Question

Identify the reason for underemployment.

• A. Working less than their capacity
• B. Lack of interest towards work
• C. Low payment of wages
• D. Laziness

Answer 1

The correct option is A Working less than their capacity

If there are more people in agriculture than necessary, production will not be affected even if some people are moved out. This is the situation of underemployment, where people are apparently employed but all of them are made to work less than their potential. This kind of underemployment remains hidden in contrast to the situation of someone who does not have a job and is clearly unemployed. Hence, it is also known as disguised unemployment.