The Presence of Discouraged Workers

question 12

Multiple Choice

The presence of discouraged workers:

• A)increases the size of the labour force, but does not affect the unemployment rate.
• B)reduces the size of the labour force, but does not affect the unemployment rate.
• C)may cause the official unemployment rate to understate the amount of unemployment.
• D)may cause the official unemployment rate to overstate the amount of unemployment.

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Definitions:

Marginal Utility

Marginal utility refers to the extra satisfaction or benefit a consumer receives by consuming an additional unit of a good or service.

Total Utility

The complete gratification or advantage gained from using a specific quantity of a product or service.

Marginal Utility

The additional satisfaction or utility that a consumer receives from consuming one more unit of a good or service.

Utility-maximizing

Utility-maximizing refers to a principle in economics where individuals or businesses seek to achieve the highest level of satisfaction or profit from their decisions, given their resources and constraints.