Given below are two statements: Statement I : Disguised Unemployment is a structural phenomenon in Indian Agriculture. Statement II : Marginal Productivity of additional labour Units is zero (MPL = 0) in Indian Agriculture due to disguised unemployment. In the light of the above statements, choose the correct answer from the options given below:

Disguised unemployment

• Disguised or hidden unemployment is a situation in which more persons are engaged in work than are actually required. It is a chronic and structural feature of Indian agriculture, where the family members of a cultivator continue to work on a small holding because there is no alternative employment. Hence, statement I is true.
• In such a situation, if some workers are withdrawn from the farm, the total output does not fall, which means that the marginal productivity of the additional labour units is zero. Hence, statement II is true.
• Disguised unemployment is also found in the service sector, for example where a whole family runs a small shop that could be managed by one or two persons.
• Seasonal unemployment is another characteristic form of unemployment in Indian agriculture.