The correct option is (c).
Explanation
Unemployment is not merely an economic phenomenon but has deep social consequences. It represents a wastage of human resources, where individuals who could have contributed to economic growth are unable to do so. This situation affects human capital formation, transforming the population from a potential asset into a liability.Statement-wise Analysis
- Statement 1 is Incorrect. Unemployment results in a loss of income and economic distress for families. Consequently, parents are often unable to afford education for their children, leading to school dropouts rather than increased investment. It creates a negative cycle where lack of resources prevents human capital formation.
- Statement 2 is Correct. Unemployment creates a lack of financial resources, which directly impacts a family's ability to access nutritious food and healthcare services. This leads to a general decline in the health status of the population and increases the burden of disease.
- Statement 3 is Correct. An employed population contributes to the production of goods and services, acting as an asset to the economy. Conversely, unemployed individuals consume resources (subsistence) without contributing to the Gross Domestic Product (GDP). This dependence on the working population turns them into a liability for the economy.
Key Takeaway: Unemployment negatively impacts the quality of life by eroding human capital (health and education) and turning the workforce into an economic liability rather than a productive asset.