Which of the following factors makes the official unemployment rate an overstatement of the actual level of unemployment in the economy?
A)Inclusion of discouraged workers
B)Inclusion of those only working part time
C)Inclusion of those who are overqualified for their current jobs
D)Inclusion of those who are marginally attached to the labor force
E)Inclusion of those who pretend to look for work in order to qualify for welfare programs

Question

Quizplus · Accepted Answer

The official unemployment rate may be overstated when it includes individuals who claim to be actively looking for work primarily to qualify for welfare or unemployment benefits, rather than a genuine interest in finding employment. This can inflate the number of people considered unemployed.

Which of the Following Factors Makes the Official Unemployment Rate