If Labour Force Participation Rate (LFPR) is 50% and Worker Population Ratio (WPR) is 45%, what is the Unemployment Rate ?
- A.5%
- B.10%
- C.15%
- D.Cannot be determined
Correct answer
Explanation
The correct answer is B, 10%. The unemployment rate is the share of the labour force that has no work, so it is worked out as (LFPR − WPR) ÷ LFPR × 100. Here (50 − 45) ÷ 50 × 100 = 10%. The Labour Force Participation Rate is the share of the population that is either working or seeking work, and the Worker Population Ratio is the share of the population that is actually employed. Both are measured against the whole population, while the unemployment rate is measured against the labour force alone. In India these three measures are reported by the Periodic Labour Force Survey of the National Statistics Office. Option A is wrong because 5% is the gap as a share of the whole population, not of the labour force. Option C is wrong because 15% does not follow from the figures given. Option D is wrong because the two ratios given are enough to calculate the rate. Exam tip: unemployment rate = (LFPR − WPR) ÷ LFPR; divide by the labour force, not by the population.
Practice Questions
View allAmong the agricultural commodities imported by India, which one of the following accounts for the highest imports in terms of value in the last five years?
- A.Spices
- B.Fresh fruits
- C.Pulses
- D.Vegetable oils
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Edible vegetable oils are India's largest agricultural import by value, and they have stayed at the top since well before this question was set.
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- A.European Union
- B.Gulf Cooperation Council
- C.Organization for Economic Cooperation and Development
- D.Shanghai Cooperation Organization
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The Broad-based Trade and Investment Agreement was the name given to the free trade agreement that India and the European Union began negotiating in 2007.
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- A.1 only
- B.2 only
- C.Both 1 and 2
- D.Neither 1 nor 2
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- A.1 only
- B.2 and 3 only
- C.1 and 3 only
- D.1, 2 and 3
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Read the full explanation →Which one of the following is not a strategy in the Rainfed Area Development (RAD) scheme of India?
- A.Diversified farming
- B.Soil health management
- C.Adaptation of cluster-based approaches
- D.Optimizing canal irrigation
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Rainfed Area Development is meant for farms that depend on rain, not on canals, so improving canal irrigation is not one of its strategies.
Read the full explanation →