Suppose the Population of Tiny Town Is 100 People and the Working

question 234

Multiple Choice

Suppose the population of Tiny Town is 100 people and the working age population is 70. If 10 of these people are unemployed, the unemployment rate in Tiny Town is

• A) 10/80 × 100.
• B) 10 percent.
• C) 10/70 × 100.
• D) There is not enough information provided to calculate the unemployment rate.

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Definitions:

Derived Demand

Refers to the demand for a good or service that results from the demand for another good or service.

Productive Resource

Assets, materials, or inputs used in the production of goods and services, including labor, capital, and natural resources.

Factor Demand

The demand for production inputs (such as labor, land, and capital) by firms, determined by their need to produce goods and services.

Wage Rate

indicates the amount of money paid per unit of time worked, typically per hour or year, influencing labor costs and economic decisions.