Question

Define disguised unemployment. State its implications on output and employment in a country.

Hint:

Disguised unemployment indicates inefficient labor utilization, reducing overall productivity and GDP.

Answer 1

Definition: Disguised unemployment refers to a situation where more people are employed than necessary, resulting in zero marginal productivity. 
Implications: Reduced efficiency in labor utilization. Lowers potential GDP by keeping excess workers in low-productive sectors like agriculture.