Disguised unemployment generally means
[amp_mcq option1=”large number of people remain unemployed” option2=”alternative employment is not available” option3=”marginal productivity of labour is zero” option4=”productivity of workers is low” correct=”option3″]
This question was previously asked in
UPSC IAS – 2013
The correct answer is C) marginal productivity of labour is zero.
Disguised unemployment occurs when people appear to be employed, but their contribution to total output is negligible or zero. This means that even if these individuals are removed from the workforce, the overall production level does not decrease. Their marginal productivity of labour (the additional output produced by employing one more unit of labour) is effectively zero or very close to it. This type of unemployment is common in agriculture in developing countries, where multiple family members might work on a small plot of land even though fewer could achieve the same output.