Question

Identify the correct statements from the following:

1. Seasonal unemployment is caused due to non-availability of subsidiary or alternative occupations in rural areas.
2. Unemployed people can also contribute to country’s production.
3. A situation wherein more people are engaged in an economic activity than what is actually required is termed disguised unemployment.

Options

• Only I

• Only III

• II and III

• I and III

Answer 1

I and III

Explanation:

In rural areas agriculture is a seasonal occupation, and many workers do not find work outside the agricultural season. Disguised unemployment refers to a situation where more people are engaged in an economic activity than what is actually required for production, meaning some workers’ marginal productivity is zero they are employed but adding no extra output.