Refer to the Given Information About a Hypothetical Economy

question 133

Multiple Choice

$$\begin{array} { | l | c | } \hline \text { Full-time Employed } & 80 \\\hline \text { Part-time Employed } & 25 \\\hline \text { Unemployed } & 15 \\\hline \text { Discouraged Workers } & 5 \\\hline \text { Members of Underground Economy } & 6 \\\hline \text { Consumer Price Index } & 110 \\\hline\end{array}$$ Refer to the given information about a hypothetical economy. If members of the underground economy are currently counted as part of the unemployed when in fact they are employed, the
O?cial unemployment rate is overstated by about

• A) 0 percentage points.
• B) 2 percentage points.
• C) 5 percentage points.
• D) 6 percentage points.

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Definitions:

Foreclosure Order

A legal directive which authorizes the sale of collateral upon borrowers' failure to pay back a loan.

Judicial Lien

A lien obtained by a creditor through court proceedings, securing the payment of a judgment by claiming the debtor's property until the debt is satisfied.

Household Items

Personal belongings and objects that are used within a home for daily functions and activities.

Wage Garnishment

A court-ordered process that requires an employer to withhold a portion of an employee's wages and send it directly to the creditor until a debt is paid off.