Suppose That Some People Are Counted as Unemployed When, to Maintain

question 109

Multiple Choice

Suppose that some people are counted as unemployed when, to maintain unemployment compensation, they search for work only at places where they are unlikely to be hired. If these individuals were counted as out of the labour force instead of as unemployed, how would the labour statistics change?

• A) The unemployment rate and the labour-force participation rate would be higher.
• B) The unemployment rate and the labour-force participation rate would be lower.
• C) The unemployment rate would be lower, and the labour-force participation rate would be higher.
• D) The unemployment rate would be higher, and the labour-force participation rate would be lower.

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Definitions:

Dementia

A category of brain diseases that cause a long-term and often gradual decrease in the ability to think and remember, affecting daily functioning.

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Individuals who are in the later stage of their life, often defined as being 65 years of age or older.

Osteoporosis

A medical condition characterized by weakened bones, making them fragile and more likely to break.

Daily Walking

A routine of walking every day to improve or maintain physical and mental health.