Which of the Following Is False in Regard to the Unemployment

question 38

Multiple Choice

Which of the following is false in regard to the unemployment rate?

• A) According to Bureau of Labor Statistics, the country loses goods and services that could have been produced.
• B) A nation benefits from unemployment due to a lower level of wages required to be paid by employers.
• C) According to the Bureau of Labor Statistics, families lose wages due to unemployment.
• D) The unemployment rate is the percentage of a nation's labor force not working at any one time.
• E) The purchasing power of unemployed workers is lost.

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Definitions:

Average Tax Rate

The ratio of the total amount of taxes paid to the total tax base (taxable income or spending), reflecting the percentage of income paid in taxes.

Taxable Income

The amount of income that is used to calculate an individual's or a company's income tax due to the government.

Average Tax Rate

The fraction of total income that goes to taxes, calculated by dividing the total amount of taxes paid by the taxpayer's total income.

Interest Income

The income earned by an entity from its investments in interest-bearing financial assets such as bonds, loans, or savings accounts.