Gujarat BoardEnglish MediumSTD 12 CommerceEconomicsUNEMPLOYMENT3 Marks
Question
Explain the concept of disguised unemployment with example.
✓
Answer
Meaning:
When a worker seems to be working or occupied in apparent manner but he is removed from his work, production doesn‘t decrease.
Such type of unemployment is called disguised unemployment.
It is also called hidden unemployment.
The marginal productivity of workers is zero if it is used in another sector also.
There is no change in total productivity.
For this reason, Nercks said disguised unemployment is implied savings.
Example: Suppose in $10$ hectare land, $7$ persons are working and they produce $100$ quintal grains.
If $2$ persons are removed from the work and only $5$ are busy working, the production of grains remain the same. Here $2$ labourers are disguised unemployment.
Their contribution was nil and marginal production was zero.
Need a full question paper?
Generate a complete, print-ready paper with questions like this in minutes — across 16+ boards, with answer keys.