Disguised unemployment is most likely to exist when:
Correct answer: B. Some workers add little or no extra output
- A. Workers produce more than their firms require
- B. Some workers add little or no extra output
- C. All workers receive wages above market rates
- D. Unemployed people move to another province
Explanation
Disguised unemployment occurs when more workers are engaged than are needed, so removing some workers causes little or no reduction in total output. It is commonly associated with low-productivity agricultural employment in developing economies.
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About Economy of Pakistan
Pakistan's economy is examined through agriculture, industry, services, trade, remittances, employment, population, poverty and regional development. The topic also covers GDP and national income, inflation, fiscal and monetary policy, taxation, public debt, the balance of payments, energy constraints and structural challenges, including the role of the State Bank and development planning.
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