Question

In: Economics

Which of the following statements correctly describe discouraged workers? (If none of the choices apply, leave...

Which of the following statements correctly describe discouraged workers? (If none of the choices apply, leave all of the checkboxes blank.) Check all that apply.

A)They are dissatisfied with their current jobs and are considering quitting.

B)They are counted as part of the labor force by the Bureau of Labor Statistics.

C)They have given up on looking for a job.

D) They are employed workers who want to earn higher wages.

Solutions

Expert Solution

The answer is

C)They have given up on looking for a job.

Unemployment rate measures the proportion of the unemployed in the total workforce. Discouraged workers are individuals who have no work, who were searching for a job at some stage, but then became discouraged and stopped searching. Discouraged workers are not unemployed as the formal unemployment rate counts, but they are out of the workforce. Therefore, the formal unemployment rate could be underestimated by the proportion of those individuals who are discouraged employees.

Rahul Sunny answered 2 years ago
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