Why Might the Official Unemployment Rate Be an Understatement of Actual

question 90

Multiple Choice

Why might the official unemployment rate be an understatement of actual levels?

• A)Because both part-time workers and discouraged workers are included.
• B)Because both part-time workers as well as those collecting EI but not actively seeking work are included.
• C)Because people working in the underground economy are not included.
• D)Because part-time workers are considered employed,and discouraged workers are not considered unemployed.
• E)Because those not actively seeking work while collecting EI benefits and those in the underground economy are included.

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Definitions:

Data Set

A collection of related sets of information that are composed of separate elements but can be manipulated as a unit by a computer.

Residuals

The differences between observed values and the values predicted by a model in statistical analysis.

Scatterplots

Graphical representations using dots to show the relationship between two variables, each dot representing an observation in the dataset.

Linear Model

An approach in statistics that assumes a straight-line relationship between the dependent and one or more independent variables.