NECO 2009 Economics · Question 16
Disguised unemployment is the same thing as
Options
- A.residual unemployment
- B.seasonal unemployment
- C.structural unemployment
- D.under-employment
- E.voluntary unemployment
Answer: D. under-employment
Explanation written with AI and checked against the answer key
Step 1: Analyze the question The question asks which type of unemployment is the same as disguised unemployment.
Step 2: Explain the concept Disguised unemployment happens when more workers are engaged in a job than are actually needed to produce the output. Some of them add nothing to total output, so if they were removed, production would not fall. It is common in the agricultural sector of developing countries like Nigeria, where many family members work on a small farm that needs only a few hands. These workers appear employed, but they are not fully or productively utilized. This is why it is also called under-employment.
Step 3: Evaluate the options
- A. Residual unemployment: Unemployment of people who cannot work because of physical or mental disability or old age. This is not the same thing.
- B. Seasonal unemployment: Unemployment at certain times of the year when the job is not in season, such as farm work in the dry season. This is not the same thing.
- C. Structural unemployment: Caused by changes in the structure of the economy, such as the decline of an industry or a mismatch of skills. This is not the same thing.
- D. Under-employment: Workers are engaged but not fully utilized, or they contribute little or nothing to output. This matches disguised unemployment.
- E. Voluntary unemployment: People choose not to work at the existing wage. This is not the same thing.
Step 4: Answer The correct option is D. under-employment.
Exam tip: Think "disguised = hidden." The person looks employed but is underused, so link disguised unemployment with under-employment. Also remember the typical example: too many people working on a small family farm.
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