Question

What is disguised unemployment?

• A. Workers are highly skilled but unemployed.
• B. More people are employed than required for a job.
• C. Workers shift jobs frequently.
• D. Workers are overpaid.

Answer 1

Answer:

B. More people are employed than required for a job.

Disguised unemployment is when more people are employed than are needed for a job, or when workers are not using their skills to produce goods and services. Disguised unemployment occurs when part of the labour force is either left without jobs or operates redundantly, such as the productivity of the workforce is effectively zero. It is unemployment which has no impact on aggregate production