Disguised unemployment.

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Q. Disguised unemployment.

Andhra Pradesh BieapBIEAP AP Intermediate (2nd Year) Commerce Board 2023Subjective· 2mImportance★★★★★est

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Disguised unemployment is hidden unemployment where more workers are employed than needed, so their marginal product is zero - removing some does not reduce output. It is common in Indian agriculture on small family farms.

This is a 2-mark short note in AP Intermediate 2nd year Economics, part of the agriculture theme, treated in line with the NCERT/CBSE curriculum.

Meaning. Disguised unemployment (also called hidden unemployment) is a situation in which a larger number of persons are employed in a work than is really required to do it. Here the extra workers appear to be employed, but their contribution to output is nil - their marginal productivity is zero or almost zero. If such surplus workers are withdrawn, the total production remains unchanged. This type of unemployment is widespread in Indian agriculture, where several members of a farming family work on a small piece of land …

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Same / Similar Concept — real previous-year questions on the same or a closely similar concept, not this exact question.

CBSE 2025Set MARCH1 markMCQ
$Q. After independence, what are the changes taking place in the contribution of agriculture sector to the national income of the country?$
(a) Stagnant
(b) Increases at slow rate
(c) Decreases
(d) Increases at high rate
›Reveal solutionSolution

Agriculture's share in national income has been decreasing since independence — option (c).

At the time of independence agriculture contributed more than half of India's national income. As the country developed, the industrial and service sectors grew faster, so the share of agriculture in national income steadily declined to well under one-fifth today. This is a normal feature of structural change in …

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CBSE 2025Set MARCH1 mark
$Q. Which sector provides maximum employment in India?$
›Reveal solutionSolution

The agriculture sector provides the maximum employment in India.

Despite its declining share in national income, the agriculture (primary) sector still gives employment to the largest share of India's workforce — a majority of the rural population depends directly or indirectly on farming and allied activities for their livelihood. This mismatch — a large workforc …

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CBSE 2020Set MARCH1 markMCQ
$Q. How much employment was provided by agriculture sector in the year 2014-15?$
(a) 24%
(b) 26%
(c) 49%
(d) 72%
›Reveal solutionSolution

Agriculture provided about 49% of employment in 2014-15 — option (c).

A key point in the chapter on the role of agriculture is the mismatch between agriculture's shrinking contribution to national income and its still very large share in employment. Around 2014-15, agriculture and allied activities engaged roughly 49% of India's total workforce, even though the sector's share in GDP had fallen well …

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Q.Disguised unemployment.

Concept understanding — Role of Agriculture in the Indian Economy

Q.Disguised unemployment.

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