Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
The unemployment rate will decrease because discouraged workers are not counted as unemployed.
B
The unemployment rate will increase because fewer people are looking for jobs.
C
The unemployment rate will remain unchanged as it only reflects those actively seeking work.
D
The unemployment rate will decrease because the number of employed workers has increased.
Understanding the Answer
Let's break down why this is correct
Answer
When a country has more discouraged workers, it means that people have given up looking for jobs because they feel there are no opportunities available for them. This trend affects the official unemployment rate because discouraged workers are no longer counted as part of the labor force. The unemployment rate is calculated by dividing the number of unemployed people who are actively seeking work by the total labor force, which includes both employed and unemployed individuals. For example, if a country has 100 unemployed people and 900 employed people, the unemployment rate would be 10%. However, if 50 discouraged workers stop looking for jobs, the total labor force decreases, which can make the unemployment rate appear lower, even though the overall job situation may not have improved.
Detailed Explanation
When discouraged workers stop looking for jobs, they are no longer counted as unemployed. Other options are incorrect because Some might think that fewer job seekers means more unemployment; This answer suggests that the unemployment rate stays the same.
Key Concepts
Unemployment Rate Calculation
Discouraged Workers
Labor Force Participation Rate
Topic
Unemployment and Labor Force Dynamics
Difficulty
hard level question
Cognitive Level
understand
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