Multiple choice

The type of unemployment mostly found in India can be characterised as

  1. disguised

  2. cyclical

  3. structural

  4. frictional

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

Disguised unemployment is the most prevalent type in India, especially in the agricultural sector where more people are employed than actually required. In this situation, marginal productivity of labor is zero or negative - removing some workers doesn't reduce output. This occurs due to surplus labor, lack of alternative employment, and the pressure of population on limited resources.