Exclusion of which of the following tends to understate the true level of unemployment in the economy?
A) Children.
B) Retired persons.
C) Students.
D) People who do not want to work.
E) Discouraged workers.

Question

Quizplus · Accepted Answer

Discouraged workers are those who have given up on finding a job and have stopped actively seeking employment. They are not included in the unemployment rate calculation, which tends to understate the true level of unemployment in the economy.

Exclusion of Which of the Following Tends to Understate the True