Some Persons Are Counted as Out of the Labor Force

question 157

Multiple Choice

Some persons are counted as out of the labor force because they have made no serious or recent effort to look for work.However,some of these individuals may want to work even though they are too discouraged to make a serious effort to look for work.If these individuals were counted as unemployed instead of out of the labor force,

• A)both the unemployment rate and labor-force participation rate would be higher.
• B)the unemployment rate would be higher and the labor-force participation rate would be lower.
• C)the unemployment rate would be lower and the labor-force participation rate would be higher.
• D)None of the above is correct.

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