The unemployment rate is supposed to measure ________. It is an imperfect measure because ________.
A)the number of unemployed plus the number of discouraged searchers expressed as a percentage of the labour force; it excludes the discouraged searchers because Statistics Canada considers them as employed
B)the percentage of the working-age population who are unemployed; it is impossible to count everyone in the working-age population
C)the percentage of the labour force who are unemployed; it is impossible to count everyone in the labour force
D)the underutilization of labour resources; it excludes some underutilized labour and some unemployment is unavoidable
E)the underutilization of labour resources; it includes part-time workers and excludes discouraged workers

Question

Quizplus · Accepted Answer

The unemployment rate measures the underutilization of labor resources. It is imperfect because it excludes some underutilized labor, such as discouraged workers, and some unemployment is unavoidable due to factors like frictional and structural unemployment.

The Unemployment Rate Is Supposed to Measure ________