Question:
Define disguised unemployment. State its implications on output and employment in a country.
Define disguised unemployment. State its implications on output and employment in a country.
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Disguised unemployment reflects inefficient labor utilization, limiting productivity and economic growth.
Updated On: Jan 31, 2025
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Solution and Explanation
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.
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