A discouraged worker is normally classified in labour statistics as a person who
Correct answer: A. is outside the labour force because the person stopped seeking work
- A. is outside the labour force because the person stopped seeking work
- B. is unemployed because the person is actively seeking a job
- C. is employed part time because the person wants full-time work
- D. is included in the labour force because the person receives benefits
Explanation
A discouraged worker is available for work but has stopped actively looking because of poor job prospects. Under the standard definition, the person is therefore not counted in the labour force or official unemployment rate. Active job search is normally required for classification as unemployed.
Report an error
The more specific you are, the faster it gets fixed. A source beats an opinion.
Prefer email? support@testustad.com
About Macroeconomics
The economy is studied as a whole through national income, gross domestic product, inflation, unemployment, economic growth and business cycles. Coverage includes aggregate demand and supply, consumption and investment, money and banking, fiscal and monetary policy, exchange rates and balance of payments, which distinguishes macroeconomics from the study of individual markets.
Practise Macroeconomics
1,499 free Macroeconomics MCQs from Economics, each with the correct answer and an explanation. Unlimited attempts, no account needed.
Exams that ask Economics questions like this
Economics is on 3 papers prepared for on TestUstad, and all of them draw the same bank, so this question is worth knowing for every one of them.
More Macroeconomics questions
If a central bank raises the required reserve ratio, the immediate intended effect is to
In a simple Keynesian model, the paradox of thrift occurs when households try to save more and this leads to
Which factor most directly raises potential output in the long run?
If nominal GDP increases by 7 percent while the GDP price index increases by 4 percent, real GDP increases by approximately
Which situation best illustrates an adverse monetary policy transmission effect on investment?
In an open economy, national saving minus domestic investment is equal to the