What Are Two Criticisms of the Unemployment Rate? How Do

question 7

Essay

What are two criticisms of the unemployment rate? How do these criticisms relate to the overstating or understating of the unemployment rate?

---

Definitions:

Allowance Method

An accounting technique used to estimate uncollectible accounts receivable and record them as an expense.

Bad Debts

Money owed to a company that is considered irrecoverable and is written off as a loss.

Outstanding Balances

The total amount of money owed that has not yet been paid.

Credit Card

A plastic card issued by a bank allowing the cardholder to borrow funds at the point of sale, which are to be repaid with interest.