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

question 138

Multiple Choice

Suppose the population (age 16 and over) of Columbia is 40 million; 2 million are unemployed, and 23 million hold jobs. What are the rates of unemployment and labor force participation of Columbia?

• 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:

Equity Multiplier

A financial leverage ratio that measures the portion of a company's assets financed by its shareholders' equity.

Total Asset Turnover

An analysis ratio that evaluates the effectiveness of a corporation's assets in producing sales turnover.

Liquidity Ratio

Financial metrics used to assess a company's ability to meet its short-term obligations using its most liquid assets.

Net Working Capital Turnover

A ratio that measures how effectively a company uses its net working capital to generate sales.