Question

In which of the following type of unemployment is the marginal productivity of the worker zero?

Options

• Structural unemplyment

• Involuntary unemployment

• Seasonal unemployment

• Disguised unemployment

Answer 1

Disguised unemployment

Explanation:

This occurs when more people are engaged in an economic activity than actually required, so the extra workers do not contribute to additional output. Hence, their marginal productivity is zero. Disguised unemployment is common in agriculture and rural areas where surplus labour is hidden because people work but do not add to productivity.