Single correct option
When more people are engaged in agriculture than are actually required and some can be withdrawn without reducing output, the situation is called:
- A. Frictional unemployment
- B. Disguised unemployment
- C. Cyclical unemployment
- D. Seasonal unemployment
Show answer and solution
Answer: (B) Disguised unemployment
Disguised unemployment means that surplus workers, usually in family farms, add nothing to total output, and is common in rural India. Frictional unemployment arises from job changes, cyclical from recessions, and seasonal from the agricultural calendar when work is available only part of the year.
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