Disguised unemployment generally means

Answer: The correct answer is Marginal productivity of labour is zero. 

Disguised unemployment is a situation where more people are working in a job than actually needed. Even if some of them stop working, the total output does not change. This means that their contribution is almost zero, even though they appear to be employed. 

It is commonly seen in sectors like agriculture, where many family members work on the same piece of land without increasing productivity. In simple terms, it is hidden unemployment where people seem busy but are not fully utilized.

Reasons for Disguised Unemployment

There are several factors that lead to the existence of disguised unemployment:

• High population pressure: A rapidly growing population increases the number of people looking for work, especially in rural areas. This leads to excess labor in limited jobs.
• Dependence on agriculture: In rural areas, agriculture is often the main source of income. Since land is limited, many family members work on the same land even when they are not all needed.
• Seasonal nature of work: Agricultural work is not available throughout the year. During off-seasons, people remain underemployed or do very little productive work.
• Poverty and lack of capital: Poor people often do not have enough money to start their own businesses or invest in better opportunities. This forces them to depend on limited resources and share work with others.