Official unemployment rate statistics may:

A. Overstate the amount of unemployment by including part-time workers in the calculations

B. Understate the amount of unemployment by excluding part-time workers in the calculations

C. Overstate the amount of unemployment because of the presence of "discouraged" workers who are not actively seeking employment

D. Understate the amount of unemployment because of the presence of "discouraged" workers who are not actively seeking employment

Question

Business

Allyson Larsen

3 October, 02:03

Official unemployment rate statistics may:

A. Overstate the amount of unemployment by including part-time workers in the calculations

B. Understate the amount of unemployment by excluding part-time workers in the calculations

C. Overstate the amount of unemployment because of the presence of "discouraged" workers who are not actively seeking employment

D. Understate the amount of unemployment because of the presence of "discouraged" workers who are not actively seeking employment

+3

Answers (1)

Know the Answer?

Hayley Bennett · Answer 1

The correct answer is option D.

Explanation:

The unemployment rate shows the number of people who are unemployed. It is the ratio of the number of people unemployed and the total labor force.

The discouraged workers are those people who are not employed and are not actively looking for jobs because they were not able to find one and stopped looking.

In the official statistics, the discouraged workers are not included in either labor force or unemployed persons. This may lead to an underestimation of the amount of unemployment.