Question : Under which type of unemployment, a person contributes less than their capability?
Option 1: Frictional unemployment
Option 2: Disguised unemployment
Option 3: Compulsory unemployment
Option 4: Cyclical unemployment
Correct Answer: Disguised unemployment
Solution : The correct option is Disguised unemployment .
When someone appears to be employed yet their contribution to the overall output is neither necessary nor useful, it is referred to as disguised unemployment. It is a type of underemployment in which there are more workers than are required for a task or occupation to be carried out efficiently.
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