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Saturday, 30 May 2015

What do you mean by disguised unemployment

What do you mean by disguised
unemployment? State an example. 

Answer: It is the situation in which an individual appears to be employed, but he does not add to the productivity. 

That is, the productivity would remain
the same even in his absence. e.g. A family has a farming land where the work requires service of  four persons but all the nine members of the family work
there. 

Even if five persons are withdraw, there is no reduction in output. Thus these five persons are said to be disguised or hidden employed.

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