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QUESTION:
Which of the following statements correctly describe discouraged workers? (If none of the choices apply, leave all of the checkboxes blank.) Check all that apply.
The following table contains U.S. employment information from August 2018.
Civilian PopulationEmployedUnemployedDiscouraged
(Persons 16 years old and over)(Persons)(Persons)(Persons)
258,066,000155,604,000 6,197,000434,000
The Bureau of Labor Statistics has several measures of joblessness in addition to the official unemployment rate. One alternative is the U-4 measure of labor underutilization, which is calculated as follows:
U-4 = 100×Unemployed+DiscouragedLabor Force + Discouraged
Fill in the following table by calculating the official unemployment rate and the U-4 measure of labor underutilization.
Official Unemployment RateU-4 Measure of Labor Underutilization
(Percent)(Percent)
        
The official unemployment rate and the U-4 measure of labor underutilization are two different measures of joblessness in the economy.
If the Bureau of Labor Statistics were to include discouraged workers in the official unemployment rate, the reported unemployment rate would    .

ANSWER:

Which of the following statements correctly describe discouraged workers? (If none of the choices apply, leave all of the checkboxes blank.) Check all that apply.
Correct
Correct
Correct
Correct
Points:
1 / 1
Close Explanation
Explanation:
Any jobless person who has not looked for work in the past 4 weeks is not in the labor force according to the Bureau of Labor Statistics (BLS). Some of these jobless people who are not in the labor force indicate that they'd like to have a job and are available for work. The BLS classifies such people as marginally attached workersDiscouraged workers are marginally attached workers who give a job-market-related reason for giving up on their job search. Typically, discouraged workers give up on their search because they feel that there are no current opportunities for them in the labor market.
The following table contains U.S. employment information from August 2018.
Civilian PopulationEmployedUnemployedDiscouraged
(Persons 16 years old and over)(Persons)(Persons)(Persons)
258,066,000155,604,000 6,197,000434,000
The Bureau of Labor Statistics has several measures of joblessness in addition to the official unemployment rate. One alternative is the U-4 measure of labor underutilization, which is calculated as follows:
U-4 = 100×Unemployed+DiscouragedLabor Force + Discouraged
Fill in the following table by calculating the official unemployment rate and the U-4 measure of labor underutilization.
Official Unemployment RateU-4 Measure of Labor Underutilization
(Percent)(Percent)
3.83  Correct 4.09  Correct 
Points:
1 / 1
The official unemployment rate and the U-4 measure of labor underutilization are two different measures of joblessness in the economy.
If the Bureau of Labor Statistics were to include discouraged workers in the official unemployment rate, the reported unemployment rate wouldincrease  Correct .
Points:
1 / 1
Close Explanation
Explanation:
The unemployment rate is the number of unemployed persons divided by the labor force. The labor force is the sum of employed and unemployed workers; in this case, the labor force is 155,604,000+6,197,000=161,801,000. Therefore, the unemployment rate is 6,197,000161,801,000×100%=3.83%.
The U-4 measure of labor underutilization adds discouraged workers to the ranks of the unemployed (and, thus, to the labor force):
U-4 = 100×6,197,000+434,000161,801,000+434,000
 = 4.09%
If discouraged workers were included in the official unemployment rate, the reported unemployment rate would rise. Similarly, excluding discouraged workers from the official measure of unemployment may mask the true extent of underemployment in the economy.

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