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NDA 2020 GAT · General Knowledge · Indian Economy · medium

The type of unemployment commonly seen in Indian agriculture, where removal of some workers does not reduce output, is called

Single correct option

The type of unemployment commonly seen in Indian agriculture, where removal of some workers does not reduce output, is called
  1. A. frictional unemployment
  2. B. cyclical unemployment
  3. C. disguised unemployment
  4. D. structural unemployment
Show answer and solution

Answer: (C) disguised unemployment

Disguised unemployment occurs when more workers are engaged than needed, so the marginal productivity of the surplus labour is zero. Frictional unemployment arises from job switching, cyclical unemployment from business-cycle downturns, and structural unemployment from mismatches of skills and demand.
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