Distinguish between open unemployment and disguised unemployment.
Open unemployment refers to a situation where a person does not have a job and is clearly visible as unemployed. It is easily identifiable because the person remains idle and has no work to do.
Disguised unemployment, on the other hand, is a form of underemployment where people appear to be working but are actually made to work less than their potential. In this situation, everyone seems employed and no one remains idle, but in reality, their labour effort gets divided. For example, in rural areas, all family members may work on a small plot of land, but each one is not fully employed. This kind of unemployment is hidden and not easily visible like open unemployment.
Explanation
The textbook context explains disguised unemployment through the example of Laxmi's family where all five members work on a small plot but are underemployed. It explicitly contrasts this with open unemployment, stating that disguised unemployment 'is hidden in contrast to someone who does not have a job and is clearly visible as unemployed.' This distinction is key to answering the question.