Question

State the meaning of 'Disguised Unemployment'.

Hint:

Remember: Disguised unemployment often occurs in sectors where labor is abundant, but the work is inefficient, leading to underutilized workers.

Answer 1

Step 1: Definition of Disguised Unemployment.
Disguised unemployment refers to a situation where more people are employed than are actually needed in a given sector or job, resulting in a situation where individuals do not contribute significantly to production or income. These workers may appear to be employed, but they are underutilized or redundant.
Step 2: Example of Disguised Unemployment.
In agriculture, many people may work on the farm but are not contributing significantly to the overall production. For example, if a family farm can produce the same amount of crops with fewer workers, the extra workers are considered to be "disguisedly" unemployed.