Question 21 of 25
Q.How do you term people employed in excess of the requirements ?
(a) Full employment
(b) Unemployment
(c) Self-employment
(d) Under employment or Disguised unemployment
Puducherry TnboardTamil Nadu HSC First Year (DGE) Commerce Board 2025MCQ· 1mImportance★★★★★
84% · 21/25 Questions
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Start your 14-day free trial to unlock the full solution →Employing more people than a job requires is called disguised (under) unemployment, so the answer is option (d).
Disguised unemployment (also called under-employment) exists when more persons are engaged in an activity than are actually needed, so that the marginal productivity of the surplus workers is zero or negligible. If these extra workers are withdrawn, total output does not fall.
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