Explain how discouraged workers either overstate or understate the unemployment problem.
What will be an ideal response?
Discouraged workers are those who would like a job but have given up the search. Because they are not actively seeking employment, discouraged workers are not part of the labor force and are not included in the unemployment statistic. The existence of discouraged workers tends to understate the unemployment problem.
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To the investor, stocks are riskier than bonds because
A. interest rates fluctuate more than stock prices. B. dividends and capital gains depend on profits. C. speculators manipulate stocks but not bonds. D. dividends are taxed twice.
Which United States President is most closely identified with the Great Depression?
a. Calvin Coolidge. b. Herbert Hoover. c. Franklin Roosevelt. d. Theodore Roosevelt. e. Richard Nixon.
The demand curve facing the monopolistically competitive firm is:
A. flat. B. vertical. C. U-shaped. D. None of these statements is true.
When Karen buys eight units of a particular good or service, _______________.
A. she has no consumer surplus B. she has a consumer surplus C. there is no way of knowing whether she has a consumer surplus