which of the following statements is true a marginal product of additional unit of labour is zero - Economics - National Income Accounting

Question

which of the following statements is true??
a marginal product of additional unit of labour is zero in case of
disguised unemployment
b in India maximum workforce is engaged in the formal sector
c higher working popular population ratio means lower engagement of
people in economic activities
d in India the growth of employment is commensurate with the growth
of GDP

Ishi · Accepted Answer

Dear Student
Option (a) is correct
" marginal product of additional unit of labour is zero in case of
disguised unemployment"
disguised unemployment means when people are employed but actually
they are not For example- In agriculture sector, where whole family
of 6 members is working on a single piece of land that actually
need 4 members only 4 member can do the same thing that 6 members
are doing so if those 2 members are not there it doesn't affect the
output of that land or they are working but producing nothing So it
seems they are employed but actually they have nothing to do
So we can clearly say under disguised unemployment marginal product
of additional unit of labour is zero

Regards