gs1medium

Disguised unemployment generally means:

  1. A.large number of people remain unemployed
  2. B.alternative employment is not available
  3. C.marginal productivity of labour is zero
  4. D.productivity of workers is low
▶ Answer & Explanation

Correct answer: C. marginal productivity of labour is zero

Disguised unemployment is a situation where more workers are employed than are actually needed to produce a certain output. In such cases, if some workers are removed, the total output does not fall because their marginal productivity is zero or negligible. This is commonly observed in agriculture and other traditional sectors.

Source: UPSC gs1 2013

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