If 20 Million Workers Are Unemployed and 180 Million Workers

question 8

Multiple Choice

If 20 million workers are unemployed and 180 million workers are employed, then the unemployment rate is

• A) 10%.
• B) 11.1%.
• C) 18%.
• D) 80%.

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Definitions:

Long-Run Equilibrium

A state in which all factors of production and costs are variable, and firms in a competitive market have no incentive to enter or exit because they are earning normal profit.

Monopolistically Competitive Industry

An industry characterized by many firms offering products that are similar but not perfect substitutes, allowing for some degree of market power.

Monopolistic Competition

A market structure in which many companies sell products that are similar but not identical, allowing for competition among firms.

Demand Curve

A chart that illustrates the correlation between a product's price and the amount consumers want to buy.