Q.

Which type of unemployment is most prevalent in rural areas?


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a

Disguised Unemployment

b

Technical Unemployment

c

Structural Unemployment

d

Cyclical Unemployment 

answer is A.

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Detailed Solution

Disguised unemployment is most prevalent in rural areas.
In a situation where it appears as if people are employed, but in reality, their work does not add to the productivity of the job; in other words, even if they were not working, the effect on national income would be the same. This is most prevalent in rural areas, especially in agriculture. For example, if a farmer has four sons and the farm needs the work of only three people, the work of two people working on the farm is unemployed, although they may seem to be working. This is what is known as “disguised unemployment.”
 
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Which type of unemployment is most prevalent in rural areas?