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Q.

[[1]] activity in the primary sector is prone to disguised unemployment.


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Detailed Solution

Agricultural activity in the primary sector is prone to disguised unemployment.
The primary sector is the largest employer but contributes the least to India's GDP due to unemployment in this sector. A land requiring a maximum of three labourers for production activities is hiring six. Due to additional labourers hired, the labour effort is getting divided, and all the workers employed are performing tasks below their potential. Although they all appear to be employed, they are doing less work than their capacity and earning less than what they could have earned by working at their full capacity. Such disguised unemployment is more prevalent in the agricultural activity of the primary sector.
 
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[[1]] activity in the primary sector is prone to disguised unemployment.