The Unemployment Rate Does Not Reflect the True Extent of the Unemployment

question 90

Multiple Choice

The unemployment rate does not reflect the true extent of the unemployment problem.Which of the following groups is not counted as unemployed in the official unemployment statistics?

• A)The underemployed and the cyclically unemployed
• B)The underemployed and discouraged workers
• C)Discouraged workers and the frictionally unemployed
• D)The frictionally unemployed and the structurally unemployed
• E)The cyclically unemployed and the frictionally unemployed

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Definitions:

Private Producer

An individual or company that produces goods or services in a market economy without direct government intervention.

Market Economy

An economic system where prices and production are determined by unrestricted competition between privately owned businesses.

Market Economies

Economic systems in which decisions regarding investment, production, and distribution are guided by the price signals created by the forces of supply and demand.

Government Involvement

The participation or intervention of governmental bodies in certain areas of the economy, typically to correct market failures or to achieve certain social goals.