When 100 people who were previously looking for jobs stop looking for jobs, the
A. unemployment rate increases.
B. labor-force participation rate does not change.
C. unemployment rate does not change.
D. size of the labor force decreases.
Answer: D
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Refer to A Negative Externality Problem. Suppose there is no attempt to internalize the externality. Pigovian analysis indicates that the externality creates a deadweight loss equal to
Demand for a good is given by Q = 100 - P. The private marginal cost of production is MCP = 10 + Q. There is a $10 per unit negative production externality in this situation. a. $0 b. $25 c. $50 d. $100
A 2013 article in the Financial Times predicted that the post-2008 Eurozone debt crisis:
A) is over and the benefits from the ordeal are valuable lessons about fiscal responsibility. B) is capable of solution but far from over. The article blames the private financial sector and denies that fiscal irresponsibility is the sole cause. C) is a bellwether of the decline and eventual collapse of the euro. D) teaches us that fiscal restraint is much more important than economic performance or unemployment issues.
Is it possible for a country's nominal GDP to increase and real GDP to decrease from one year to the next?
A. No, since prices are held constant and that would be mathematically impossible. B. Yes, it would indicate a larger rise in prices relative to a decrease in output. C. No, since output is held constant and that would be mathematically impossible. D. Yes, it would indicate a larger rise in output relative to a decrease in prices.
Why is the demand curve horizontal for a perfectly competitive firm?
What will be an ideal response?