Cynthia is collecting unemployment insurance benefits. To continue to receive her benefits, she must be looking for work; however, she only applies at places where she is unlikely to be hired because she doesn't really want to work. People like Cynthia make the reported unemployment rate less than the true rate of unemployment.

Question

Quizplus · Accepted Answer

Cynthia's behavior would not make the reported unemployment rate less than the true rate of unemployment. In fact, her behavior would likely have little to no effect on the reported unemployment rate as she is still technically considered unemployed even if she is not actively seeking work at places where she is likely to be hired. The reported unemployment rate is typically calculated based on surveys and data collection from a wide range of individuals and businesses, not just those currently collecting unemployment benefits.

Cynthia Is Collecting Unemployment Insurance Benefits