Define the unemployment rate and labor-force participation rate. Discuss the differences between these two rates
What will be an ideal response?
The unemployment rate is defined as [(number of unemployed) ÷ (labor force)] × 100, and the labor force participation rate is defined as is [(labor force) ÷ (working-age population)] × 100. The two measures give different perspectives on the labor market. The labor force participation rate tells the percentage of the working-age population that is either working or is available for work. The unemployment rate tells the percentage of the people working or available for work (the labor force) who do not have jobs.
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Stocks change ________ whereas flows relate to ________
A) and that causes flows to change; changes that have no impact on stocks B) between points in time; changes within a given time period C) within a given period of time; changes between points in time D) only at the end of each year; amounts at a given point in time
If you are to receive a payment of $200 at the end of the first year and a payment of $250 at the end of the second year and the market interest rate is 5 percent, the present value of this income stream is
a. $400.37 b. $417.23 c. $450.00 d. $475.37 e. $490.13
If it costs the DuPont Chemical Company more to make the chemical flaxinate in the United States than it does to make it in Formosa, the Formosans must have:
a. lower demand for flaxinate. b. tariffs on flaxinate. c. inefficient markets. d. a more favorable political environment. e. an absolute advantage in flaxinate production.
The simple deposit multiplier is
A) the reciprocal of the required reserve ratio. B) always 1. C) the same as the required reserve ratio. D) different from bank to bank even if the required reserve ratio is the same for all banks.