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

question 241

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 labor force instead of as unemployed, then

• A)both the unemployment rate and labor-force participation rate would be higher.
• B)both the unemployment rate and labor-force participation rate would be lower.
• C)the unemployment rate would be lower and the labor-force participation rate would be higher.
• D)the unemployment rate would be higher and the participation rate would be lower.

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Definitions:

Challenging

Referring to a task or situation that is demanding and tests one's abilities or resources.

Optimal Level

The most favorable, effective, or desirable degree or quantity of something for achieving a specific outcome.

Individualizing Rewards

Tailoring reward systems to meet the specific needs, desires, or achievements of individual employees.

Expectancy Theory Component

Refers to elements of the expectancy theory of motivation, which suggests that individuals are motivated to act in a certain way based on their expectation that the act will be followed by a desired outcome.