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What is the primary difference between open unemployment and disguised unemployment?
  • a)
    Open unemployment is more common in rural areas, while disguised unemployment is more common in urban areas.
  • b)
    Open unemployment involves individuals who are completely jobless, while disguised unemployment involves individuals who are employed but not fully utilized.
  • c)
    Open unemployment occurs during economic recessions, while disguised unemployment occurs during economic booms.
  • d)
    There is no significant difference between open unemployment and disguised unemployment.
Correct answer is option 'B'. Can you explain this answer?

Debanshi Desai answered
Primary Difference Between Open Unemployment and Disguised Unemployment:
Open Unemployment:
- Open unemployment refers to individuals who are completely jobless and actively seeking employment.
- These individuals are not engaged in any productive work and are visibly unemployed.
- It is more common in urban areas where job opportunities may be limited, leading to a higher rate of open unemployment.
Disguised Unemployment:
- Disguised unemployment, on the other hand, involves individuals who are employed but not fully utilized in their current roles.
- These individuals may be working in jobs that do not require their full capacity or skills, leading to underemployment.
- Disguised unemployment is often seen in sectors like agriculture, where too many people are engaged in a task that could be done by fewer workers.

Key Difference:
- The primary difference between open unemployment and disguised unemployment is that open unemployment involves individuals who are completely jobless, while disguised unemployment involves individuals who are employed but not fully utilized.
In conclusion, while open unemployment and disguised unemployment both represent forms of underutilization of human resources, the key distinction lies in the fact that open unemployment involves visible joblessness, whereas disguised unemployment involves individuals who are employed but not optimally utilized in their current positions.

Which type of unemployment is characterized by a scarcity of land, capital, or skill in the economy, causing a structural disequilibrium in the labor sector?
  • a)
    Open unemployment.
  • b)
    Seasonal unemployment.
  • c)
    Disguised unemployment.
  • d)
    Structural unemployment.
Correct answer is option 'D'. Can you explain this answer?

Anu Choudhary answered
Structural Unemployment:
Structural unemployment is characterized by a scarcity of land, capital, or skill in the economy, causing a structural disequilibrium in the labor sector. Let's break down the key points to understand this type of unemployment better:
1. Cause:
Structural unemployment occurs when there is a mismatch between the skills of the workforce and the requirements of the economy. This can be due to technological advancements, changes in the structure of industries, or a lack of necessary skills in the labor force.
2. Scarcity of Resources:
Unlike other types of unemployment, structural unemployment is not primarily caused by fluctuations in demand or seasonal factors. Instead, it is a result of a long-term imbalance in the labor market due to a scarcity of land, capital, or specific skills.
3. Impact:
Structural unemployment can have a lasting impact on the economy as it leads to persistent joblessness for certain groups of workers. This can result in income inequality, reduced productivity, and social unrest.
4. Solutions:
Addressing structural unemployment requires long-term strategies such as investing in education and training programs to equip workers with the skills needed in the evolving economy. Policies that promote innovation, entrepreneurship, and retraining can also help reduce the structural imbalances in the labor market.
In conclusion, structural unemployment is a complex issue that requires targeted interventions to address the underlying causes of the mismatch between labor supply and demand. By implementing appropriate policies and programs, governments and businesses can work towards creating a more inclusive and sustainable economy.

Which phase of India's poverty alleviation strategy focused on creating more wealth and enabling the poor to benefit from economic growth?
  • a)
    The first phase.
  • b)
    The second phase.
  • c)
    The third phase.
  • d)
    The text does not provide information on the phases.
Correct answer is option 'C'. Can you explain this answer?

Valor Academy answered
As per the information in the text, the third phase of India's poverty alleviation strategy, starting from the 1990s, focused on creating more wealth and enabling the poor to benefit from the secondary effects of economic growth.

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