Which of the following describes actual trends in the U.S. labor force participation rate?
A) The labor force participation rate of adult men has risen since 1950.
B) The labor force participation rate of adult women has risen since 1950.
C) The labor force participation rate of adult men not in school, but too young to retire has risen since 1950.
D) The labor force participation rate of adult women has fallen since 1950.
E) The labor force participation rate of all adults has fallen since 1950.
B
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Real GDP in the country of Oz is growing at 5 percent and its population is growing at 2 percent. In the country of Lilliput, real GDP is growing at 4 percent and its population is growing at 0.5 percent. Thus,
A) real GDP per person in Oz is growing at a faster rate than in Lilliput. B) real GDP per person in Lilliput is growing at a faster rate than in Oz. C) real GDP per person in Lilliput is growing at the same rate as in Oz. D) real GDP per person in Lilliput is growing at a rate that is not comparable to that in Oz. E) We need more information to determine if real GDP per person in Lilliput is growing faster or slower than real GDP per person in Oz.
If an estimated regression explains none of the variation, R2 will be
A) 0. B) between 0 and 1. C) 1. D) unable to determine with the information given.
A merger between two companies in unrelated fields of business
A) will always lead to economies of scale. B) will generally increase the value of the unified firm compared to the value of the two companies before the merger because of the benefits of diversification. C) may not have any synergistic effects. D) will necessarily lead to an increase in the market power of the merged company.
Helen is a 19-year-old single mother of two. She has no car and works at a minimum wage job. She receives some assistance from the government, but every time she earns $1, she loses $1 in government assistance. Helen is caught in the poverty trap, which means that:
a. she is taxed at the higher poverty-line rate. b. making more money does not lead to having more money. c. because she accepts government assistance, she is getting lazier. d. unless she continues to work, her children will go into foster care.