question_answer

What do you understand by disguised unemployment? Explain with an example each from the urban and rural areas.

Answer:

Disguised Unemployment: Refer to pt. 16 (Important Terms and Concepts).

(a) Disguised unemployment means that there are more people engaged in agriculture than are actually required and as such their withdrawal from land will not lower production. To remove this lot of people from agricultural sector should be shifted to work elsewhere. Now, the incomes of people who take up other work would increase the family income without reducing the agricultural production.

(b) Disguised unemployment in urban areas implies that more people are involved in family business/shops than required.