Sia
Question
Statistics
Posted 6 months ago
Which of the following is a reason that the official unemployment rate can understate the actual unemployment situation in an economy?
Choose 1 answer:
(A) Noncitizens are not counted in the labor force.
B Part-time workers are not counted as employed.
(C) Discouraged workers are not in the labor force.
(D) Underemployed workers are counted as unemployed.
(E) Unemployed workers looking for work are not in the labor force.
Sign in to unlock the answer
Answer from Sia
Posted 6 months ago
Solution by Steps
step 1
To address the question, we need to understand how the official unemployment rate is calculated and what factors can cause it to understate the actual unemployment situation
step 2
The official unemployment rate typically includes those who are jobless, actively seeking work, and available to take a job
step 3
Noncitizens not being counted in the labor force (A) does not necessarily understate unemployment, as the rate is a percentage of the labor force
step 4
Part-time workers (B) are counted as employed, even if they are seeking full-time employment, so this does not understate unemployment
step 5
Discouraged workers (C) are not actively seeking work, often due to believing no jobs are available for them, and are not included in the labor force, which can understate unemployment
step 6
Underemployed workers (D) are considered employed, even if they are working less than they would like or in jobs that do not utilize their skills, so this does not lead to an understatement of unemployment
step 7
Unemployed workers looking for work but not being in the labor force (E) is contradictory, as those looking for work are considered part of the labor force
Answer
C
Key Concept
Discouraged workers and the labor force
Explanation
Discouraged workers are not counted in the labor force, which can lead to an understatement of the actual unemployment situation, as they are without jobs but are not actively seeking employment due to various reasons, such as believing no jobs are available for them.
Not the question you are looking for? Ask here!
Enter question by text
Enter question by image
Unlock Smarter Learning with AskSia Super!
Join Super, our all-in-one AI solution that can greatly improve your learning efficiency.
30% higher accuracy than GPT-4o
Entire learning journey support
The most student-friendly features
Study Other Question