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Question : Which of the following factors does NOT contribute to disguised unemployment?

Option 1: Lack of job opportunities

Option 2: Underutilization of labor

Option 3: Overstaffing in a sector

Option 4: Insufficient capital investment


Team Careers360 25th Jan, 2024
Answer (1)
Team Careers360 27th Jan, 2024

Correct Answer: Insufficient capital investment


Solution : The correct answer is (d) Insufficient capital investment

Disguised unemployment refers to a situation where more people are engaged in a task or job than required, leading to underutilization of labor without a corresponding increase in productivity. It is typically observed in sectors or activities where there is surplus labor, and individuals could be removed from the workforce without affecting overall output. Factors such as lack of job opportunities, underutilization of labor, and overstaffing in a sector can contribute to disguised unemployment, but insufficient capital investment is not directly related to this concept.

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