Because There Is No Way to Account for Them, the Official

question 15

Multiple Choice

Because there is no way to account for them, the official unemployment rate does not include discouraged workers.What would happen to the unemployment rate if, because of a program that gave them new hope, all discouraged workers suddenly begin reporting themselves as ready to work?

• A)The official unemployment rate would remain unchanged.
• B)The size of the labor force would increase.
• C)The number of individuals officially in the labor force would remain unchanged.
• D)The official unemployment rate would decrease.
• E)The size of the underground economy would shrink.

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Definitions:

Price Sensitivity

The degree to which the price of a product or service affects consumers' purchasing behaviors or demand for that product or service.

Elastic

Describes a situation in economics where the demand or supply for a product changes significantly when its price changes.

Inelastic

Refers to a market for a product or service that is price insensitive; that is, relatively small changes in price will not generate large changes in the quantity demanded.

Products

Items or services offered by a business to customers, which can include physical goods, services, and digital products.