Suppose There Are Currently 100 People Unemployed, 1500 People Employed

question 250

Multiple Choice

Suppose there are currently 100 people unemployed, 1500 people employed, 1600 people in the labor force, and 2000 people in the working age population. The unemployment rate equals 100 times

• A) 100/2000.
• B) 1500/2000.
• C) 100/1600.
• D) 100/1500.

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Definitions:

Monopolistically Competitive Industry

Describes a market structure where many companies sell products that are similar but not identical, allowing for significant differentiation and some pricing power.

Excess Capacity

The situation in which a firm's actual production is less than its maximum possible production capacity.

Economic Profits

The surplus left after a firm has paid all its costs, including both explicit costs like wages and rent and implicit costs like the opportunity costs of capital.

Monopolistic Competitor

Refers to a market structure where many companies sell products that are similar but not identical, allowing them some power to set prices.