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Disguised unemployment is
- a)When more people are engaged in production than actually required
- b)Educated people are unemployed
- c)employment for only 7-8 months and for the remaining period labourers remains unemployed
- d)Blue-collar unemployment
Correct answer is option 'A'. Can you explain this answer?
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Disguised unemployment isa)When more people are engaged in production ...
Disguised unemployment refers to a situation where more people are engaged in a particular production process than actually required. In such a scenario, removing some workers would not lead to a decrease in output. Disguised unemployment is typically found in the agricultural sector, where there is a large surplus of labor.
Causes of disguised unemployment
There are several reasons why disguised unemployment can occur:
1. Lack of alternative employment opportunities: In rural areas, there may be limited job opportunities available, and hence, people may engage in agricultural work even if they are not needed.
2. Low productivity: Due to the use of outdated technology and farming techniques, the productivity of labor may be low, leading to the need for more workers than necessary.
3. Fragmentation of landholdings: In many parts of the world, land is divided into small plots, which makes it difficult to achieve economies of scale. As a result, many people work on small plots of land, even if they are not needed.
Effects of disguised unemployment
Disguised unemployment can have several negative effects:
1. Low wages: When there is an oversupply of labor, wages tend to be low, which can lead to poverty and income inequality.
2. Low productivity: Disguised unemployment can reduce the productivity of the agricultural sector, as workers may not be fully utilized.
3. Wastage of resources: When more people are engaged in a particular production process than actually required, it can lead to a wastage of resources, such as land, water, and fertilizer.
Conclusion
Disguised unemployment is a common phenomenon in many parts of the world, particularly in rural areas. It can have several negative effects on the economy, such as low wages, low productivity, and wastage of resources. Policymakers need to address this issue by creating alternative job opportunities and improving the productivity of the agricultural sector.
Causes of disguised unemployment
There are several reasons why disguised unemployment can occur:
1. Lack of alternative employment opportunities: In rural areas, there may be limited job opportunities available, and hence, people may engage in agricultural work even if they are not needed.
2. Low productivity: Due to the use of outdated technology and farming techniques, the productivity of labor may be low, leading to the need for more workers than necessary.
3. Fragmentation of landholdings: In many parts of the world, land is divided into small plots, which makes it difficult to achieve economies of scale. As a result, many people work on small plots of land, even if they are not needed.
Effects of disguised unemployment
Disguised unemployment can have several negative effects:
1. Low wages: When there is an oversupply of labor, wages tend to be low, which can lead to poverty and income inequality.
2. Low productivity: Disguised unemployment can reduce the productivity of the agricultural sector, as workers may not be fully utilized.
3. Wastage of resources: When more people are engaged in a particular production process than actually required, it can lead to a wastage of resources, such as land, water, and fertilizer.
Conclusion
Disguised unemployment is a common phenomenon in many parts of the world, particularly in rural areas. It can have several negative effects on the economy, such as low wages, low productivity, and wastage of resources. Policymakers need to address this issue by creating alternative job opportunities and improving the productivity of the agricultural sector.
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Disguised unemployment isa)When more people are engaged in production than actually requiredb)Educated people are unemployedc)employment for only 7-8 months and for the remaining period labourers remains unemployedd)Blue-collar unemploymentCorrect answer is option 'A'. Can you explain this answer?
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