Which of the following causes the official measure of the unemployment rate to understate the true extent of joblessness?
A)Many full-time workers really want to be part-time workers.
B)People who collect unemployment benefits report themselves to be searching for a job.
C)Discouraged workers are not counted as unemployed.
D)Discouraged workers are counted as unemployed.

Question

Quizplus · Accepted Answer

Discouraged workers, who are individuals who are not currently looking for work because they believe there are no job opportunities available for them, are not included in the official measure of the unemployment rate. This means that the official measure may understate the true level of joblessness in the economy.

Which of the Following Causes the Official Measure of the Unemployment