Underemployment: Also known as disguised unemployment

Underemployment is a situation where individuals are employed but are not able to utilize their full potential or skills in their current job. This can happen when someone is working in a low-paying job that requires fewer skills than they possess or when they are working part-time instead of full-time. Underemployment can also happen when someone is overqualified for their position and is not able to find a job that matches their skills and experience.

Disguised Unemployment

Disguised unemployment is a type of underemployment where individuals are employed but their work is not actually contributing to the overall productivity of the economy. In disguised unemployment, workers are employed but their contribution to the economy is negligible. This can happen in situations where there are too many workers in a particular sector or where the level of technology is low, and the workers are not able to use their skills effectively.

For example, in a farming community, if there are too many workers on a farm, some of them may not be contributing to the overall productivity of the farm. They may be doing work that is not really necessary or could be done by fewer people. This type of employment is known as disguised unemployment because the workers are not actually contributing to the economy even though they are employed.

Conclusion

Underemployment and disguised unemployment are significant issues that can have a negative impact on the economy. Workers who are not able to utilize their full potential or skills may not be as productive as they could be, which can lead to lower economic growth and development. It is important for policymakers to address these issues and create policies that can help individuals find jobs that match their skills and experience, and that contribute to the overall productivity of the economy.

If the definition of disguised unemployment is "the situation when people are apparently working but all of them are made to work less than their potential is called disguised unemployment." then the correct answer should be option C.