Q. Disguised unemployment is said to occur when?

[A] Demand for labour declines compare to its supply for demographic reasons

[B] Demand for labour reduce because of a seasonal swing

[C] More labour is engaged in an occupation than optimally required

[D] Jobs get reduced because of a negative business cycle.

Answer: C

Disguised unemployment is unemployment that does not affect aggregate economic output. It occurs when productivity is low and too many workers are filling too few jobs. It can refer to any part of the population that is not employed at full capacity.


Source: ForumIAS