- CFA Exams
- CFA Level I Exam
- Topic 2. Economics
- Learning Module 11. Understanding Business Cycles
- Subject 6. Unemployment
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?
B. Structural unemployment
C. Cyclical unemployment
D. Underemployment
E. A discouraged worker
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. |