Question

Statement 1: Unemployment and Poverty are directly related.

Statement 2: Unemployment refers to a situation when some one, who is able and willing to work, does not find work at prevailing wage rate; this may result into poverty of the masses.

Options

• Both the statements are true.

• Both the statements are false.

• Statement 1 is true and statement 2 is false.

• Statement 2 is true and statement 1 is false.

Answer 1

Both the statements are true.

Explanation: 

When everyone who is capable and eager to work is not able to find employment, this is known as unemployment. Poverty among the masses is caused by unemployment.