Suppose the Official Rate of Unemployment Reported by Statistics Canada

question 44

Multiple Choice

Suppose the official rate of unemployment reported by Statistics Canada declines from one month to the next from 7.5% to 7.2%,but we also know that the stock of unemployed workers has not changed.How is this possible?

• A)The labour force has declined due to out-migration of working-age people.
• B)The labour force has grown as previously discouraged workers re-start their job-search process as unemployed individuals.
• C)Some individuals who were previously outside the labour force have joined the labour force and immediately found jobs.
• D)We have gone from a month with high seasonal unemployment to a month with low seasonal unemployment.
• E)We have gone from a month with low seasonal unemployment to a month with high seasonal unemployment.

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Definitions:

Issued

Refers to the act of distributing or making available something, such as stocks or bonds, to the public for the first time.

Cumulative Preferred Stock

A type of preferred stock where dividends accumulate if not paid in a given year, requiring payment of missed dividends before common shareholders can receive dividends.

Common Stock

Equity securities that represent ownership in a company, usually accompanied by voting rights and potential for dividends.

Dividends

Money distributed from a company's profits to its owners or investors.