Question

You are a factory owner and have given employment to 400 workers. If 10 workers are dismissed by you without loss of production then this situation will be described as ______

Options

• structural unemployment

• disguised unemployment

• seasonal unemployment

• casual unemployment

Answer 1

You are a factory owner and have given employment to 400 workers. If 10 workers are dismissed by you without loss of production then this situation will be described as disguised unemployment

Explanation:

Disguised unemployment occurs when labor's marginal physical production is zero. or it might be bad at times. The following are some key characteristics of disguised unemployment:

1. Labor's marginal physical productivity is zero.
2. Wage-earners are experiencing hidden unemployment.
3. Uncovering hidden unemployment is difficult.

As a result, the situation described above is one of Disguised Unemployment.