In a Country with a Working-Age Population of 22 Million,16

question 69

Multiple Choice

In a country with a working-age population of 22 million,16 million are employed,2 million are unemployed,and 1 million of the employed are working part-time,half of whom wish to work full-time.If 500,000 of those unemployed are cyclically unemployed,what is the natural unemployment rate?

• A)11.1 percent
• B)5.6 percent
• C)8.3 percent
• D)9.4 percent
• E)none of the above

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Definitions:

Residual Income

The income that exceeds the minimum required return on investment or capital; often used in performance measurement and evaluation.

Minimum Required Rate

The lowest return on investment that a company or individual deems acceptable, often used in financial analysis and capital budgeting.

Operating Assets

Operating assets are the assets a company uses in its daily operations to generate revenue, such as inventory, property, plant, and equipment.

Net Operating Income

Refers to the profit realized from a business's operations after subtracting all operating expenses, excluding taxes and interest.