Describe the difference between the employment rate and the labor force participation rate (LFPR). Under what circumstance would the two be equal to one another?
The employment rate is a measure of the percentage of the civilian noninstitutional population that is employed and is calculated by taking the number of people employed and dividing by the civilian noninstitutional population. The LFPR is a measure of the percentage of the civilian noninstitutional population that is in the civilian labor force and is calculated by taking the number of people in the labor force (which includes both the employed and the unemployed) and dividing by the civilian noninstitutional population. Therefore, the difference between the two is that the LFPR includes both the employed and the unemployed, while the employment rate only includes the people who are employed. The only way that the employment rate and the LFPR would be equal to one another would be for there to be no unemployed workers.
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A) more; decreasing B) fewer; increasing C) the same number of; not affecting D) fewer; decreasing E) more; increasing
Which of the following attributes of trade explain why it is important for economic prosperity?
a. Trade moves goods from people who value them less to people who value them more. b. Trade makes it possible to produce a larger output as a result of lower per unit costs that often accompany large-scale production. c. Trade makes it possible to produce a larger output as a result of gains from division of labor and specialization. d. All of the above.
If the labor force grows at a faster rate than the number employed, the
a. unemployment rate will fall. b. unemployment rate will rise. c. labor force participation rate will fall. d. employment rate will rise.
Our basic money supply is
A. M1. B. M2. C. M3. D. M4.