A Weakness That Could Be Noted About the Unemployment Rate

question 45

Multiple Choice

A weakness that could be noted about the unemployment rate is that it

• A) considers marginally attached workers as unemployed.
• B) does not count part-time workers.
• C) overestimates the number of part-time workers.
• D) counts discouraged workers as employed.
• E) does not account for the underutilisation of workers.

---

Definitions:

Demand Curve

A graph showing the relationship between the price of a good and the quantity demanded by consumers.

Quantity Demanded

The total amount of a good or service that consumers are willing and able to purchase at a specific price level, at a given point in time.

Price Decreases

A situation where the cost of goods or services lowers over time, often leading to increased consumer purchasing power.

Budget Constraint

The limitations on the purchase of goods and services imposed by a budget, representing the combination of goods and services that a consumer can afford with a fixed income.