Suppose That Some People Report Themselves as Unemployed When,in Fact,they

question 17

Multiple Choice

Suppose that some people report themselves as unemployed when,in fact,they are working in the underground economy.If these persons were counted as employed,then

• A)both the unemployment rate and labor-force participation rate would be higher.
• B)both the unemployment rate and labor-force participation rate would be lower.
• C)the unemployment rate would be higher,and the labor-force participation rate would be higher.
• D)the unemployment rate would be lower,and the labor-force participation rate would be unaffected.

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Definitions:

Invested Capital

The total amount of money put into a company by its owners and creditors for use in the business operations, often used as a metric in financial analysis.

Investment Centre

An organizational division or unit that is responsible for generating its own revenue as well as controlling its own costs, often evaluated based on its profitability and return on investment.

Return On Investment

A measure used to evaluate the efficiency or profitability of an investment, calculated as the net profit of the investment divided by its initial cost.

Invested Capital

The total amount of money that has been invested in a company by shareholders and debt holders, used for operational and capital expenditure purposes.