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.

• A. Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A).
• B. Both Assertion (A) and Reason (R) are true, but Reason (R) is {not} the correct explanation of Assertion (A).
• C. Assertion (A) is true, but Reason (R) is false.
• D. Assertion (A) is false, but Reason (R) is true.

Hint:

Understand full employment as the absence of involuntary unemployment, where frictional or voluntary unemployment may still exist.

Answer 1

The Correct Option is A

Assertion (A) is valid: full employment signifies the absence of involuntary unemployment, though frictional unemployment can persist. Reason (R) is valid and clarifies Assertion (A): full employment encompasses providing opportunities for all individuals willing and able to work at the current wage.