Employment, Migration & Urbanization Mcqs - Set 1

1)   The Keynesian remedy for unemployment is to ?

a. decrease aggregate demand
b. reduce tax rates or lower interest rates
c. decrease government spending
d. decrease private consumption and investment
Answer  Explanation 

ANSWER: decrease private consumption and investment

Explanation:
No explanation is available for this question!


2)   Which of the following is not TRUE about rural urban migration ?

a. Migration to the cities is a larger contributor than natural population growth to urban labor growth is sub Saharan Africa
b. In Latin America natural population increase is the major source of urban growth
c. From 1975 to 2000 the number of cities in LDC with populations over 1 million increased from 20 to 50
d. The urban share of total LDC population grew from 27 percent in 1975 and 35 percent in 1992 to 40 percent in 2003
Answer  Explanation 

ANSWER: In Latin America natural population increase is the major source of urban growth

Explanation:
No explanation is available for this question!


3)   The theoretical basis for zero marginal productivity of labor was the concept of ?

a. marginal rate of substitution
b. labor force literacy
c. substitution of leisure and work among labor
d. limited technical sustainability of factors
Answer  Explanation 

ANSWER: limited technical sustainability of factors

Explanation:
No explanation is available for this question!


4)   The invisibly underemployed ?

a. are workers who are compelled to work short hours
b. result from an inadequate use of workers capacities
c. are part-time workers who voluntarily work short hours
d. None of the above is correct
Answer  Explanation 

ANSWER: result from an inadequate use of workers capacities

Explanation:
No explanation is available for this question!


5)   Which of the following is not TRUE about unemployed in LDCs ?

a. The unemployment rate for youths is twice that of people over 24
b. Unemployment in rural areas is twice that of urban areas
c. World-wide there are fewer unemployed females than males, but the rate is higher for women
d. The unemployed are relatively well educated
Answer  Explanation 

ANSWER: World-wide there are fewer unemployed females than males, but the rate is higher for women

Explanation:
No explanation is available for this question!


6)   The openly unemployed in LDCs are usually from all of the following except ?

a. persons 15 to 24 years old
b. the educated
c. residents of urban areas
d. from the poorest 1/5 of the population
Answer  Explanation 

ANSWER: from the poorest 1/5 of the population

Explanation:
No explanation is available for this question!


7)   Which of the following is not capita good ?

a. plant and equipment
b. buildings
c. inventories
d. consumers goods
Answer  Explanation 

ANSWER: consumers goods

Explanation:
No explanation is available for this question!


8)   Entrepreneurship is the ?

a. technique to manage raw materials efficiently
b. residual of a production function
c. resource coordinating other productive resources
d. blueprint on how to manage the labor force
Answer  Explanation 

ANSWER: resource coordinating other productive resources

Explanation:
No explanation is available for this question!


9)   Based on Nafziger and Auvinen’s study high unemployment rates ?
I- represent a vast underutilization of human resources
II- are potential source of social unrest and political discontent
III- are uncomerated with poverty and inequality in LCDs
IV- are associated with middle age rural uneducated males


a. I and II only
b. III and IV only
c. I, II and III only
d. I, II and IV only
Answer  Explanation 

ANSWER: I and II only

Explanation:
No explanation is available for this question!


10)   Policies to reduce factor price distortion include?
I- Encouraging small-scale industry
II- Decreasing subsidies to capital investors
III- Reducing social security programs and payroll taxation
IV- Setting market-clearing exchange rates


a. I and II only
b. II and III only
c. I, II and III only
d. I, II, III and IV
Answer  Explanation 

ANSWER: I, II, III and IV

Explanation:
No explanation is available for this question!


11)   The simplest explanation based on Lewis’s model for rural-urban migration is ?

a. That people migrate when urban wages exceed rural wages
b. a higher expected income in urban areas
c. better infrastructure in urban areas
d. the availability of labor-intensive jobs in urban areas
Answer  Explanation 

ANSWER: a higher expected income in urban areas

Explanation:
No explanation is available for this question!


12)   According to Harris and Todaro, creating urban jobs by expanding industrial output ?

a. is insufficient for solving the urban unemployment problem
b. will generate capital-intensive technologies
c. will generate more government revenue through urban wages
d. induces government to increase minimum wages
Answer  Explanation 

ANSWER: will generate capital-intensive technologies

Explanation:
No explanation is available for this question!


13)   Disguised unemployed is?

a. when marginal revenue productivity of labor is zero
b. the same as seasonal unemployment of LDC agricultural
c. the rigid factor proportions in LDC agriculture and industry
d. due to capital formation and the level of technology remaining constant.
Answer  Explanation 

ANSWER: when marginal revenue productivity of labor is zero

Explanation:
No explanation is available for this question!


14)   During the Great Depression workers in DCs who took inferior jobs as a result of being laid off were known as ?

a. disguised unemployed
b. cyclical unemployed
c. seasonally unemployed
d. voluntarily unemployed
Answer  Explanation 

ANSWER: disguised unemployed

Explanation:
No explanation is available for this question!


15)   The unemployment rate is the ?

a. employed plus unemployed divided by labor force
b. total employment divided by population
c. labor force divided by population
d. unemployed divided by employed
Answer  Explanation 

ANSWER: employed plus unemployed divided by labor force

Explanation:
No explanation is available for this question!


16)   Labor skills are a major component of ?

a. fertility
b. population quality
c. mortality
d. morbidity
Answer  Explanation 

ANSWER: population quality

Explanation:
No explanation is available for this question!


17)   In a production function Y = F(L, K,N,E,T) Y is ?

a. national product
b. capital
c. natural resources
d. prevailing technology
Answer  Explanation 

ANSWER: national product

Explanation:
No explanation is available for this question!


18)   A production function ?

a. shows the dependency output of the working population
b. depicts the relationship between input and output
c. states the relationship between products and income distribution
d. is a function of natural resources in a country
Answer  Explanation 

ANSWER: depicts the relationship between input and output

Explanation:
No explanation is available for this question!