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Reading 22: Monitoring Jobs and the Price Level - LOS a ~

Q1. When economists are speaking of the labor-force participation rate, they are referring to which of the following? The labor-force participation rate is the percentage of the:

A)   working-age population who are working.

B)   labor force who are new entrants (less than one year of work experience).

C)   working-age population who are either working or actively looking for work.

Q2. Bradley works a 14-hour-per-week job as a bartender at McQuigley’s Pub. Maddeline left her position at a commercial bank to raise her two-year old daughter. How would these individuals be classified from the viewpoint of employment statistics?

        Bradley               Maddeline

A)    Employed            Not in labor force

B)    Employed           Employed

C)    Not in labor force       Not in labor force

Q3. Which of the following is the most accurate definition of the unemployment rate? The unemployment rate is the number of:

A)   unemployed individuals divided by the number of employed individuals.

B)   unemployed individuals divided by the total labor force.

C)   individuals employed divided by the number of people who are unemployed and retired.

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