Multiple choice

A situation of employment in which a person is apparently employed but his contribution to the production is almost nil, is called

  1. structural

  2. chronic

  3. disguised

  4. cyclical

Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Disguised unemployment occurs when more people are employed than actually needed, with marginal productivity being zero or near-zero. This is common in agricultural sectors where family members work on farms without significantly increasing output. Structural unemployment is from skill mismatches, chronic unemployment persists long-term, and cyclical unemployment varies with business cycles.