If the Number of Discouraged Searchers Decreases Because Many of Them

question 41

Multiple Choice

If the number of discouraged searchers decreases because many of them start to look for work, everything else remaining the same, then the

• A)unemployment rate will increase.
• B)employment-to-population ratio will decrease.
• C)labour force participation rate will increase.
• D)labour force participation rate will decrease.
• E)both A and C

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Definitions:

Stock Options

Financial instruments that give the holder the right, but not the obligation, to buy or sell a stock at a predetermined price within a specific time frame.

Owners' Interests

The equity interest held by shareholders in a corporation, reflecting their claim on the company's assets and earnings.

Complex Capital Structure

A situation where a company has multiple forms of equity, such as common and preferred shares, which can affect earnings per share calculations.

GAAP

Generally Accepted Accounting Principles, which are a common set of accounting rules and standards used in the United States for financial reporting.