: Working fewer hours than required
Option 3: Being employed in a low-skilled occupation
Option 4: Being unemployed despite seeking employment
Question : The concept of "labor force" includes:
Option 1: Employed individuals ony
Option 2: Unemployed individuals only
Option 3: Employed and unemployed individuals
Option 4: Working-age population
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