Q.

Which of the following is true for disguised unemployment?


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a

When individuals are unemployed for more than 100 days in a year.

b

If individuals become unemployed because a country starts using new technology.

c

If individuals become unemployed because they are changing their jobs.

d

When individuals are engaged in some work, however, they work less than their potential. 

answer is D.

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Detailed Solution

When individuals are engaged in some work, however, they work less than their potential is true for disguised unemployment.
Disguised unemployment is when the number of workers employed exceeds what is required. It is commonly seen in the agricultural sector. One of the main reasons for disguised unemployment is high population growth, where people cannot find jobs that match their skills. Due to this type of unemployment, the Gross Domestic Product of a country does not increase, which could have increased if this surplus labour force had been appropriately employed. The type of unemployment where workers can find jobs only during a particular season is known as seasonal unemployment.
 
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Which of the following is true for disguised unemployment?