Countries Define Unemployment Differently and Use Different Methods to Count

question 68

Multiple Choice

Countries define unemployment differently and use different methods to count the unemployed. This is evidenced in all of the following except:

• A) In some countries, only those people who register for unemployment benefits are considered unemployed, so those who have not registered are excluded.
• B) Some countries conduct monthly surveys of households to estimate the unemployment rate, instead of relying on an unemployment register.
• C) Official Italian unemployment data include people who have not looked for work in the past 30 days, resulting in a rate that is twice as high than if those were excluded.
• D) Through the 1960s and early 1970s, European unemployment rates generally were lower than U.S. and Canadian rates, but in the mid-1980s the U.S. unemployment began to fall and the European unemployment remained high.
• E) The Organization for Economic Cooperation and Development found that only 80% - 85% of those surveyed as unemployed were registered in Germany, France, and the United Kingdom.

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Definitions:

Price Elasticity of Demand

An assessment of the variation in the amount of a product desired in relation to fluctuations in its cost.

Major League Baseball

The professional baseball organization that is the oldest of the four major professional sports leagues in the United States and Canada.

Linear Demand Function

A mathematical representation showing a straight-line relationship between the quantity demanded of a good and its price.

Price Elasticity of Demand

A gauge for understanding how sensitive the demand for a product is to price changes.