Statement I.Full employment and full production mean exactly the same thing.
Statement II.You can attain full employment without attaining full production,but you cannot attain full production without attaining full employment.
A)Statement I is true and statement II is false.
B)Statement II is true and statement I is false.
C)Both statements are true.
D)Both statements are false.

Question

Quizplus · Accepted Answer

Full employment means that all those who are willing and able to work are employed, but it doesn't necessarily mean that production is at its maximum capacity. On the other hand, full production means that the economy is operating at its maximum capacity and all resources are being utilized efficiently. Therefore, it is possible to have full employment without full production, but you cannot have full production without full employment. Thus, Statement II is true and Statement I is false.