Which of the following would cause the unemployment rate as measured by Statistics Canada to understate the true degree of joblessness in the economy?
A) people employed in the underground economy
B) unemployed persons who falsely report themselves as actively looking for a job
C) retired people who have no intention of returning to work
D) people with part-time jobs who would prefer to be working full time

Question

Quizplus · Accepted Answer

People with part-time jobs who would prefer to be working full time are considered underemployed and are not counted as unemployed in the official statistics. Therefore, the unemployment rate may not fully capture the extent of joblessness in the economy. The other options, while they may affect the accuracy of the unemployment rate calculation in other ways, do not directly cause it to understate joblessness.

Which of the Following Would Cause the Unemployment Rate as Measured