If the People Who Take Early Retirement Are Not Counted

question 307

Multiple Choice

If the people who take early retirement are not counted in the working-age population, then

• A) the unemployment rate would be lower.
• B) the labor force participation rate would be less.
• C) the unemployment rate would be higher.
• D) the labor force participation rate would be higher.

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Definitions:

Political Economy

An interdisciplinary branch that studies the relationship between individuals, societies, and governments, focusing on how economic theories affect policies and social issues.

Comparative Advantage

The capacity of a person, business, or nation to create a product or offer a service with a lesser opportunity cost compared to its rivals.

Adam Smith

A Scottish economist and philosopher, known as the "father of modern economics" for his influential works on the nature and causes of the wealth of nations, promoting the idea of free market economies.