Why does the government measure unemployment through the Current Population
Survey?
A)The government needs to know how many people will apply for unemployment compensation benefits.
B)The government needs to know how many people should pay income tax.
C)Private employers do not care about unemployment, and so no private-sector firm would collect unemployment data.
D)The level of unemployment is an indicator of the overall health of the economy.
E)Unemployment is too rare an event to be measured by the census.

Question

Quizplus · Accepted Answer

The level of unemployment is an important indicator of the overall health of the economy. A high level of unemployment can be a sign of a weak economy, and vice versa. Therefore, the government measures unemployment through the Current Population Survey to monitor the health of the economy and make policy decisions accordingly. Choices A, B, C, and E are incorrect because they do not reflect the primary reason why the government measures unemployment through the Current Population Survey.

Why Does the Government Measure Unemployment Through the Current Population