Exclusion of which of the following tends to understate the true extent of unemployment in the economy?
A)children
B)retired persons
C)students
D)people who do not want to work
E)discouraged workers

Question

Quizplus · Accepted Answer

Discouraged workers are those who have given up looking for work because they believe that no jobs are available for them. Excluding them tends to understate the true extent of unemployment because they are not included in the unemployment statistics, which artificially lowers the unemployment rate.

Exclusion of Which of the Following Tends to Understate the True