The U6 Unemployment Rate Is Designed to Adjust for a Few

question 110

Multiple Choice

The U6 unemployment rate is designed to adjust for a few issues in the U3 unemployment rate. Which is NOT one of the main adjustments?

• A) Marginally attached workers are counted as part of the labor force.
• B) Underemployed workers are counted as unemployed persons.
• C) The underemployed are subtracted from the numerator.
• D) Marginally attached workers are counted as unemployed members of labor force.

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Definitions:

Monopoly Power

Monopoly Power is the ability of a monopoly firm to set and control prices due to the lack of competitive market forces.

Wheat Farm

A type of agricultural establishment primarily engaged in the cultivation of wheat.

Natural Monopoly

A scenario in which a single company is able to offer a product or service more cheaply than any possible rivals, usually as a result of benefiting from the economies of scale.

Profit-Maximizing

Profit-maximizing is the process or strategy employed by businesses to adjust their production and sale operations to achieve the highest possible profit.