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

question 50

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:

Revenue Accounts

The financial accounts that track the income generated from a company's normal business operations, such as sales or service charges.

Income Summary

The income summary is a temporary account used during the closing process that contains the sums of all revenues and expenses for the period to calculate the net income or loss.

Net Income

The final financial gain of a firm once it has subtracted expenses and taxes from its revenue.

Net Loss

The amount by which total expenses exceed total revenues, indicating that a business spent more than it earned during a given period.