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A farm where five family members do work that only two are needed for is an example of:
AOpen unemployment with no one having any job
BCyclical unemployment from seasonal demand swings
CDisguised unemployment with excess workers on a task
DStructural unemployment from a skill mismatch problem
Answer & Solution
Correct answer: C. Disguised unemployment with excess workers on a task
Disguised unemployment exists when more workers are engaged in a task than are actually required. Removing the excess workers does not reduce output. Common on small Indian farms.
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