Practicing Success

Target Exam

CUET

Subject

Economics

Chapter

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

Question:

Girdharilal Gandhi is the owner of Pritam Ltd. He hired 250 workers in his factory. If 25 workers are dismissed by him without any loss to production, then what will this situation be called as?

Options:

Casual unemployment

Disguised unemployment

Structural unemployment

Seasonal unemployment

Correct Answer:

Disguised unemployment

Explanation:

Even after dismissing 25 workers by Girdharilal, the production level of the firm did not fall, which denotes that the marginal productivity of those workers was zero. This happens in the case of "Disguised unemployment".