Question

Statement (1): Frictional unemployment is considered voluntary unemployment.

Statement (2): Underemployment is a situation in which a worker does not get full time job.

Options

• Both statements are true.

• Both statements are false.

• Statement 1 is true, Statement 2 is false.

• Statement 2 is true, Statement 1 is false.

Answer 1

Both statements are true.

Explanation:

Statement (1): Frictional unemployment is indeed considered a type of voluntary unemployment. It occurs when workers voluntarily leave their current jobs in search of better opportunities or due to personal reasons such as relocation or further education.

Statement (2): Underemployment refers to a situation where a worker is employed but not in a full-time capacity or is working fewer hours than they desire. This can also include workers employed in jobs below their skill level.