In a Country with a Working-Age Population of 20 Million

question 118

Multiple Choice

In a country with a working-age population of 20 million, 13 million are employed, 1.5 million are unemployed, and 1 million of the employed are working part-time, half of whom wish to work full-time. The size of the labour force is

• A)20 million.
• B)15.5 million.
• C)14.5 million.
• D)13 million.
• E)11.5 million.

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Definitions:

Marginal Costs

The increase in total cost that arises from an extra unit of production.

Average Variable Costs

The total variable costs (costs that change with output level) divided by the quantity of output produced.

Average Total Costs

The total cost of production divided by the number of units produced, indicating the cost per unit.

Average Fixed Costs

The fixed costs of production divided by the quantity of output produced; these costs do not vary with the level of output.