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Which of the Following Is True of Official Unemployment Statistics

Question 107

Multiple Choice

Which of the following is true of official unemployment statistics?


A) They tend to understate the real amount of unemployment because individuals receiving unemployment benefits are counted as employed.
B) They tend to understate the real amount of unemployment because "discouraged workers" are not counted as unemployed.
C) They include both frictional and structural unemployment,but not cyclical unemployment.
D) They tend to overstate the real amount of unemployment because workers who are involuntarily working part-time are counted as being employed.
E) They tend to understate the real amount of unemployment because many people in the underground economy declare themselves unemployed whereas they are actually fully employed.

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