Suppose That Some People Are Counted as Unemployed When, to Maintain

question 241

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 labor force instead of as unemployed, then

• A)both the unemployment rate and labor-force participation rate would be higher.
• B)both the unemployment rate and labor-force participation rate would be lower.
• C)the unemployment rate would be lower and the labor-force participation rate would be higher.
• D)the unemployment rate would be higher and the participation rate would be lower.

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Definitions:

National Debt

is the total amount of money that a country's government has borrowed, by various means, and has not yet repaid.

Top Marginal Tax Rate

The highest tax rate applied to the last dollar of taxable income, affecting the highest income earners within a progressive tax system.

1980

A year marked by significant global events including the eruption of Mount St. Helens and the election of Ronald Reagan as the President of the United States.

Government Ownership

The possession and control over enterprises and assets by the state or government, rather than private individuals or organizations.