The Unemployment Rate May Underestimate the True Extent of Unemployment

question 108

Multiple Choice

The unemployment rate may underestimate the true extent of unemployment if:

• A)​many part-time employees would like to work full-time, but are unable to get the additional work.
• B)​employees increase the number of hours they work overtime.
• C)​there are a large number of people working in the underground economy.
• D)​any of the above occur.

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Definitions:

Lower Opportunity Cost

A situation where choosing one option over another results in a lower forfeit of potential benefit from the other options.

Self-Sufficient

refers to the ability of an individual, community, or country to provide for all their needs independently, without external assistance.

Trading Partner

A country, organization, or entity with which a business or country conducts trade, sharing a mutual economic exchange.

Trade Price

The price at which goods or services are traded between parties, often wholesale prices between manufacturers and retailers.