Disguised unemployment refers to

Correct option is A

Correct Answer:A. Employment of more persons in a job which can be accomplished by a lesser number of persons

• Disguised unemployment occurs when more people are employed in a task or job than are actually needed, leading to inefficiency.

• The workers in these situations are technically employed, but their contribution to production is either minimal or unnecessary. In other words, they could be removed from the job without any loss in output.

• Common examples include:

  • Agricultural sector in India, where many family members work on farms, but the land or work can be managed by fewer people.

  • Small family-owned businesses where too many workers are employed, reducing productivity.

• Effects of Disguised Unemployment:

  • Leads to underutilization of labor and economic inefficiency.

  • It prevents labor from being shifted to more productive sectors of the economy.

• Key difference from open unemployment:

  • Disguised unemployment involves people having jobs, while open unemployment refers to people who are actively seeking work but cannot find any.