Q: 92 (IAS/2013)
question_subject:
Economics
question_exam:
IAS
stats:
0,148,89,25,28,148,36
keywords:
{'disguised unemployment': [0, 0, 0, 1], 'labour': [6, 0, 8, 23], 'alternative employment': [0, 0, 1, 1], 'productivity': [0, 0, 0, 1], 'workers': [2, 1, 6, 18], 'marginal productivity': [0, 0, 0, 1]}
Disguised unemployment refers to a situation where a larger number of people are engaged in a particular activity or sector than is actually required. It is characterized by the presence of surplus labor that does not contribute significantly to the total output. In disguised unemployment, the marginal productivity of labor is very low or close to zero, meaning that removing some workers from the activity or sector would not result in a decrease in overall output. Therefore, the correct statement is:
Marginal productivity of labor is zero.