Chapter 2: Problem 9

Underemployment means (LO5) a) the same thing as uncmployment b) underutilization of resources c) a recession d) slow cconomic growth

Short Answer

Expert verified

Underemployment means \(b)\) underutilization of resources, as it refers to a situation where a person has a job, but their skills, abilities, or qualifications are not fully utilized.

Step by step solution

Understand the term "underemployment"

Underemployment refers to a situation in which a person has a job, but it does not fully utilize their skills, abilities or qualifications. This could mean working fewer hours than desired, being overqualified for their position, or working in a lower-paying job related to their abilities or education. It can also refer to the underutilization of resources in an economy.

Go through each option and check if it matches the definition

a) the same thing as unemployment: No, because underemployment involves having a job, whereas unemployment is a state of being without a job. b) underutilization of resources: This option is in line with the definition of underemployment, as it indicates that resources, like skills, abilities, or qualifications, are not fully utilized. c) a recession: A recession is a period of negative economic growth for more than two consecutive quarters but does not specifically define underemployment. d) slow economic growth: Slow economic growth refers to a sluggish increase in the output of goods and services in an economy, which is not the same as underemployment.