Question 46
Labour MarketDisguised unemployment
- A.exists when manpower is not being utilized efficiently
- B.calls for the implementation of five-year plans
- C.can be eliminated if the press is free
- D.can be eliminated if the capital output ratio is increased
- E.is a statistical artifact with no economic meaning.
Show the answer and explanation
Answer: A (exists when manpower is not being utilized efficiently)
Explanation
In disguised unemployment more people work at a job than are needed, so some add nothing to output: labour is not used efficiently.