In the context of Indian agriculture, which type of unemployment is most commonly observed due to more workers being engaged on farms than actually required for the existing level of production?

Difficulty: Medium

Correct Answer: Disguised unemployment

Explanation:


Introduction / Context:
Unemployment in economics is classified into different types based on its causes, such as seasonal, disguised, frictional, and structural unemployment. In many developing countries, including India, a special feature of agriculture is that a large number of people work on small farms where their contribution to output is very low or almost zero. This question focuses on identifying the technical term for this phenomenon, which is important for understanding rural poverty and underemployment in the Indian economy.


Given Data / Assumptions:
The sector under consideration is Indian agriculture.There are more workers engaged on farms than are actually required for the existing output.We must identify the correct type of unemployment from the four given options.We assume a basic knowledge of different unemployment types used in economics.


Concept / Approach:
Disguised unemployment, also called hidden unemployment, occurs when more people are employed than necessary for producing a given level of output. If some of these workers were removed, total production would remain the same, which means their marginal productivity is zero. This is very common in Indian agriculture, where family members often share work on small holdings, resulting in underemployment rather than open joblessness. Seasonal unemployment, frictional unemployment, and structural unemployment have different characteristics and are not the best description for this specific situation.


Step-by-Step Solution:
Step 1: Focus on the key phrase that more workers are engaged on farms than actually required.Step 2: Recall that disguised unemployment is defined as a situation where additional workers do not add to total output because there is not enough work for everyone.Step 3: Understand that in such cases, if a few workers leave the farm and work elsewhere, output on the farm will not fall.Step 4: Compare this idea with seasonal unemployment, which occurs when work is available only in certain seasons, such as sowing or harvest time.Step 5: Conclude that the description matches disguised unemployment, which is therefore the correct answer.


Verification / Alternative check:
Standard textbooks on Indian economy clearly state that disguised unemployment is a major problem in rural areas, especially in agriculture. They often give examples of five or six family members working on a piece of land where only three members are actually needed to maintain the same level of production. This pattern is exactly what the question describes. Seasonal unemployment, in contrast, refers to times of the year when no work is available at all, which is not the focus in the question. This comparison confirms that disguised unemployment is the correct term.


Why Other Options Are Wrong:
Seasonal unemployment: This occurs when workers are employed only during certain seasons, such as in sugar mills or tourism, and remain unemployed in the off season. It does not describe extra workers whose removal would not change output.Frictional unemployment: This refers to short term unemployment while people are searching for new jobs or shifting between jobs and industries.Structural unemployment: This arises from long term changes in the economy, such as technological changes or shifts in demand, which make some skills obsolete.


Common Pitfalls:
Students sometimes confuse seasonal and disguised unemployment because both are frequently mentioned in the context of agriculture. However, seasonal unemployment is about lack of work in certain periods, whereas disguised unemployment is about hidden surplus labour during working periods. Another pitfall is assuming that any rural unemployment must be seasonal, which is not correct. Careful attention to the description in the question helps avoid these mistakes.


Final Answer:
The type of unemployment most commonly observed in Indian agriculture, where more workers are engaged than actually required, is Disguised unemployment.

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