Statement–Argument — Should young entrepreneurs be encouraged by policy and institutions? Arguments: I. Yes, this will contribute to industrial development and innovation. II. Yes, it will reduce pressure on the employment market by creating jobs.

Introduction / Context:
Encouraging entrepreneurship is often justified on two robust grounds: productivity/innovation gains and job creation. Both lines of reasoning directly connect to macroeconomic objectives and are widely evidenced across economies.

Given Data / Assumptions:

• Policy: Encourage young entrepreneurs.
• Arg I: Supports via industrial development and innovation.
• Arg II: Supports via employment generation and reduced labor-market pressure.

Concept / Approach:
Strong arguments are relevant and substantive. The first emphasizes growth and competitiveness; the second emphasizes labor absorption and reduced unemployment/underemployment. The two are not mutually exclusive; both can be simultaneously valid reasons.

Step-by-Step Solution:
1) Arg I: Startups diffuse new technology, improve process efficiency, and stimulate upstream/downstream industries—directly fostering industrial development. Strong.2) Arg II: New firms hire, and successful scaling generates net job creation; even when some ventures fail, the ecosystem effect increases opportunities. Strong.3) Since both arguments independently and directly support the policy, both are strong.

Verification / Alternative check:
Consider counterfactuals where entrepreneurship is discouraged—innovation lags and job creation relies narrowly on a few incumbents. The arguments remain relevant and persuasive.

Why Other Options Are Wrong:
Picking only one underweights the multi-dimensional rationale; “neither” is untenable.

Common Pitfalls:
Assuming that supporting entrepreneurs harms workers; in reality, the arguments stress complementary benefits.

Final Answer:
If both I and II are strong.