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Q.

Too much unemployment leads to further exploitation of workers.


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Detailed Solution

The above statement is true.
When unemployment is rampant, too many people are left without a means to earn their livelihood. This situation makes people take up any work on offer without considering the wages and hazards of that particular work. An employer will always look for cheap labour, easily available when there is unemployment. So unemployment makes people work at lower wages as they do not have bargaining power, and employers exploit this to maximise their benefits.
 
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