Suppose That Some People Report Themselves as Unemployed When, in Fact

question 86

Multiple Choice

Suppose that some people report themselves as unemployed when, in fact, they are working in the underground economy. If these persons were counted as employed, how would the labour statistics change?

• A) The unemployment rate and the labour-force participation rate would be higher.
• B) The unemployment rate and the labour-force participation rate would be lower.
• C) The unemployment rate would be higher, and the labour-force participation rate would be lower.
• D) The unemployment rate would be lower, and the labour-force participation rate would be unaffected.

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Definitions:

World Population

The total number of living humans on Earth at a given time, which affects resource demand, environmental sustainability, and global policies.

An Essay on the Principle of Population

A work by Thomas Malthus arguing that population growth would outpace agricultural production, leading to widespread poverty and famine unless controlled by societal measures.

Thomas Malthus

An 18th-century British economist known for his theory on population growth, which posits that population increases geometrically while food supply increases arithmetically.

Total Fertility Rates

The average number of children that would be born to a woman over her lifetime, given current birth rates.