Indian Economic Development: Employment – Growth, Informalisation and Other Issues · Class 12 · CBSE · Commerce Economics
In a village, six family members work on a small farm. If two members stop working, the farm's total output remains unchanged. This situation illustr…
Practice question from Indian Economic Development: Employment – Growth, Informalisation and Other Issues (Class 12 · CBSE · Commerce Economics), with the correct answer and a step-by-step solution.
easy · MCQ · Q-39DAC7
In a village, six family members work on a small farm. If two members stop working, the farm's total output remains unchanged. This situation illustrates:
- A.Open unemployment
- B.Disguised unemploymentCorrect answer
- C.Educated unemployment
- D.Structural unemployment
Solution
Disguised unemployment exists when more workers are engaged in an activity than are actually required. The withdrawal of some workers without any fall in output shows that their marginal productivity is zero.
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