Suppose U = the Number of Adults Who Are Unemployed;

question 123

Multiple Choice

Suppose U = the number of adults who are unemployed; E = the number of adults who are employed; and NLF = the number of adults not in the labor force.Which expression would equal the labor force participation rate?

• A)U/(U + E)
• B)E/(U + E)
• C)U/(U + E + NLF)
• D)E/(U + E + NLF)
• E)(U + E)/(U + E + NLF)

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Definitions:

Marginal Returns

The additional output gained by adding one more unit of input, holding all other inputs constant.

Minimum Efficient Scale

The minimum efficient scale is the lowest point of production where a firm can achieve the economies of scale, reducing its cost per unit to the minimum.

Economic Profits

The surplus or profit gained by a firm after subtracting all its costs, including both explicit and implicit costs, from its total revenues.

Accounting Profits

The net income for a company calculated by subtracting total expenses from total revenues, according to standard accounting practices.