The unemployment rate Instructions: In order to receive full credit, you must ma

Question

The unemployment rate Instructions: In order to receive full credit, you must make a selection for each option. For correct answer(s), click the box once to place a check mark. For inco underestimates unemployment because of discouraged workers underestimates unemployment because of voluntary unemployment. overestimates unemployment because of voluntary unemployment overestimates unemployment because of discouraged workers References Worksheet Difficulty: 02 Medium Leaming Objective: 24-04 Relate

Explanation / Answer

Answer : The correct options are A and C.

Discouraged workers are those workers who are already unemployed and not searching job actively. Hence discouraged workers are not included in labour force which underestimates the unemployment rate.

On the other side, voluntary unemployment means that the workers who are already employeed or quit the current job and finding other job to get higher position or higher salary. Voluntary unemployment is included in labour force which overestimate the unemployment rate.

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