Question

The term “disguised unemployment” generally means:

• A. Unlimited demand of labour in the subsistence sector
• B. Marginal product of labour is almost zero
• C. Informal economy of the urban sector harbours the bulk of unemployed labour in transition
• D. Seasonal unemployment

Hint:

Remember the differences:
• Disguised Unemployment $\rightarrow$ More workers than required; marginal productivity is nearly zero.
• Seasonal Unemployment $\rightarrow$ Employment available only during certain seasons.
• Open Unemployment $\rightarrow$ Workers are willing to work but cannot find jobs.
• Underemployment $\rightarrow$ Workers are employed below their skill level or for fewer hours than desired. A simple memory aid: \[ \boxed{ \text{Disguised Unemployment} = \text{Extra Labour + Zero Marginal Product} } \]

Answer 1

The Correct Option is B