Disguised unemployed is?
Correct answer: A. when marginal revenue productivity of labor is zero
- A. when marginal revenue productivity of labor is zero
- B. the same as seasonal unemployment of LDC agricultural
- C. the rigid factor proportions in LDC agriculture and industry
- D. due to capital formation and the level of technology remaining constant.
Explanation
Disguised unemployment exists when some workers add nothing to total output, so their marginal revenue product is zero. Removing such workers would not reduce production, which commonly occurs in surplus-labour agriculture.
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