Meaning of disguised unemployment — UPSC Prelims PYQ 2013
Disguised unemployment generally means
- large number of people remain unemployed
- alternative employment is not available
- marginal productivity of labour is zero
- productivity of workers is low
Explanation
Option (c) is correct
- Disguised unemployment occurs when more people are employed in a task than necessary. If some workers are removed, the total output does not decrease. This implies their marginal productivity is zero. It is common in agriculture and informal sectors where surplus labor is used but does not contribute to additional productivity
- Imagine family runs a small farm requiring 5 workers to cultivate the land efficiently. However, 8 family members are working on the farm. The extra 3 members, do not add to the farm’s output. If 3 leave the farm to take up another job, the total farm output remains unchanged, illustrating that their marginal productivity is zero.
Answer: (c) marginal productivity of labour is zero; Difficulty Level: Easy
