Suppose There Are 10 Million Part-Time Workers and 90 Million

question 14

Multiple Choice

Suppose there are 10 million part-time workers and 90 million full-time workers in an economy.Five million of the part-time workers switch to full-time work.We can conclude that:

• A)the official unemployment rate will fall.
• B)the official unemployment rate will rise.
• C)the official unemployment rate will remain unchanged.
• D)the size of the labour force will increase.

---

Definitions:

Consumer Surplus

The separation between the ideal amount consumers are willing to spend on a service or product and their real expenditures.

Producer Surplus

The discrepancy between what producers are ready to take for a product or service and the real amount they get.

Tax

A required contribution or another kind of monetary levy imposed by a government body on a taxpayer to underpin government expenditure and different public spending initiatives.

Deadweight Loss

Deadweight loss refers to the loss in economic efficiency that occurs when the equilibrium for a good or service is not achieved or is unattainable.