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:

Training and Development

Organized educational programs aimed at enhancing the skills, knowledge, and competencies of employees to improve their job performance.

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A forecast that becomes a reality through a cycle of positive reinforcement between one's actions and convictions.

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A psychological phenomenon where low expectations by superiors lead to a decrease in performance by subordinates.