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 correct answer is Option 2: Disguised unemployment

Disguised unemployment is the category where an additional worker's marginal productivity is zero. This means that adding another worker to the existing labor force does not increase production. In disguised unemployment, people are employed in activities that are not fully productive or necessary, such as family farms where there are more workers than can be effectively used.