WBCS.LIVE practice question

What type of unemployment is commonly seen in the agricultural sector of India?

Solve this multiple-choice question and check the correct answer with its explanation below.

Answer options

  1. Structural Unemployment
  2. Frictional Unemployment
  3. Disguised Unemployment
  4. Cyclic Unemployment

Correct answer and explanation

Correct answer: Disguised Unemployment

Explanation: āœ… Correct Answer: C) Disguised Unemployment šŸ“š Explanation: Disguised unemployment occurs when more people are working on a piece of land than are actually required. In this situation, the marginal productivity of the extra labor is zero, meaning their removal would not affect total output. It is a major characteristic of rural India, where landholdings are small and family members lack alternative employment.