Disguised unemployment in India is mainly related to which of the following areas or sectors?
1. agricultural sector
2. rural area
3. factory sector
4. urban area
- A1 and 2
- B1 and 3
- C2 and 4
- D3 and 4
Solution & Step-by-step Explanation
Disguised unemployment is a phenomenon where more people are employed in an activity than are actually needed (marginal productivity of labor is zero). In India, this is heavily prevalent in the overcrowded agricultural sector and across rural areas where farming absorbs extra family members due to a lack of structural alternatives.