Which of the following correctly defines "Disguised unemployment"? |
More number of workers are involved than required Marginal productivity of an additional worker is almost zero Both 1 and 2 None of the above |
Both 1 and 2 |
The correct answer is option 3: Both 1 and 2 Disguised unemployment refers to a situation where more workers are engaged than actually required for a given level of output. As a result, the marginal productivity of some workers is zero or nearly zero, meaning that if they are withdrawn, total output does not fall. |