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  9. Q8

HPSC HCS 2017 · Question 8 of 100

Disguised unemployment is said to occur:

Indian Economy

  1. ADemand for labour declines compared to its supply for demographic reasons
  2. BDemand for labour reduces because of a seasonal swing.
  3. CMore labour is engaged in an occupation than optimally required.Correct
  4. DJobs get reduced because of a negative business cycle

Answer: C. More labour is engaged in an occupation than optimally required.

Explanation

Disguised (hidden) unemployment occurs when more labour is engaged in an occupation than is optimally required, so marginal productivity is near zero.

Source: Question text: HPSC HCS (Ex.Br.) Prelims GS Paper-I held 31-Mar-2019 (Drishti IAS official-paper transcription; cross-checked with Abhimanu IAS Set-D solved paper). Answers: official HPSC Series-D answer key.

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