Question

Choose one correct statement from the following:
Underemployment occurs —
(a) when people are not willing to work.
(b) when people are working slowly.
(c) when people are working less than what they are capable of doing.
(d) when people are not paid for their jobs.

Answer 1

Answer:

(c) when people are working less than what they are capable of doing.

Explanation:

Answer 2

Answer:

Underemployment occurs when people are working less than what they are capable of doing. (Option C)

Explanation:

Underemployment is the situation when a person settles for or is forced to settle for work for which they are overqualified. Simply put, underemployment is the underutilization of a laborer’s true potential and capacity.

Understanding underemployment helps us realize how well the labor force is being used in an economy.