Official Unemployment Statistics

question 46

Multiple Choice

Official unemployment statistics:

• A) understate unemployment because individuals receiving unemployment compensation are counted as employed.
• B) understate unemployment because discouraged workers are not counted as unemployed.
• C) include cyclical and structural unemployment but not frictional unemployment.
• D) overstate unemployment because workers who are involuntarily working part time are counted as being employed.

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Definitions:

Lithosphere

The outermost layer of the Earth, comprising the crust and the uppermost part of the mantle, which is rigid and brittle.

Abyssal Plain

Large, flat areas of the deep ocean floor, situated between continental margins and mid-ocean ridges, covered with fine sediment.

Mid-Ocean Ridge

An underwater mountain range formed by plate tectonics, characterized by volcanic activity and new seafloor formation.

Isostasy

A principle stating that the Earth's crust is in gravitational equilibrium, where areas of thicker or denser crust sink deeper into the mantle, and areas of thinner crust rise.