Question:

Read the following statements – Assertion (A) and Reason (R). Choose the correct alternative given below: Assertion (A): Full employment situation refers to the absence of involuntary unemployment.
Reason (R): Under full employment situation, all the willing and able-bodied people get employment at the prevailing wage rate.

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Understand full employment as the absence of involuntary unemployment, where frictional or voluntary unemployment may still exist.
Updated On: Jan 30, 2025
  • Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A).
  • Both Assertion (A) and Reason (R) are true, but Reason (R) is {not} the correct explanation of Assertion (A).
  • Assertion (A) is true, but Reason (R) is false.
  • Assertion (A) is false, but Reason (R) is true.
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The Correct Option is A

Solution and Explanation

Assertion (A) is true because full employment implies no involuntary unemployment; however, frictional unemployment may still exist. Reason (R) is true and explains Assertion (A) because full employment includes the provision of jobs for all willing and capable individuals at the prevailing wage rate.
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