Question

The terms 'Open Unemployment' and 'Disguised Unemployment' are similar to each other. Defend or refute.

Answer 1

The given statement is refuted. Disguised Unemployment refers to a state in which more people are engaged in work than are really needed. On the other hand, Open Unemployment refers to that economic phenomenon in which persons are able and willing to work at the prevailing wage rate but fail to get work.

So, Open Unemployment is different from Disguised Unemployment. In the case of open unemployment, workers are totally idle. However, in the case of disguised unemployment, workers appear to be working and do not seem to be idling away their time.