Underemployment occurs:
A) when workers do not have jobs.
B) when farm workers become more productive.
C) when workers are working fewer hours than they desire or when they are working less productively than they are capable.
D) in IACs but not in the DVCs.

Question

Quizplus · Accepted Answer

Underemployment occurs when workers are not able to find jobs which match their skills and qualifications, or when they are not able to work for a sufficient number of hours or are working in jobs which require lower qualifications/ability than what they possess. This leads to inefficient utilization of the workforce and lower economic output. Underemployment can happen in both IACs and DVCs. Option A is incorrect since unemployment means without jobs, and option B is not a right answer to the question.

Underemployment Occurs