Question

Read the following statements: Assertion (A) and Reason (R). Choose the correct alternative from those given below: Assertion (A): Voluntarily unemployed people are those able-bodied people who are not willing to work at the prevailing wage rate. Reason (R): There exists zero involuntary unemployment at full employment level of equilibrium.

• 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:

Voluntary unemployment is different from involuntary unemployment as it results from personal choice rather than lack of job opportunities.

Answer 1

The Correct Option is B

Voluntary unemployment signifies an individual's decision to remain jobless despite being able to work and the availability of employment at the current wage, driven by factors like personal choices, discontent with existing jobs, or anticipation of better remuneration. Full employment equilibrium describes a condition where every willing and capable individual is employed, with only voluntary unemployment present. At this point, involuntary unemployment is non-existent, meaning any person seeking employment at the established wage can secure a position. Conclusion: Although both assertions hold validity, the Reason (R) does not directly elucidate the Assertion (A), thus option (B) is appropriate.