UPSC CSE Prelims
Question 30
Disguised unemployment generally means
View correct answer and explanation
Correct answer: C
Correct Option: C
Explanation: Disguised unemployment occurs when excess workers are engaged but withdrawing some does not reduce output: their marginal product is approximately zero.
Option-wise Analysis:
A: Incorrect - Wrong: open unemployment involves people not engaged in work, rather than surplus labour appearing employed.
B: Incorrect - Wrong: unavailable alternative jobs can contribute, but do not define disguised unemployment.
C: Correct - Correct: the additional worker contributes virtually no extra output.
D: Incorrect - Wrong: low average productivity is not the exact zero-marginal-product criterion.