Who among the given list of people can be categorized as “unemployed”?
Answer to Problem 1FT
A person out of work and actively searching for work
Explanation of Solution
A person can be categorized as unemployed only if he is out of work, but is willing, interested and able to work but cannot find a job. This also means that he is eagerly searching for a job. Such a person can be categorized as unemployed.
A person in prison cannot be categorized as unemployed as he would not be able to work, though he may be interested and willing.
A person who wants to work but stopped searching six months ago would not be categorized as an unemployed person but a “discouraged worker”, as he has stopped searching for a job.
A person who works part time, but who wants full-time work would not be categorized as “unemployed” but as “under-employed”.
Concept introduction:
Discouraged workers: Discouraged workers are workers who have given up looking for work but who would still like a job.
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Chapter 30 Solutions
Modern Principles of Economics
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