Question
Disguised unemployment generally means
(a) large number of people remain unemployed
(b) alternative employment is not available
(c) marginal productivity of labour is zero
(d) productivity of workers is low
Answer:
C
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Explanation:
Disguised unemployment refers to a situation where a larger number of people are employed in a task or sector than actually required. In such a case, the marginal productivity of labor becomes zero, meaning that the additional workers are not contributing to any increase in output. This can occur in sectors where the productivity of workers is low or where alternative employment opportunities are not available.