Question

The data in this table is used in questions 1-6.

Category	Millions
total population	310
population 16 and above	250
employed	192
unemployed	8.00
structurally unemployed	4.00
frictionally unemployed	2.00
unemployed more 27 weeks or more	2.00
marginally attached workers	2.00
discouraged workers	1.00
workers who are part time but want full time	0.10

In this table you'll find numbers for the discouraged workers and the marginally attached. Do the values above make sense -- could they happen in an actual economy?

Group of answer choices

yes

no

Answer 1

Ans) Unemployment is when a person is not currently working but is actively looking for job.

Marginally attached workers are those who are not actively searching for job but are willing to work.

Discouraged workers are subset of marginally attached workers. Who have looked for work for sometime and are now discouraged and have stopped looking for job.

Marginally attached workers and discouraged workers are not included in labor force as they are neither employed nor unemployed.

Employed people are those who work for profit or pay. It includes both part time and full time workers.

Frictional unemployment is when person is searching for work or has left one job to find another.

Structural unemployment is when there is a mismatch between skills provided and skill required.

Natural rate of unemployment is present in every economy due to presence of Frictional and structural unemployment.

Yes. These figures makes sense. As different categories of people are considered while calculating different types of unemployment like U1, U2, U3, U4, U5 and U6.

Government reports U3 unemployment rate which includes only unemployed and employed workers, it does not separately consider those who are working part time or are marginally attached. It simply include part time workers as employed and marginally attached workers as out of labour force. This unemployment, hence, does not reflect the true picture of the economy.

Ans÷ YES.