When an Individual Who Has Not Been Working but Has

question 191

Multiple Choice

When an individual who has not been working but has been looking for work decides to terminate the search process, the official unemployment rate

• A) will fall.
• B) will remain unchanged.
• C) will rise.
• D) may fall or rise depending on whether or not the individual resumes his education.

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Definitions:

Demand for Labor

the quantity of workers that employers are willing and able to hire at a given wage rate in a given time period.

Supply of Labor

The total hours that workers are willing and able to work at a given wage rate, over a certain time frame.

Supply of Capital

The total resources, financial and otherwise, available for investment in production.

Dual Labor Market

describes an economy divided into two segments: a primary sector with secure, well-paid jobs, and a secondary sector with insecure, poorly paid jobs.