Choose whether the statement is true/false:

Disguised unemployment is the situation where a person considers himself employed but is actually not working.

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Detailed Solution

The above statement is true.
Disguised unemployment is the situation where a person considers himself employed but is actually not working.
When people appear to be employed but are forced to work less than they are capable of, it is said to be underemployment, also known as disguised unemployment. In this situation, the person believes he is employed but is not. This type of unemployment is common in rural areas where agriculture is the primary source of income. For example, when five individuals are working on a piece of property when only three people are needed, the two extra workers are said to be experiencing disguised unemployment. Painters, plumbers, and electricians who cannot find work daily and work far less than they should are examples of disguised unemployment in cities and urban areas.

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