Question

An employment situation where the marginal productivity of agricultural labour is zero is known as :

• A. Seasonal unemployment
• B. Cyclical unemployment
• C. Disguised unemployment
• D. Disguised employment

Answer 1

The Correct Option is D

Step 1 — Recall the concept:
In economics, employment situations are often analyzed based on the productivity of labour. If adding more workers does not increase total output, it means the marginal productivity of labour is zero.

Step 2 — Meaning of disguised employment:
Disguised unemployment (or disguised employment) occurs when more people are employed than actually needed. Even if some workers are withdrawn, total production does not fall. This indicates that the extra workers contribute zero marginal productivity.

Step 3 — Relevance to agriculture in India:
This situation is common in Indian agriculture, where a large number of family members work on small farms. The land does not require so many workers, but they remain engaged, leading to hidden or "disguised" unemployment.

Step 4 — Conclusion:
Hence, when the marginal productivity of agricultural labour is zero, the situation is called disguised employment.

Final Answer:
The correct option is (D) : Disguised employment.