What problem with the official unemployment rate is due to the way discouraged workers and part-time employment are measured?
A) The official unemployment rate overstates the unemployment problem.
B) The official unemployment rate understates the unemployment problem.
C) The official unemployment rate overstates the size of the labour force.
D) The official unemployment rate understates the size of the labour force.

Question

What problem with the official unemployment rate is due to the way discouraged workers and part-time employment are measured?  
A) The official unemployment rate overstates the unemployment problem. 
B) The official unemployment rate understates the unemployment problem. 
C) The official unemployment rate overstates the size of the labour force. 
D) The official unemployment rate understates the size of the labour force.

Quizplus · Accepted Answer

The official unemployment rate only takes into account individuals who are actively looking for work and do not include discouraged workers who have given up on finding a job and part-time workers who would prefer full-time employment. Therefore, the official unemployment rate understates the unemployment problem.

What Problem with the Official Unemployment Rate Is Due to the Way