Which of the following factors makes the official unemployment rate an overstatement of the actual level of unemployment in an economy?
A) inclusion of discouraged workers
B) inclusion of those only working part time
C) inclusion of those who are overqualified for their current jobs
D) inclusion of those who are marginally attached to the labor force
E) inclusion of those who pretend to look for work in order to qualify for welfare programs

Question

Quizplus · Accepted Answer

The official unemployment rate may overstate actual unemployment because it includes those who claim to be seeking employment primarily to qualify for welfare benefits, not necessarily because they are unable to find work. This can inflate the perceived level of unemployment.

Which of the Following Factors Makes the Official Unemployment Rate