What is disguised unemployment?

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It is a state in which a person is willing and able to work at prevailing wages but his productivity is very high.

It is a state in which a person is willing and able to work at prevailing wages , but his productivity is zero.

It is a state in which a person is willing and able to work at prevailing wages but his productivity is low.

It is a state in which a person has to work only for a few months in a year.

answer is B.

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Detailed Solution

Disguised unemployment is the state in which a person is able and willing to work at any prevailing wage, but their productivity is zero. When people are working to their full ability, all of them are made to work less than their potential. This is most prevalent in rural areas, where people only practise farming and need labourers. When a farm only needs three workers, but five labourers are working on it, instead, the two are said to be in this situation of unemployment. From their point of view, they are working, but their full potential is not being accessed.

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