Question : Assertion: Cyclical unemployment occurs due to fluctuations in the business cycle.
Reason: During economic recessions, businesses reduce their workforce to cut costs.
Option 1: Both assertion and reason are true, and the reason is the correct explanation of the assertion.
Option 2: Both assertion and reason are true, but the reason is not the correct explanation of the assertion.
Option 3: Assertion is true, but the reason is false.
Option 4: Assertion is false, but the reason is true.
Correct Answer: Both assertion and reason are true, and the reason is the correct explanation of the assertion.
Solution : The correct answer is (a) Both assertion and reason are true, and the reason is the correct explanation of the assertion.
The assertion states that cyclical unemployment occurs due to fluctuations in the business cycle, which is true. Cyclical unemployment refers to the unemployment that arises as a result of downturns in the business cycle. During economic recessions or contractions, businesses may experience a decrease in demand for their products or services, leading to a decrease in production. To cut costs and adjust to the reduced demand, businesses may lay off workers, resulting in cyclical unemployment.
The reason provided states that businesses reduce their workforce during economic recessions to cut costs, which is also true. Economic recessions often lead to a decline in sales and revenue for businesses, making it necessary for them to reduce expenses, including labor costs. One way to achieve this is by reducing the number of employees through layoffs or hiring freezes. Therefore, both the assertion and reason are true, and the reason provides a correct explanation for the occurrence of cyclical unemployment during economic downturns.
Question : Assertion: Structural unemployment occurs due to a mismatch of skills between job seekers and available jobs.
Reason: Technological advancements and changes in the economy require new skill sets.
Question : Assertion: Unemployment and poverty go hand in hand. Reason: Poverty is a result of unemployment
Option 1: Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A)
Option 2: Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation of Assertion (A)
Option 3: Assertion (A) is True but Reason (R) is False
Option 4: Assertion (A) is False but Reason (R) is True
Question : Assertion: Economic growth can lead to a reduction in unemployment.
Reason: Increased investment and business expansion creates more job opportunities.
Question : Assertion (A): Casual employment pushes people into indebtedness which reinforced poverty. Reason (R): India is a country sustaining cyclical unemployment.
Option 1: Both assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A)
Option 2: Both assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation of Assertion (A)
Option 3: Assertion (A) is true but Reason (R) is false
Option 4: Assertion (A) is false but Reason (R) is true.
Question : Assertion: Skill development programs play a crucial role in reducing unemployment.
Reason: Enhancing individuals' skills improves their employability in the labor market.
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