When an Individual Quits His Job and Decides to Look

question 193

Multiple Choice

When an individual quits his job and decides to look for a new job immediately, the labor-force participation rate

• A) decreases.
• B) increases.
• C) stays the same.
• D) may increase or decrease, depending on the length of time he/she stays at home.

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Definitions:

Nondiscriminating Monopolist

A monopolist that charges the same price to all consumers for its product, instead of setting different prices for different customers.

Demand Schedule

A chart displaying the amounts of a product or service that buyers are prepared and able to buy at different price levels.

Production Costs

The expenses involved in the process of producing goods or services, including raw materials, labor, and overhead costs.

Pure Monopolist

A single seller in a market that produces a unique product or service without close substitutes.