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Question

What is meant by disguised unemployment? Give any two suggestions to reduce it.


Solution

1- Disguised unemployment is a kind of unemployment in which some people look like being employed but are actually not employed fully. This situation is also known as Hidden Unemployment.

2-  Disguised unemployment means that there are more people engaged in agriculture than are actually required and as such their withdrawal from land will not lower production. To remove this lot of people from agricultural sector should be shifted to work elsewhere. Now, the incomes of people who take up other work would increase the family income without reducing the agricultural production.
3- Disguised unemployment in urban areas implies that more people are involved in family business/ shops than required.

4- Disguised unemployment in rural areas e.g. whole family of a farmer is engaged in farming. Whereas if we remove one or two members of the family to other jobs, then also production of the farm remains the same e.g. suppose three brothers are running a shop and if one brother is withdrawn from the shop and output/sales of that shop remains unaffected.


Economics

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