Suppose the Population (Age 16 and Over) of Peru Is

question 44

Multiple Choice

Suppose the population (age 16 and over) of Peru is 400 million; 20 million are unemployed, and 230 million hold jobs. What are the rates of unemployment and labor force participation of Peru?

• A)Unemployment is 8 percent, and labor force participation is 62.5 percent.
• B)Unemployment is 8.7 percent, and labor force participation is 92 percent.
• C)Unemployment is 8.7 percent, and labor force participation is 62.5 percent.
• D)Unemployment is 5 percent, and labor force participation is 57.5 percent.

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Definitions:

Cost Function

Represents the relationship between the cost of producing a good and the quantity produced, highlighting how costs change with changes in production volume.

Inverse Demand Function

A mathematical representation that expresses price as a function of quantity demanded, illustrating how price can influence the quantity of a good that consumers are willing to buy.

Stackelberg Leader

In economic theory, a firm in a duopoly that sets its output level first, influencing the subsequent decision of another firm.

Cournot Duopoly

A Cournot Duopoly is a market structure where two companies control the entire market for a particular product or service, and each firm chooses its output level assuming that the other firm's decision is fixed.