Paradox Questions - - Question 49

At the beginning of each month, companies report to the federal government their net loss or gain in jobs over the pa...

Ashley-Tien July 10, 2018

Eliminatation

How do we eliminate C? I thought because people who lost their jobs started their own businesses, that would account for why the number of jobs lost was underestimated. How do we arrive at D?

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MichelleRod July 30, 2018

Hey @ashleytien thanks for your question

The stimulus tells us that companies report their jobs numbers to the federal government. Recently-fired employees starting their own businesses would not help resolve the discrepancy because those new companies would have to report tot he government just like everyone else, so those jobs would be accounted for. That's why we can eliminate C.

On the other hand, if companies abruptly cease ALL operations, that also means they stop reporting to the government and all the jobs lost by the downfall of that company are not accounted for in the government's numbers