CBSE 2021 Class 12 Economics Term 1 Paper

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Question : 45
Total: 60
Read the following statements and choose the correct alternative from the alternatives given below:
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.
Solution:  
(a) Both the statements are true
Explanation: There is direct relation between unemployment and poverty. Unemployment leads to poverty and poverty in turn leads to the unemployment. Where unemployment refers to a situation when some one, who is able and willing to work and does not find work at prevailing wage rate. An unemployed person has no means to earn money and cannot fulfil his own and his family's basic needs.
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