Multiple choice

Disguised unemployment is observed in

  1. industrial sector

  2. agricultural sector

  3. manufacturing sector

  4. insurance sector

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

Disguised unemployment occurs when more workers are employed than actually required, where marginal productivity of additional workers is zero or very low. This is most commonly observed in the agricultural sector in developing countries where family members appear to be working but are essentially surplus labor. In contrast, industrial and manufacturing sectors typically have clearer productivity measures and cannot sustain disguised unemployment.