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Q.

The ____ unemployment is a situation when a person seems employed but his presence or absence has no effect on the total production.


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Detailed Solution

In disguised unemployment, a person may seem employed, but he is working less than his full potential. For example, in urban areas, many family members operate one shop, but a maximum of two people can use the shop. The rest of the members don’t have any impact on the functioning. The same happens in rural areas, where more people are working on a farm, and the excess people have no impact on the total production.
 
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