Which of the following are true of disguised unemployment ? I. It represents potential savings. II. The…
Disguised unemployment means labour can be withdrawn with little lost output and can represent potential saving if subsistence resources are mobilised. Family sharing can…
Choose your answer
Which of the following are true of disguised unemployment ?
I. It represents potential savings.
II. The marginal productivity of labour is zero or extremely low.
III. It is due to the existence of joint family system.
IV. It is confined to the rural areas.
Answer and explanation
Correct answer C
Disguised unemployment means labour can be withdrawn with little lost output and can represent potential saving if subsistence resources are mobilised. Family sharing can support it in the traditional agrarian account; it is not confined to rural areas. ThusI,II,III is intended, while the joint-family claim is a contributing institution rather than a universal necessary cause.
Practice for these exams
-
UGC NET Economics