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Exercises · Q4

Q.State whether True or False, with reason: "A fully employed person can never be classified as poor."

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This statement is False. A person can be fully employed and still be classified as poor — this is the case of the "working poor": for example, a marginal farmer or a low-paid casual labourer may work every single day, yet earn income so low (because the occupation itself has low productivity/wages) that their household still falls below the poverty line. Unemployment is one important CAUSE of poverty, but poverty is fundamentally about income/consumption falling short of a minimum standard — however that shortfall ar …

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