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      Question

      Absolute poverty is measured using a fixed income

      threshold. Which unemployment type keeps people below this threshold even when they are counted as employed?
      A Cyclical unemployment Correct Answer Incorrect Answer
      B Disguised unemployment Correct Answer Incorrect Answer
      C Frictional unemployment Correct Answer Incorrect Answer
      D Seasonal unemployment Correct Answer Incorrect Answer
      E Voluntary unemployment Correct Answer Incorrect Answer

      Solution

      In disguised unemployment, people appear employed but have zero or very low productivity, so their income remains below the poverty line.

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