When You Include Discouraged Workers and Unemployed Workers in Calculations

question 17

Multiple Choice

When you include discouraged workers and unemployed workers in calculations of the unemployment rate

• A) this alternate measure is much lower than the official unemployment rate.
• B) the difference between this alternate measure and the official unemployment rate increases significantly during economic expansions.
• C) this alternate measure is the same as the official unemployment rate.
• D) this alternate measure is much higher than the official unemployment rate.
• E) this alternate measure is not useful in studying the macroeconomy.

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Definitions:

Profit-Maximizing

The process by which a company determines the price and output level that generates the maximum profit.

Marginal Cost

The increased cost resulting from the production of one more unit of a product or service.

Revenue

The total income received by a business or organization from its normal business operations.

Cost

is the monetary valuation of effort, material, resources, time, and utilities consumed, goods or services produced, or other expenses incurred.