8. The statistical definition of unemployed is not without ambiguity. Some persons are not counted as unemployed
Question:
8. The statistical definition of "unemployed" is not without ambiguity. Some persons are not counted as unemployed because they are currently too discouraged to "actively seek employment." Others are counted even though they may be only casually seeking employment. Many in the latter category have a strong incentive to reject all but the most attractive employment opportunities since acceptance of a job would result in the elimination (or substantial reduction) of the transfer payments that they are currently receiving. As a result of these ambiguities, an increasing number of economists believe that the rate of employment may be a more objective and accurate indicator of current employment opportunities.
Step by Step Answer:
Economics Private And Public Choice
ISBN: 9780123110404
2nd Edition
Authors: James D Gwartney; Richard Stroup; A H Studenmund