“In rural areas of India, more members of a family are engaged in work, yet the gross income of the…………….

Question :”In rural areas of India, more members of a family are engaged in work, yet the gross income of the family is generally low.”Identify the type of unemployment indicated in the above statement and explain the paradox associated with it.

The correct answer is -The type of unemployment indicated in the given statement is disguised unemployment.

Disguised unemployment refers to a situation where more people are engaged in a task than are required. In other words, the additional laborers are not contributing to any additional output or productivity. In rural areas of India, disguised unemployment is prevalent in agriculture, where families often have more laborers than required to perform farming activities.

The paradox associated with disguised unemployment in rural areas of India is that while there are more members of a family engaged in work, the gross income of the family is generally low. This is because the surplus labor force does not contribute to any additional output or productivity, which means that the family’s income is not proportional to the number of laborers. In fact, the extra laborers often add to the cost of production, as they need to be provided with food and other resources, and this leads to lower net income.

This paradox highlights the need for policies that can help create more productive employment opportunities in rural areas of India. By creating more productive employment opportunities, families can earn a higher income, which can help them meet their basic needs and improve their standard of living. Additionally, such policies can help reduce the burden of disguised unemployment in agriculture and increase the overall productivity of the rural economy.