Hussain shaikh employed seven workers less than the usual number of workers on his farm, in spite of this, output remain the same find the concept
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Answer:
if he had x workers before each worker would have to do 1/x of the output
if he deployed x-7 workers then each other have to do 1/x-7 of the work to get the same output
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The concept of "Disguised Unemployment" can be identified in the given scenario
Explanation:
Case:Hussain shaikh employed 7 workers,less than the usual workers but the work was done on time and output was same
- In the given case,it has been stated that less number of workers were hired thatn the usual by Hussain shaikh and still the output came out to be the same.
- This kind of scenario points towards the presence of a concept in Economics called as "Disguised Unemployment".
- Disguised Unemployment is a situation in which more number of workers or employees are hired to do a work which can be done with a lesser amount of work force.
- For example,A landlord hires 10 farmers to work in his field and harvest wheat.The 10 farmers work and harvest the whole field.Now,if the landlord had hired only 7 farmers to harvest the field,the same work would have been done in the same amount of time and would have costed lesser than paying wages to 10 farmers.
- Those 3 farmers didn't contribute in the workforce and thus,were disguised unemployed.
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