Practicing Success

Target Exam

CUET

Subject

Economics

Chapter

Indian Economic Development: Employment - Growth, Informalisation and Other Issues

Question:

In which category of unemployment is an additional worker’s marginal productivity zero?

Options:

Seasonal unemployment

Disguised unemployment

Structural unemployment

Involuntary unemployment

Correct Answer:

Disguised unemployment

Explanation:

The term "Disguised unemployment" refers to a situation in which available job assignments are divided among resources (usually labour) in such a way that they appear to be fully occupied, but in reality, much of their time is spent in unproductive activities.