Question

A situation in which more persons are employed on a job than are optimally required is:
(a) Structural unemployment
(b) Disguised unemployment
(c) Cyclical unemployment
(d) Seasonal unemployment

Answer 1

Answer:

(b) Disguised unemployment

Answer 2

Disguised unemployment is unemployment where more persons are employed on a job than is optimally required.

• Disguised unemployment occurs when productivity is less and workers are more.

• It does not affect aggregate economic output.

• It refers to the part of the population that is unemployed at enough capacity.

• Disguised unemployment does not count in the official unemployment statistics within the national economy.

• Underemployment, illness and disability, and no longer looking for a job come under types of disguised unemployment.

• Disguised unemployment exists in developing countries where a large population creates a surplus in the labor force.