Because of the way discouraged workers and part-time employment are measured,the official unemployment rate
A)overstates the unemployment problem
B)understates the unemployment problem
C)truly reflects the level of unemployment
D)overstates the size of the labor force
E)understates the size of the labor force

Question

Quizplus · Accepted Answer

The official unemployment rate only measures those who are actively seeking employment and excludes discouraged workers and those who are working part-time but would prefer full-time employment. Therefore, the official unemployment rate understates the true level of unemployment.

Because of the Way Discouraged Workers and Part-Time Employment Are