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Question

What term is associated with the type of unemployment in which more number of people work than actually needed?

A
Overemployment
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B
Underemployment
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C
Disguised unemployment
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D
Seasonal unemployment
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Solution

The correct option is C Disguised unemployment
Disguised unemployment is a type of unemployment that does not affect the aggregate economic output. It occurs when productivity is low and too many workers fill up too few jobs. It can refer to any part of the population that is not employed at full capacity.

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