Q.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. Alternatives : (A) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of the Assertion (A). (B) Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of the Assertion (A). (C) Assertion (A) is true, but Reason (R) is false. (D) Assertion (A) is false, but Reason (R) is true.

The Assertion is correct: voluntarily unemployed people are those who are able-bodied but choose not to work at the current wage rate. The Reason is also correct: at the full employment level of equilibrium, there is no involuntary unemployment — everyone who wants to work at the prevailing wage can find a job. However, the Reason does not explain the Assertion. The Assertion defines a type of unemployment, while the Reason describes a condition of the labour market at full …

Let’s begin with the Assertion. It says that voluntarily unemployed people are those able-bodied individuals who are not willing to work at the prevailing wage rate. This is exactly what the NCERT textbook means by voluntary unemployment. These are people who could work — they are physically capable and available — but they choose not to accept a job at the current market wage. Perhaps they find the wage too low, or they are waiting for a better opportunity, or they simply prefer not to work. The key point is that the choice is theirs; the economy is not failing to provide jobs for them. So the Assertion is correct.

Now the Reason: “There exists zero involuntary unemployment at full employment level of equilibrium.” This is a standard macroeconomic proposition. At full employment, the economy is operating at its potential output, and everyone who is willing and able to work at the prevailing wage rate has a job. Involuntary unemployment — where people are willing to work at the going wage but cannot find work — is zero. The Reason is therefore also true, as per NCERT’s treatment of full employment. …