Disguised Unemployment Concept

Disguised unemployment occurs when more people are employed in a job than are actually needed, and the marginal productivity of labour (the additional output produced by one additional worker) is zero or negative. This is common in agricultural sectors where family members work but don't actually contribute to additional output. Option (a) describes general unemployment. Option (b) describes structural unemployment. Option (d) describes low productivity but not specifically disguised unemployment. Disguised unemployment is specifically characterized by zero marginal productivity of labour. > KEY POINT: Disguised unemployment = Excess workers with zero marginal productivity (invisible unemployment in family farms). Answer: (c).