Question

The accuracy of the unemployment rate is criticized because?

a. unemployed homemakers and students who are not actively seeking employment are not included in the number of unemployed people.
b. people who would like to work but have given up trying to find work are not included in the number of unemployed people.
c. it fails to indicate how many people work at more than one job.
d. people under 16 years of age and over 70 years of age are excluded from the data.
e. the Labour Force Survey does not include all the households and therefore, is very inaccurate.

Answer 1

The accuracy of the unemployment rate is criticized due to several factors, including the exclusion of certain groups and the limitations of the survey method used. The correct answer is d. people under 16 years of age and over 70 years of age are excluded from the data.

Step-by-step explanation:

The accuracy of the unemployment rate is criticized for several reasons:

1. Unemployed homemakers and students who are not actively seeking employment are not included in the number of unemployed people. This means that individuals who may desire to work but are not actively searching for a job are not accounted for.
2. People who would like to work but have given up trying to find work are also not included in the unemployment rate. These individuals, known as discouraged workers, have stopped looking for employment due to various reasons.
3. Another criticism is that the unemployment rate fails to indicate how many people work at more than one job. This means that individuals who have multiple jobs are not fully represented in the unemployment rate.
4. People under 16 years of age and over 70 years of age are excluded from the data. This age limitation can result in an incomplete picture of the overall joblessness.
5. Lastly, the Labour Force Survey does not include all households, which can lead to inaccuracies. Not every household is surveyed, which may result in not capturing the true unemployment rate.