The unemployment rate may underestimate the true extent of unemployment because:
A)it counts part-time workers as fully employed.
B)it does not account for employees who increase the number of hours they work.
C)it includes those who work in the underground economy.
D)it includes discouraged workers.
E)it does not include teenagers who join the labor force just after graduation.

Question

Quizplus · Accepted Answer

The unemployment rate may underestimate true unemployment because it counts part-time workers as fully employed, ignoring whether they desire full-time employment.

The Unemployment Rate May Underestimate the True Extent of Unemployment