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Question
Assertion (A): Full employment refers to, absence of involuntary unemployment.
Reason (R): Under full employment situation, all willing and able bodied people get employment at prevailing wage rate.
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 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.
Solution
Assertion (A) is false, but Reason (R) is true.
Explanation:
- There is always some unemployment at full employment. It is inevitable for an economy to have some unemployment, such as frictional and structural unemployment.
- Under full employment, all human resources who are able and willing to work at the prevailing wage rate are employed.
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