By Classifying Discouraged Workers as Out of the Labor Force

question 200

Multiple Choice

By classifying discouraged workers as out of the labor force, the unemployment rate is ________ if they were considered as employed.

• A) higher than
• B) lower than
• C) the same as
• D) Any of the above can be correct.

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Definitions:

Increased Cost

The rise in the financial expenditure required to perform an activity, purchase goods, or maintain operations.

Collapse of Market

A rapid and significant decline in the value or performance of a market, leading to a widespread loss of confidence and investment.

Specific Performance

A legal remedy whereby a court orders the party who breached a contract to perform the promised action rather than merely compensating the other party with money.

Quasi-contract

An obligation imposed by law to prevent unjust enrichment, where the court enforces a contractual obligation on parties who have not agreed to enter into a contract.