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

question 93

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 labor-force participation rate would be lower.

---

Definitions:

Owner's Equity

The residual interest in the assets of an entity after deducting liabilities, representing the ownership interest.

Drawing Account

An account used by a sole proprietor to track money withdrawn from the business for personal use.

Total Assets

The sum of all current and non-current assets owned by a company, representing its overall value.

Cash Collection

The process of receiving and processing payments from customers, including cash, checks, and credit card payments.