Multiple choice

In ______ unemployment, marginal productivity of labour is zero.

  1. frictional

  2. structural

  3. disguised

  4. chronic
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Disguised unemployment refers to a situation of employment with surplus manpower in which some workers have zero marginal productivity so that their removal will not affect the volume of total output. For example, a certain piece of work could have been managed by 2 persons instead of 3, so the marginal productivity of that 3rd person is zero.

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