Multiple choice

Full employment is a situation where

  1. there is no involuntary unemployment

  2. there is involuntary unemployment

  3. there is no voluntary unemployment

  4. there is voluntary unemployment
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A Correct answer
Explanation

Full employment in economics means a situation where there is no involuntary unemployment - everyone who is willing and able to work at the prevailing wage rate can find a job. It does not mean zero unemployment, as voluntary unemployment (people choosing not to work) may still exist.

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