Scenario: Consider Country a with a Population of 2 Million

question 194

Multiple Choice

Scenario: Consider Country A with a population of 2 million people. In Country A, there are 1.5 million people employed; 0.3 million younger than 18, in school or retired; 0.1 million voluntarily unemployed; and 0.1 million people officially unemployed.
-Refer to the scenario above.If country A is at a labor market equilibrium,which of the following should be the only reason that a person is officially unemployed?

• A) There is imperfect information between employers and workers, so the person is not able to find a job.
• B) The person is not willing to work at the market clearing wage rate.
• C) The person is in school and chooses not to work.
• D) The person is retired.

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Definitions:

Argentine Peso

The official currency of Argentina, utilized in financial transactions within the country.

American Truck

A vehicle designed and manufactured typically in the United States for the purpose of transporting goods and materials.

Exchange Rate

The value of one currency expressed in terms of another currency, used when converting from one currency to another.

Rupees

The official currency of India, also used as currency in other countries such as Pakistan, Nepal, and Sri Lanka.