Multiple Choice Questions on In an economic activity lsquo Marginal Productivity of Labour rsquo becomes zero even though labour ........... for UPSC Civil Services Examination (General Studies) Preparation

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Multiple Choice Questions

In an economic activity lsquo Marginal Productivity of Labour rsquo becomes zero even though labour ...........

Economic Affairs Employment related Issues
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    In an economic activity, ‘Marginal Productivity of Labour’ becomes zero even though labour is working. This signifies

    Frictional Unemployment

    Incorrect Answer

    Disguised Unemployment

    Correct Answer

    Cyclical Unemployment

    Incorrect Answer

    Voluntary Unemployment

    Incorrect Answer
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    Explanation:

    Disguised Unemployment

    • Disguised unemployment occurs when part of the labour force is either left without jobs or operates redundantly, such as the productivity of the workforce is effectively zero.
    • It is unemployment which has no impact on aggregate production.

    By: Vishal
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