CFA Practice Question

There are 539 practice questions for this study session.

CFA Practice Question

Suppose that you have a college degree but the only work that you can find is driving a taxicab. What is this called?

A. Frictional unemployment
B. Structural unemployment
C. Cyclical unemployment
D. Underemployment
E. A discouraged worker
Correct Answer: D

A part-time worker who wants to work full-time or a worker who is working at a level below his or her skill level is called underemployed.

User Contributed Comments 11

User Comment
yanpz Driving Taxi is a part-time job? under skill level too... UNDEREMPLOYED
choocha ...but the statement does not imply that you ARE (1) driving the cab
and
(2) doing so pat-time!!!
I agree that if you were driving it you aould be underemployed but is it not possibly due to informational inefficiency (frictional)? Or possibly structural?? A degree does not imply its usefulness or demand...
Nightsurfer If your degree is in Philosophy driving a cab might be the best you can do.
SkinsFan No, the best answer available is a discouraged worker.
Masterkang conclusion: for Philosophy students E may be the right answer. For people like us, though, D is the correct answer.
bobert E is never the answer to this question. Discouraged workers don't look for jobs, period. By looking for the taxi job is making by definition making the person unemployed, not discouraged.
ambar I think in the current recession, underemployment is the "in vogue" thing.
8thlegend It's called College degree fail.
jonan203 it's called "liberal arts"
ldfrench WE WILL NEVER HAVE TO DRIVE CABS BECUZ WE LOVE FINANCE RIGHT U GUYZ?!
Yrazzaq88 I'd rather be a full-time stripper than be a cab driver.
You need to log in first to add your comment.