Question:medium

Disguised unemployment means:

Show Hint

Disguised Unemployment = Extra workers present but production remains unchanged.
Updated On: Jun 10, 2026
  • More manpower than needed in industry.
  • More manpower than needed in service sector.
  • Employment of more people than necessary in the agriculture sector.
  • Inadequate employment in industrial, service sector.
Show Solution

The Correct Option is C

Solution and Explanation

Step 1: Read the term.
We must explain what disguised unemployment means and pick the matching option.

Step 2: Meaning of the term.
Disguised unemployment is when more people are working on a task than are actually needed. They look employed, but some of them add nothing extra to the output.

Step 3: A simple example.
Suppose a farm really needs only $5$ workers, but $8$ family members work on it. The output stays the same. The extra $3$ workers are not truly adding value.

Step 4: Where it is common.
This problem is seen mostly in agriculture, where whole families work on small plots of land even when fewer hands would do.

Step 5: Test the options.
The options about industry and the service sector do not fit the classic meaning. The one about agriculture, where more people work than needed, fits exactly.

Step 6: Choose the answer.
So disguised unemployment means employing more people than necessary in the agriculture sector.
\[ \boxed{\text{Employment of more people than necessary in the agriculture sector.}} \]
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