Under which type of unemploymnet a person contributes less than their capability?
Show answer & explanation
Correct answer: B
Explanation
The correct answer is option 3 i.e. Disguised unemployment.
- Disguised unemployment occurs when individuals contribute less than their full capability to a task or job, despite being officially employed.
- This situation often arises in sectors where there is excess labor or underutilization of resources, leading to inefficiencies in productivity. Workers may appear employed but their contributions do not significantly impact output, highlighting a mismatch between labor supply and demand.