Assertion (A): Disguised unemployment is hidden in contrast to someone who does not have a job and is clearly visible as unemployed. Everyone is working, no one is fully employed.

Reason (R): In fact, the labour effort is divided.

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Both (A) and (R) are true and (R) is the correct explanation of (A).

Both (A) and (R) are true and (R) is not the correct explanation of (A).

(A) is correct but (R) is wrong.

(R) is correct but (A) is wrong.

answer is A.

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Detailed Solution

Both (A) and (R) are true and (R) is the correct explanation of (A).
Disguised unemployment is a certain type of unemployment where people are employed, but their capacities are not fully utilised. Let's assume there is a family of five in a rural area and all the members are engaged on the farm. However, for the production, only two people are enough. The other three are underemployed as, although they are working, they are not contributing to the production. The reason behind this type of situation is that the labour effort just ends up being divided.

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