Which of the Following Causes the Official Measure of the Unemployment

question 102

Multiple Choice

Which of the following causes the official measure of the unemployment rate to understate the true extent of joblessness?

• A)Many full-time workers really want to be part-time workers.
• B)People who collect unemployment benefits report themselves to be searching for a job.
• C)Discouraged workers are not counted as unemployed.
• D)Discouraged workers are counted as unemployed.

---

Definitions:

Straight-Line Method

A method of calculating depreciation by evenly distributing the cost of an asset over its expected useful life.

Premium

The amount paid for insurance coverage or the amount above the nominal value in finance.

Actuarial Information

Actuarial information involves data and statistics used by actuaries to assess risks and calculate insurance premiums, pension contributions, and other financial products.

Future Value

The estimated amount of money an investment is projected to grow to, based on a specified rate of interest or return over a set period.