Question

The official unemployment rate

a. includes discouraged workers but not underemployed workers.

b. does not include discouraged workers or underemployed workers.

c. includes underemployed workers but not discouraged workers.

d. counts part-time workers as unemployed.

e. includes discouraged workers and underemployed workers.

Answer 1

Discouraged workers are those people who are unemployed and are not looking for job. The official unemployment rate does not include such people in its calculation. So, Option a. and e. are incorrect

Part time workers are counted as employed as they are receiving money for their work. So, option d. is incorrect

Underemployed workers are those workers who are highly skilled but getting under paid for their efforts. The unemployment rate still includes them as they are employed and are working currently.

Hence, Option c. is correct

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