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Defend or refute the following statement with valid explanation:
‘Disguised unemployment is a common form of unemployment in rural India’
Answer:
The given statement is true. Disguised unemployment is a situation where the marginal productivity of labour is zero. In India, this situation is often witnessed, as farming is more of a family affair in rural areas and most of the members are generally engaged on the farms without any direct contribution to the production process. This problem persists in rural India due to lesser availability of jobs.
