Disguised unemployment generally means
Reviewed by Dalvoy
UPSC Civil Services preparation
- A(a) large number of people remain unemployed
- B(b) alternative employment is not available
- C(c) marginal productivity of labour is zeroCorrect
- D(d) productivity of workers is low
Explanation
Disguised unemployment refers to a situation where people are employed but are not contributing to the production process effectively. This happens when more people are engaged in a task than are actually needed. The marginal productivity of labour, which is the additional output generated by employing one more worker, becomes zero in such cases. Removing some workers wouldn't decrease the total output.
Option A: (a) large number of people remain unemployed - This describes general unemployment, not disguised unemployment. General unemployment means people are actively seeking work but cannot find it.
Option B: (b) alternative employment is not available - Lack of alternative employment contributes to unemployment generally, but doesn't define disguised unemployment.
Option C: (c) marginal productivity of labour is zero - Correct. This is the defining characteristic of disguised unemployment.
Option D: (d) productivity of workers is low - While disguised unemployment often *results* in low productivity, low productivity itself isn't the definition of disguised unemployment. It's the zero *marginal* productivity that's key.

Related questions
More UPSC Prelims practice from the same subject and topic.
- Prelims 2013GS1economy
Which of the following constitute Capital Account? 1. Foreign Loans 2. Foreign Direct Investment 3. Private Remittances 4. Portfolio Investment Select the correct answer using the codes given below.
- Prelims 2013GS1economy
Consider the following statements : 1. Inflation benefits the debtors. 2. Inflation benefits the bond-holders. Which of the statements given above is/are correct?
- Prelims 2013GS1economy
A rise in general level of prices may be caused by
- Prelims 2013GS1economy
Supply of money remaining the same when there is an increase in demand for money, there will be
- Prelims 2013GS1economy
Economic growth in country X will necessarily have to occur if
- Prelims 2013GS1economy
The national income of a country for a given period is equal to the