When the Labor Force Participation Rate Falls, the Average Wage

question 16

Multiple Choice

When the labor force participation rate falls, the average wage in the economy is likely to increase. Why?

• A)Because workers who have the worst wage options are those most likely to leave the labor force.
• B)Because educated workers are those most likely to leave the labor force.
• C)Because the most experienced workers are those most likely to leave the labor force.
• D)Because wages don't take into account salaried workers.
• E)Because the U.S. has a negatively skewed wage distribution.

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Definitions:

Confidence Interval Estimate

An estimated range of values computed from sample data that is likely to include the true parameter of a population with a specified level of confidence.

Mean Scores

The arithmetic average of a set of scores, indicating central tendency.

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A program designed to prevent drug abuse and addiction, often through education or rehabilitation.

Democrats

A member or supporter of the Democratic Party, one of the two major political parties in the United States.