- CFA Exams
- CFA Level I Exam
- Study Session 4. Economics (1)
- Reading 15. Understanding Business Cycles
- Subject 3. Unemployment
CFA Practice Question
Discouraged workers are ______
A. discouraged because their current employment compensations are low; they believe deserve higher wages or salaries.
B. workers whose productivities are lower than average workers.
C. not working, and not even officially unemployed.
Explanation: Discouraged workers give up looking for work since they believe that additional job searches would be useless. They are therefore no longer counted as unemployed. This is one of unemployment's measurement problems.
User Contributed Comments 4
User | Comment |
---|---|
cswin | they are not in labor force |
scprior | A is frictional |
Yrazzaq88 | Basically, they are a waste to society. The potheads in couch potato mode. |
farhan92 | bit harsh that^ |