Question:
Under which type of unemployment does the marginal productivity of worker is zero or closer to zero?
(1) Disguised unemployment
(2) Involuntary unemployment
(3) Seasonal unemployment
(4) Structural unemployment
(5) Frictional unemployment
Correct Answer:
(1)
Answer Explanation:
Disguised unemployment (or hidden unemployment) occurs when more people are employed in a job than are actually needed to produce the output (common in family agriculture). Because there is a surplus of labor, removing one worker would not decrease total output, meaning their Marginal Productivity is essentially zero.
Topic: Unemployment Year: 2020
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