Terrell, an auto repair mechanic who remains unemployed because he refuses to work for less than \( \$ 1,000 \) an hour, is (1) considered frictionally unemployed. (2) an underemployed worker. (3) counted as part of the labor force. (4) not counted as part of the labor force. (5) considered as productively active.

To analyze Terrell's situation, let's break down the options based on the definitions of unemployment and labor force participation: 1. **Frictionally Unemployed**: This refers to individuals who are temporarily unemployed while transitioning from one job to another or entering the workforce. Terrell is not actively seeking jobs at lower wages, so he does not fit this category. 2. **Underemployed Worker**: This term describes individuals who are working in jobs that do not utilize their skills or who are working part-time when they desire full-time work. Terrell is not working at all, so he is not underemployed. 3. **Counted as Part of the Labor Force**: The labor force includes individuals who are either employed or actively seeking employment. Since Terrell is not seeking employment at a lower wage, he is not counted as part of the labor force. 4. **Not Counted as Part of the Labor Force**: Since Terrell is not actively seeking work (he refuses to work for less than $1,000 an hour), he does not meet the criteria to be counted in the labor force. 5. **Considered as Productively Active**: This term generally refers to individuals who are engaged in productive work. Since Terrell is not currently working, he is not considered productively active. Based on this analysis, the correct answer is: **(4) not counted as part of the labor force.**