The Unemployment Rate Is 6 Percent

question 313

Essay

The unemployment rate is 6 percent. If the population is 300 million, and the number unemployed is 6 million and the number employed is 94 million, what is the size of the labor force?

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Definitions:

Value of Marginal Product

The increment in revenue a firm realizes from employing one additional unit of input, holding all other factors constant.

Output

The quantity of goods or services produced by a company, sector, or economy.

Diminishing Marginal Product

A principle stating that as additional units of a variable input are added to a fixed input, the marginal product of the variable input eventually decreases.

Production Function

Describes the relationship between inputs used in production and the resulting output.