The Presence of Discouraged Workers

question 2

Multiple Choice

The presence of discouraged workers:

• A) increases the size of the labor force but does not affect the unemployment rate.
• B) reduces the size of the labor force but does not affect the unemployment rate.
• C) may cause the official unemployment rate to understate the true amount of unemployment.
• D) may cause the official unemployment rate to overstate the true amount of unemployment.

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Definitions:

Citizen

A legally recognized subject or national of a state or commonwealth, either native or naturalized.

Limited Liability Company

A company framework that unites the limited liability aspect of a corporation with the pass-through tax advantages seen in partnerships and sole proprietorships.

Foreign Investors

Individuals or entities from one country investing in assets or businesses located in another country.

Limited Liability Company

A business format that links the corporation's limited liability feature with the tax efficiency of pass-through in partnerships or sole proprietorships.