The type of unemployment in the agricultural sector of India where more people are employed than required is known as:
- A.disguised unemployment
- B.seasonal unemployment
- C.structural unemployment
- D.marginal unemployment
Correct answer
Explanation
The correct answer is A, disguised unemployment. Disguised unemployment is the situation in which more people work at a job than it actually needs, so taking some of them away would not reduce output at all. Indian agriculture is the standard example: a family holding of two hectares may keep five or six members busy when two could finish the same work, and the extra hands live on a share of the produce without adding to it. Their marginal productivity is close to zero, which is why the unemployment is called hidden or disguised. NCERT's Class 9 economics chapter on people as resource uses this very example. B is wrong because seasonal unemployment means being idle only in certain months, such as between sowing and harvest. C is wrong because structural unemployment comes from a mismatch between the skills workers have and the jobs the economy creates. D is wrong because marginal unemployment is not a standard category of this kind. Exam tip: disguised unemployment means surplus workers with nearly zero marginal productivity.
Practice Questions
View allAccording to the law of diminishing marginal utility, as the amount of a good consumed increases, the marginal utility of that good tends to
- A.improve
- B.diminish
- C.remain constant
- D.first diminish and then improve
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Each extra unit of a good gives a consumer less additional satisfaction than the unit before it, so marginal utility falls as consumption rises.
Read the full explanation →Consider the following statements about impact of tax : 1. A tax is shifted forward to consumers if the demand is inelastic relative to supply. 2. A tax is shifted backward to producers if the supply is relatively more inelastic than demand. Which of the statements given above is/are correct?
- A.1 only
- B.2 only
- C.Both 1 and 2
- D.Neither 1 nor 2
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The burden of a tax falls more heavily on whichever side of the market is less elastic, the side that cannot easily walk away.
Read the full explanation →UBI, as an alternative for subsidies in poverty alleviation, stands for
- A.Union Basic Income
- B.Undefined Basic Income
- C.Unconditional Basic Income
- D.Universal Basic Income
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UBI is the idea of paying every citizen a fixed sum of money regularly, without conditions, in place of a large number of separate subsidies and welfare schemes.
Read the full explanation →Who among the following is the Chairman of the Fourteenth Finance Commission?
- A.C. Rangarajan
- B.Vijay Kelkar
- C.Y. V. Reddy
- D.Rakesh Mohan
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The Fourteenth Finance Commission, set up in 2013 for the award period 2015-2020, was chaired by Y. V. Reddy, a former Governor of the Reserve Bank of India.
Read the full explanation →Why was constitutional amendment needed for introducing GST?
- A.States were not willing to agree with the Union for introduction of GST without amendment in the Constitution.
- B.GST was to be implemented on concurrent base and Article 246 was inadequate for such a case.
- C.The Empowered Committee of Finance Ministers had recommended for constitutional amendment.
- D.The GST Council had recommended for constitutional amendment so that its power enhances.
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GST is levied by the Union and the States together on the same supply, and Article 246, which splits taxing powers between them through separate lists, did not allow such a concurrent tax.
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