Question

Part-time workers who want full-time work are counted as

Question 41 options:

	A) unemployed, and therefore the official unemployment rate may understate the level of unemployment.
	B) fully employed, and therefore the official unemployment rate may overstate the level of unemployment.
	C) fully employed, and therefore the official unemployment rate may understate the level of unemployment.
	D) unemployed, and therefore the official unemployment rate may overstate the level of unemployment

Answer 1

Answer: C

Whatever employment is there -- part or full, it is treated as fully employed. In reality, part-time work doesn’t have the equivalent salary and benefit like full-time work; therefore, the part-time workers may not be happy with this job and search for full-time work; these workers must be treated as unemployed what is not actually done; therefore, the unemployment rate becomes understated.