Problems with Interpreting the Unemployment Rate as a Measure of Labour

question 80

Multiple Choice

Problems with interpreting the unemployment rate as a measure of labour market tightness include

• A) biases in the CPI and dissatisfied workers.
• B) dissatisfied workers and discouraged workers.
• C) discouraged workers and variations in how intensively the unemployed search for work.
• D) variations in how intensively the unemployed search for work and biases in the CPI.
• E) the rental vacancy rate.

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Definitions:

Investment

The allocation of resources, usually financial, in expectation of a future return, which may include interest earnings, dividends, or appreciation in value.

Property

Legally owned items, including real estate and personal belongings, over which the owner has exclusive rights.

Present Value

The current estimation of future financial gains or cash flows, discounted by a particular return rate.

Medical Expenses

Costs incurred for the diagnosis, cure, mitigation, treatment, or prevention of disease, or for the purpose of affecting any structure or function of the body.