The Following Table Defines Some Population and Employment Statistics for Two

question 157

Multiple Choice

The following table defines some population and employment statistics for two countries.

-Refer to the table above.If coal mines across Sweet Country were closed suddenly,and most laid-off workers felt that their skills would not allow them to find new jobs,what is likely to happen?

• A) The unemployment rate would increase.
• B) The labor participation rate would increase.
• C) Both the unemployment rate and the labor participation rate would increase.
• D) Neither the unemployment rate nor the labor participation rate would increase.

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Definitions:

Absolute Advantage

The ability to produce a good using fewer inputs than another producer

Trade Decisions

The choices made by individuals or governments regarding the import and export of goods and services, influenced by factors like costs, demand, and trade policies.

Small-Economy Assumption

An analytical approach assuming a country is small enough that its policies do not affect global markets, used to simplify economic analysis.

International Trade

The trade of products and services across national borders.