Consider the following statements regarding the consequences of unemployment: 1. It leads to an efficient utilization of manpower resources. 2. It increases the economic overload on the working population. 3. It has a detrimental impact on the overall growth of an economy. Which of the following statements are correct ?

The correct option is (c). Explanation Unemployment refers to a situation where individuals who are capable of working and actively seeking employment are unable to find work. It represents a macroeconomic inefficiency and has significant social and economic repercussions. Statement-wise Analysis: - Statement 1 is Incorrect: Unemployment leads to the wastage of manpower resources rather than their efficient utilization. Individuals who could have contributed to the economy as assets become liabilities due to the lack of productive engagement. - Statement 2 is Correct: Unemployment increases the economic overload or dependency ratio. The unemployed population depends on the working population for subsistence, thereby increasing the financial burden on the productive workforce. - Statement 3 is Correct: Unemployment has a detrimental impact on the overall growth of an economy. It indicates a depressed economy, results in the loss of potential output (GDP), and reduces the aggregate demand necessary for economic expansion. Key Takeaway: Unemployment signifies a wastage of human capital, increases the dependency burden on the working population, and acts as a drag on overall economic development.

NCERT Class 9 Economics — Chapter 2: People as Resource

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Consider the following statements regarding the consequences of unemployment:

It leads to an efficient utilization of manpower resources.
It increases the economic overload on the working population.
It has a detrimental impact on the overall growth of an economy.

Which of the following statements are correct ?

Official previous-year question

Verified 1 Aug 2026.

Options

A1 and 2 only
B2 only
C2 and 3 only
D1, 2 and 3

Did you get this right?

Solution

The correct option is (c).

Explanation

Unemployment refers to a situation where individuals who are capable of working and actively seeking employment are unable to find work. It represents a macroeconomic inefficiency and has significant social and economic repercussions.

Statement-wise Analysis:

Statement 1 is Incorrect: Unemployment leads to the wastage of manpower resources rather than their efficient utilization. Individuals who could have contributed to the economy as assets become liabilities due to the lack of productive engagement.
Statement 2 is Correct: Unemployment increases the economic overload or dependency ratio. The unemployed population depends on the working population for subsistence, thereby increasing the financial burden on the productive workforce.
Statement 3 is Correct: Unemployment has a detrimental impact on the overall growth of an economy. It indicates a depressed economy, results in the loss of potential output (GDP), and reduces the aggregate demand necessary for economic expansion.

Key Takeaway:

Unemployment signifies a wastage of human capital, increases the dependency burden on the working population, and acts as a drag on overall economic development.

Your note

More from Chapter 2: People as Resource

Consider the following statements regarding 'Human Capital': 1. Human capital refers solely to the physical strength of the population. 2. Investment in human capital yields a return just like investment in physical capital. 3. It is considered superior to other resources like land and physical capital because it can make use of them. Which of the following statements are correct ?

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With reference to the classification of economic activities, consider the following 1. Mining and quarrying are classified under the primary sector. 2. Transport and communication are considered part of the primary sector. 3. Activities in the primary sector do not contribute to the national income. Which of the following statements are correct ?

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Consider the following statements regarding 'Market' and 'Non-Market' activities: 1. Market activities involve remuneration to anyone who performs the activity for pay or profit. 2. Government services are excluded from market activities. 3. Non-market activities are primarily for self-consumption and processing of primary products. Which of the following statements are correct ?

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Which of the following best describes the 'Virtuous Cycle' of human capital formation?

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Consider the following statements regarding the 'Sarva Shiksha Abhiyan': 1. It is a significant step towards providing elementary education to all children. 2. It focuses exclusively on higher education in universities. 3. It is a scheme implemented only in metropolitan cities. Which of the following statements are correct ?

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The correct option is (c).

Explanation

Statement-wise Analysis:

Statement 1 is Incorrect: Unemployment leads to the wastage of manpower resources rather than their efficient utilization. Individuals who could have contributed to the economy as assets become liabilities due to the lack of productive engagement.
Statement 2 is Correct: Unemployment increases the economic overload or dependency ratio. The unemployed population depends on the working population for subsistence, thereby increasing the financial burden on the productive workforce.
Statement 3 is Correct: Unemployment has a detrimental impact on the overall growth of an economy. It indicates a depressed economy, results in the loss of potential output (GDP), and reduces the aggregate demand necessary for economic expansion.

Key Takeaway:

Unemployment signifies a wastage of human capital, increases the dependency burden on the working population, and acts as a drag on overall economic development.