All forms of unemployment reflect poverty, but all forms of poverty do not necessarily reflect unemployment. Which of the following is correct about the statement?
All forms of unemployment reflect poverty, but all forms of poverty do not necessarily reflect unemployment. Which of the following is correct about the statement?
The correct option is B The second part is correct
The first part of the statement is incorrect, but the second part is true. Being out of work is not necessarily the same as being poor, because savings, or family support can, for instance, provide a financial cushion during a short period of work. Over time, unemployment causes these resources to be used up. However, even a long period out of work may not result in poverty where members of a household, other than the household head, are earning. Similarly, all forms of poverty do not necessarily relflect unemployment. In relative poverty, you are poor relative to a group of people who may be earning more than you, when you are in unemployment.
The second part is correct
The first part of the statement is incorrect, but the second part is true. Being out of work is not necessarily the same as being poor, because savings, or family support can, for instance, provide a financial cushion during a short period of work. Over time, unemployment causes these resources to be used up. However, even a long period out of work may not result in poverty where members of a household, other than the household head, are earning. Similarly, all forms of poverty do not necessarily relflect unemployment. In relative poverty, you are poor relative to a group of people who may be earning more than you, when you are in unemployment.
