Which of the following is excluded from calculations of the official unemployment rate, leading to the true extent of unemployment being understated?
A) retired persons
B) students
C) people who do NOT want to work
D) discouraged workers

Question

Which of the following is excluded from calculations of the official unemployment rate, leading to the true extent of unemployment being understated?  
A) retired persons 
B) students 
C) people who do NOT want to work 
D) discouraged workers

Quizplus · Accepted Answer

Discouraged workers, who have given up on finding employment and have stopped actively looking for work, are not included in the official unemployment rate. This means that the true extent of unemployment is understated as it does not account for those who have become discouraged and dropped out of the labor force. Retired persons and students are not considered part of the labor force, and people who do not want to work are not actively seeking employment, so they are also excluded from the unemployment rate calculation.

Which of the Following Is Excluded from Calculations of the Official