Unit 3 DQ1: Unemployment Some people argue that the official unemployment rate u
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Unit 3 DQ1: Unemployment Some people argue that the official unemployment rate understates true unemployment, while others argu that it overstates true unemployment. 1. Exp high or too low lain each of these positions, giving some examples of what might cause the official rate to be either too Some people argue that the official unemployment rate understates true unemployment because it does not consider people who are unemployed as not included in the labor force such as homemakers, discouraged workers who are available for a job but no actively looking for work because they believe that there not work opportunities for them. this situation increases when the country goes through a recession period, and the BLS also consider part-time workers who desire to work full-time but it also helps to make the employment situation seem better than it really is. Others may argue that it overstates the true unemployment by using the household survey where the BLS cannot verify the responses from the interview of its selected people who just say that are unemployed and have been keeping for a job to remain eligible for government programs that support financially unemployed people. Others may be engaged in illegal activities such as drug dealing or may be engaged in legal activity but they prefer to conceal in order to avoid paying taxes 2. Personally reflect on whether you think we should make any changes to how we calculate unemployment? If so, what would you propose? (Support your answers with academic journal articles.) Yes, I think they should consider people known as the discouraged workers who are available to work but actively looking for a job in the true unemployment because they don't really have a job they are just relying on government payments. when the BLS makes the survey it should ask them evidence of what job they have been looking for to be included in the labor force and to remain eligible for government support. this is gonna force them to find a job and reduces the unemployment rate gradually 3.Scenario: What if academic inflation caused the creation of a law that required an Associate's degree to earn minimum wage. How would that affect the economy and you personally? If the inflation establishes a law that requires an associate's degree to earn minimum wage, it would affect the economy drastically. many firms hire non-skilled people at minimum wage such as working in factories supermarket. if you strive for getting an associate's degree and receive the minimum wage, it is not gonna be fair. The cost of education is high in the united states and this situation is gonna force most currently employed people to go to school to get their associate without earning no money because it does not match the conditions for applying for a job.Explanation / Answer
The first answer explains wheter unemployment is understated or overstated.
The explaination given is perfectly in line with the arguments and counter arguments which are generally given about unemployment statistics. It does lack an argument that underemployed are also considered as employed hence also understated. It is also true that people may not give correct information and also people involved in parallal economy also do not give correct information.
The second answer asks about ways to calculate correct rate of unemployment.
The solution given can be better. Biometric attendance in all types of jobs can be a solution. Also better data collection methods and sample size should be proper to make any analysis.
The third question explain whether an associate degree should be mandatory to get minimum wages.
I think analysis can also include social benefits that education provides to the socity which are far better than its costs as education is a merit good. Human capital is a supply side policy and a long term solution to ensure sustianable economic growth.
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