Practicing Success

Target Exam

CUET

Subject

Economics

Chapter

Macro Economics: Determination of Income and Employment

Question:

Read the following statements - Assertion (A) and Reason (R)carefully and choose the correct alternative given below:
Assertion (A) :Full employment implies the situation of 100 percent employment in an economy.
Reason (R ):Voluntary unemployment is not taken into account while estimating the total unemployment in an economy.

Options:

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 and 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

Correct Answer:

Assertion (A) is false but Reason (R ) is true

Explanation:

The correct answer is Option 4: Assertion (A) is false but Reason (R) is true.

Assertion (A) :Full employment implies the situation of 100 percent employment in an economy. This is false. Full employment is the situation where all people who are available and searching for work can find a job. It does not mean that there is zero unemployment.
Reason (R):Voluntary unemployment is not taken into account while estimating the total unemployment in an economy. This is true.