UPSC Prelims Practice Questions — How neoliberalism turned the world against its young

Q1. With reference to the youth unemployment rate and the youth NEET (Not in Employment, Education or Training) rate, consider the following statements: Which of the statements given above is/are correct?

  1. A young person who has stopped searching for work because they believe no jobs are available is counted in the NEET rate but not in the unemployment rate.
  2. A young person enrolled in a vocational training programme who is neither employed nor seeking work is not counted as NEET.
  3. A young person who is jobless, actively seeking work and not in education or training is counted in both the unemployment rate and the NEET rate.
  • A. 1 and 2 only
  • B. 1, 2 and 3
  • C. 1 only
  • D. 2 and 3 only

Q2. Consider the following statements: Which of the following is correct in respect of the above statements?

  1. A region can record youth unemployment below the global average while its youth NEET rate is above the global average.
  2. The NEET rate also counts young people who are outside the labour force and not in education or training, whereas the unemployment rate counts only those in the labour force who are without work and seeking it.
  • A. Both Statement-I and Statement-II are correct and Statement-II explains Statement-I
  • B. Both Statement-I and Statement-II are correct, but Statement-II does not explain Statement-I
  • C. Statement-I is correct, but Statement-II is incorrect
  • D. Statement-I is incorrect, but Statement-II is correct

Q3. An economy is in a slump caused by deficient aggregate demand. Consider the following statements in the light of Keynesian demand-side reasoning: Which of the statements given above is/are correct?

  1. If all firms cut wages at the same time, the resulting fall in workers' spending can leave total employment no higher than before.
  2. A spending cut fully matched by an equal reduction in the deficit leaves aggregate demand unchanged, so austerity is neutral for employment.
  3. A cut in government spending can reduce national output by more than the size of the cut itself.
  • A. 1 and 3 only
  • B. 1, 2 and 3
  • C. 1 only
  • D. 2 and 3 only

Q4. Consider the following assertion: Fiscal austerity during an economic slowdown can deepen youth unemployment. Which of the following statements support the above assertion?

  1. Falling household incomes reduce consumption, which weakens firms' incentive to expand capacity and hire.
  2. Cuts to public services such as schools directly reduce the number of public-sector jobs and posts.
  3. Young people are disproportionately new entrants to the labour market, so their prospects depend on fresh job creation more than on job retention.
  4. Lower government borrowing can ease interest rates and crowd in private investment.
  • A. 1 and 2 only
  • B. 1, 2, 3 and 4
  • C. 1, 2 and 3 only
  • D. 2, 3 and 4 only

Q5. Consider the following statements: Which of the following is correct in respect of the above statements?

  1. A large youth population with a high NEET rate can turn a potential demographic dividend into an economic burden.
  2. As fertility keeps declining, a population eventually ages and its old-age dependency ratio rises, closing the demographic window.
  • A. Both Statement-I and Statement-II are correct and Statement-II explains Statement-I
  • B. Both Statement-I and Statement-II are correct, but Statement-II does not explain Statement-I
  • C. Statement-I is correct, but Statement-II is incorrect
  • D. Statement-I is incorrect, but Statement-II is correct

Q6. For the same country and year, an international agency reports a youth unemployment rate for persons aged 15–24, the age band used for SDG indicator 8.6.1, while the national labour-force survey reports a youth unemployment rate for persons aged 15–29. The two figures differ. Which of the following inferences can validly be drawn from the above?

  1. The two youth unemployment figures cannot be compared directly without adjusting for the difference in age band.
  2. The national figure must be the lower of the two, because persons aged 25–29 always have lower unemployment than teenagers.
  3. The difference between the two figures does not, by itself, show that either source is inaccurate.
  • A. 2 and 3 only
  • B. 1 only
  • C. 1 and 2 only
  • D. 1 and 3 only

Q7. With reference to the International Labour Organization (ILO), consider the following statements: Which of the statements given above is/are NOT correct?

  1. Among UN agencies, only the ILO gives representatives of employers and workers a place alongside governments in its governing structure.
  2. Tripartism was added to the ILO's design only after it joined the United Nations system following the Second World War.
  3. The ILO places social dialogue between governments, employers and workers at the centre of its standard-setting and other activities.
  • A. 1 only
  • B. 2 and 3 only
  • C. 1 and 2 only
  • D. 2 only