Entry into and Exit from the Labor Force Are Important

question 29

Multiple Choice

Entry into and exit from the labor force are important to the determination of the unemployment rate because:

• A) more than one-half of the unemployed have only recently entered the labor force.
• B) most of the unemployed are young workers still looking for their first job.
• C) discouraged workers are counted as part of the labor force.
• D) almost one-half of all spells of unemployment end in the unemployed person's withdrawal from the labor market.

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Definitions:

Tax Liability

The total amount of tax that an individual, corporation, or other entity is legally obligated to pay to a taxing authority.

Single Person

An individual who is not married or in a romantic relationship that is formally recognized, especially with reference to legal or social status.

Full-Time Student

A status for individuals enrolled in a higher educational institution with a full course load, impacting tax credits and dependency status for taxes.

Personal Exemption

A deduction allowed by the IRS for the taxpayer, the spouse, and eligible dependents, significantly reduced and effectively eliminated with the Tax Cuts and Jobs Act for tax years 2018 through 2025.