Chapter 17, Problem 5AA

To determine

To choose: The suitable word that best completes the sentence.

Explanation of Solution

The suitable word that best completes the sentence is survey.

When government does survey to measure the unemployment, an accurate measure is not possible to found as not every individual in the labor force can be interviewed. Also, an accurate measure about unemployment is not found due to underground economy. People like tax evaders, gamblers and criminals do not follow the laws of government in reporting their incomes and contribute to underground economy. These incomes are not known and hence an accurate measure about unemployment is not found.

Economics Concept Introduction

Introduction:

Underground economy- The underground economy includes those people who do not follow the laws of Federal government and state. The transactions made by these people is included in this economy with respect to their reporting earnings.