Which of the following factors makes the official unemployment rate an overstatement of the actual level of unemployment in the economy?
A) exclusion of discouraged workers
B) inclusion of those working only part time
C) exclusion of those who work at a family business
D) inclusion of those who pretend to look for work in order to qualify for welfare programs

Question

Which of the following factors makes the official unemployment rate an overstatement of the actual level of unemployment in the economy?  
A) exclusion of discouraged workers 
B) inclusion of those working only part time 
C) exclusion of those who work at a family business 
D) inclusion of those who pretend to look for work in order to qualify for welfare programs

Quizplus · Accepted Answer

The inclusion of those who pretend to look for work in order to qualify for welfare programs can lead to an overstatement of the actual level of unemployment, as these individuals are not genuinely seeking employment but are counted as unemployed in official statistics.

Which of the Following Factors Makes the Official Unemployment Rate