Suppose 180,000 people are employed, 20,000 people are unemployed, and 50,000 people are not in the labor force. Calculate the labor force participation rate
What will be an ideal response?
The labor force participation rate is calculated as:
× 100
The labor force is the sum of those employed plus the unemployed. This is 180,000 plus 20,000 which equals 200,000 people. The working-age population is the sum of those in the labor force and those out of the labor force. This is 200,000 plus 50,000 which equals 250,000. Substituting this information into our equation, we get:
× 100
which equals 80%.
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Which of the following explains why business owners have a strong incentive to strive for operational efficiency?
a. they recognize that operational efficiency promotes the public interest. b. since the owners are residual income claimants, increased efficiency will mean a higher income for the owners. c. if production is not conducted efficiently, the firm will ship jobs and capital out of the domestic market in order to be able to compete effectively. d. Increased operational efficiency allows the firm to receive government tax breaks.
Suppose there are four industries. Labor costs are 70 percent of total costs in industry A, 80 percent in B, 45 percent in C, and 10 percent in D. In which of these industries will a 10 percent increase in the price of labor reduce quantity demanded of
labor by the largest proportion? A) A B) B C) C D) D
Suppose that you purchased a ticket to a jazz festival for $100 from an online ticket broker. Once you arrived at the festival, you discovered that parking costs you an additional $15. In this situation, the additional $15 you pay for parking is an example of
A. marginal cost. B. an inefficient cost. C. an economic loss. D. opportunity cost.
In his book Power and Prosperity, the economist Mancur Olson theorized that a country is better off under a dictator who maintains power for a long period, such as Mobutu, than under a short-term, unstable dictatorship
Olson maintained that, while both are very undesirable forms of government, the former is less disruptive to the economy than the latter.Discuss why this assertion may or may not be true.