What Is the Discouraged Worker Effect

question 11

Multiple Choice

What is the discouraged worker effect?

• A) A discouraged worker will accept any job offer regardless of the wage.
• B) Because a discouraged worker accepts a part-time job when he wants a full-time job, he is considered to still be unemployed.
• C) A discouraged worker accepts a part-time job and is therefore counted as being employed.
• D) A discouraged worker stops looking for a job but is still counted as being in the labor force.
• E) A discouraged worker stops looking for a job and therefore is no longer counted as being in the labor force.