Question

Disguised unemployment generally exists in __________.

• A. manufacturing sector
• B. agriculture
• C. small scale industries
• D. urban societies

Answer 1

The correct option is B agriculture

Disguised unemployment refers to the employment of a person whose marginal productivity is zero, i.e, he does not contribute anything in the production process. If disguised unemployed people are withdrawn from a particular sector and transferred to other sectors, the productivity of the sector will remain unaffected. Such a condition exists in majorly in the agricultural sector.