Question

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

Hint:

Disguised unemployment reflects inefficient labor utilization, limiting productivity and economic growth.

Answer 1

Definition: Disguised unemployment refers to a situation where more people are employed than required, resulting in zero or negligible marginal productivity. 
Implications: Inefficient Labor Use: Resources are underutilized, leading to lower productivity. 
Stagnant Economic Growth: Excess labor in low-productive sectors like agriculture fails to contribute effectively to GDP.