The unemployment rate may underestimate the true extent of unemployment if:
A)many part-time employees would like to work full-time, but are unable to get the additional work.
B)employees increase the number of hours they work overtime.
C)there are a large number of people working in the underground economy.
D)any of the above occur.

Question

The unemployment rate may underestimate the true extent of unemployment if:
A)​many part-time employees would like to work full-time, but are unable to get the additional work.
B)​employees increase the number of hours they work overtime.
C)​there are a large number of people working in the underground economy.
D)​any of the above occur.

Quizplus · Accepted Answer

The unemployment rate may underestimate true unemployment if many part-time workers want full-time jobs but can't find them, as they are counted as employed despite being underemployed.

The Unemployment Rate May Underestimate the True Extent of Unemployment