Question

When more people are engaged in a work than required what does it indicate?

• A. Unemployment
• B. Over employment
• C. Disguised employment
• D. Surplus employment

Answer 1

The correct option is C Disguised employment

Disguised unemployment exists where part of the labour force is either left without work or is working in a redundant manner where worker's productivity is essentially zero. It is unemployment that does not affect aggregate output. An economy demonstrates disguised unemployment when productivity is low and too many workers are filling too few jobs.