The Unemployment Rate Review

What is the primary difference between discouraged workers and unemployed workers?

• Discouraged workers have never had a job
• Unemployed workers are actively seeking work
• Discouraged workers are part-time employees
• Unemployed workers have more experience
• Discouraged workers receive benefits

Which of the following best describes an underemployed worker?

• Someone who has stopped looking for work
• Someone working fewer hours than desired
• Someone who is fully unemployed
• Someone who is retired
• Someone who works multiple jobs

How are discouraged workers reflected in labor statistics?

• They are counted in the main unemployment rate
• They are not counted in labor force calculations
• They are counted as employed workers
• They are counted as part-time workers
• They are counted as self-employed

If a country has 1000 workers in the labor force, 100 unemployed, and 50 discouraged workers, what is the official unemployment rate?

• 15%
• 10%
• 12.5%
• 7.5%
• 5%

Answer explanation

discourage workers are not included in the unemployment rate.

Which term describes workers who have a college degree but work in jobs that don't require one?

• Discouraged workers
• Structurally unemployed
• Underemployed workers
• Cyclically unemployed
• Seasonally unemployed

What is a key economic impact of having a large number of discouraged workers?

• Increased productivity
• Higher GDP growth
• Hidden economic weakness
• Lower inflation rates
• Improved wage rates

How do underemployed workers affect economic measurements?

• They make unemployment appear lower than actual job market weakness
• They are excluded from all calculations
• They increase the official unemployment rate
• They are counted as fully unemployed
• They have no effect on measurements

If an engineer takes a job as a retail clerk because they can't find engineering work, this is an example of:

• Cyclical unemployment
• Structural unemployment
• Skills underemployment
• Voluntary unemployment
• Frictional unemployment

What is the labor force participation rate?

• The percentage of unemployed workers in the economy
• The percentage of the adult population that is in the labor force
• The percentage of part-time workers in the economy
• The percentage of discouraged workers in the workforce
• The percentage of retired workers in the economy

What is a key criticism of the official unemployment rate?

• It includes too many part-time workers
• It overstates the level of joblessness
• It understates the level of joblessness
• It counts retired individuals
• It excludes international workers