Question

Disguised unemployment can be observed in _____.

• A. rural areas
• B. urban areas
• C. both 1 and 2
• D. factories

Answer 1

The correct option is C both 1 and 2

1:Disguised unemployment exists where part of the labour force is either left without work or is working in a redundant manner where worker's productivity is essentially zero.
2:It is unemployment that does not affect aggregate output. An economy demonstrates disguised unemployment when productivity is low and too many workers are filling too few jobs. It can be observed in rural as well as in urban areas.