ECONOMICS
BUSINESS CYCLES
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Structural unemployment is less than cyclical unemployment at the going wage rate
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Full employment is greater than the labor force
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The unemployment rate is greater than natural unemployment
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The official rate does not include persons who have given up looking for work
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Part time workers are considered unemployed
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Detailed explanation-1: -The unemployment rate as it is measured officially is often criticized for understating the level of joblessness because it excludes anyone working at all or people who aren’t looking for work. In particular, the official unemployment rate leaves out discouraged workers and the underemployed.
Detailed explanation-2: -Bottom Line. The unemployment rate isn’t an accurate measure of joblessness simply because it doesn’t consider everyone who doesn’t have a job. That’s why many economic experts instead focus on what’s known as the real unemployment rate.
Detailed explanation-3: -Which of the following causes the unemployment rate to understate the true extent of joblessness? Discouraged workers are not counted as unemployed.
Detailed explanation-4: -There is only one official definition of unemployment-people who are jobless, actively seeking work, and available to take a job, as discussed above. The official unemployment rate for the nation is the number of unemployed as a percentage of the labor force (the sum of the employed and unemployed).
Detailed explanation-5: -The unemployment rate is the percentage of people in the labour force who are unemployed. Consequently, measuring the unemployment rate requires identifying who is in the labour force. The labour force includes people who are either employed or unemployed.