Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
It decreases the unemployment rate by reducing the number of unemployed individuals.
B
It increases the unemployment rate as they are still considered unemployed.
C
It has no impact since they are not actively seeking work.
D
It reflects a healthier economy as more people leave the labor force.
Understanding the Answer
Let's break down why this is correct
Answer
When discouraged workers leave the labor force, it can lower the unemployment rate, but this doesn't mean that the job market is better. Discouraged workers are people who have given up looking for a job because they feel it’s too hard to find one. When they stop searching, they are no longer counted as unemployed, which makes the unemployment rate go down. For example, if a group of people stops looking for work because they haven't found jobs after many attempts, the statistics will show fewer unemployed, even though many still want to work. This can create a misleading picture of how healthy the job market really is, as it doesn't account for those who are still struggling to find employment.
Detailed Explanation
When discouraged workers leave the labor force, they are no longer counted as unemployed. Other options are incorrect because Some might think that leaving the labor force keeps them counted as unemployed; It's a common belief that it has no effect since they aren't looking for jobs.
Key Concepts
Unemployment Rate Calculation
Discouraged Workers Impact
Labor Market Trends
Topic
Unemployment and Labor Force Dynamics
Difficulty
easy level question
Cognitive Level
understand
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