Consider the following:
1. Disguised unemployment is a phenomenon wherein more people are employed than needed.
2. Disguised unemployment does not affect aggregate economic output.

Which of the statements given above is/are correct ?
(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2

Question

Consider the following:
1. Disguised unemployment is a phenomenon wherein more people are employed than needed.
2. Disguised unemployment does not affect aggregate economic output.

Which of the statements given above is/are correct ?
(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2

ONLiNE UPSC · Accepted Answer

Statement 1 is correct : Disguised unemployment refers to a situation where more people are employed than actually needed for a task, such as in agriculture or informal sectors in India.

Statement 2 is correct : Disguised unemployment does not affect aggregate economic output because the surplus workers do not contribute significantly to productivity.

Employment and Unemployment

Disguised Unemployment

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M Question 1	⏱ 0
Consider the following: 1. Disguised unemployment is a phenomenon wherein more people are employed than needed. 2. Disguised unemployment does not affect aggregate economic output. Which of the statements given above is/are correct ? (a) 1 only (b) 2 only (c) Both 1 and 2 (d) Neither 1 nor 2