The working-age population in Concordia was estimated to be 6.5 million in a cer
ID: 1224790 • Letter: T
Question
The working-age population in Concordia was estimated to be 6.5 million in a certain year. The country's labor department announced that the total number of unemployed people in the country had gone up to 460,000 during this year while, the total number of people out of the labor force decreased to 2,000,000. Oscar Lewis, a student of labor economics believes that the labor department data is flawed.
Which of the following, if true, would strengthen the argument that the data understates unemployment?
A.
Skilled workers who were forced to shift to part-time jobs because of an economic downturn are also considered employed.
B.
The country has high income taxes, but an inefficient tax payment monitoring system.
C.
Five percent of the country's labor force consists of legal immigrants with work permits.
D.
The labor bureau in Concordia does not consider full-time students or retirees as people in the labor force.
E.
Businesses in the country often complain about labor shortage, whether skilled or unskilled.
Explanation / Answer
Skilled workers who were forced to shift to part-time jobs because of an economic downturn are also considered employed.
The government implemented a generous welfare plan 3 years ago to support people who cannot find work
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