Q.Read the following statements carefully : Statement 1 : As per the National Sample Survey Organization (NSSO), unemployment is a situation in which all those who, owing to lack of work, are not working, but are seeking work from prospective employers. They express their willingness/availability to work under the prevailing conditions of work and remuneration. Statement 2 : Disguised Unemployment is generally a massive problem in a highly populated country like India. In the light of the given statements, choose the correct alternative from the following : (A) Statement 1 is true and Statement 2 is false. (B) Statement 1 is false and Statement 2 is true. (C) Both Statements 1 and 2 are true. (D) Both Statements 1 and 2 are false.

India's unemployment problem is indeed multifaceted, and the seasonal variation in work availability is one genuine feature of the labour market. Both statements are true, but the Reason describes only a single facet and does not, on its own, explain the multifaceted nature of the problem — so the answer is (B).

Both statements are factually correct: Statement 1 accurately defines unemployment as per NSSO, and Statement 2 correctly identifies disguised unemployment as a major issue in a populous country like India.

Disguised unemployment is found more in the agriculture sector.

In Karnataka 1st PUC Economics, disguised unemployment refers to a situation where the number of workers on a job exceeds what is actually required, so that some of them contribute nothing extra to output. In India this is most visible in agriculture, where many family members work on the same small holding even thou …

Disguised unemployment is when more workers are engaged in a job than are actually required, so some add virtually nothing to output even while appearing employed.

Disguised unemployment describes a situation — very common in Indian agriculture on small family-run farms — where the number of workers engaged in a task far exceeds what is genuinely needed to do it. If some of these extra workers were withdrawn, total output would not fall, because their marginal productivity is zero (or close to it); they are 'hidden' unemployed, since on the surface everyone looks occupied. This differs from seasonal unemployment (workers idle only in certain seasons), underemployment (a broader/relate …

Disguised unemployment exists when workers appear employed but contribute little or nothing to output — common on family farms in India.

In Indian agriculture, land holdings are often small and farming is largely a family enterprise. All family members, whether genuinely needed or not, tend to work on the family farm because alternative job opportunities are scarce. As a result, far more people are engaged on the land than the work actually requires. If some of these family members were withdrawn, total farm output would not fall — their marginal physical product is effectively zero. This hidden form of unemployment, where workers are nominally "employed" but add nothing extra to productio …