Which of the Following Would Reduce the Labour Force Participation

question 57

Multiple Choice

Which of the following would reduce the labour force participation rate, all else equal?

• A)an increase in the number of people in the labour force
• B)an increase in the unemployment rate
• C)a decrease in the unemployment rate
• D)an increase in the working-age population
• E)an increase in minimum working age

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Definitions:

Skimming Pricing Strategy

A pricing approach where a product is initially set at a high price before gradually lowering it over time to capture different segments of the market.

R&D Costs

Expenses related to the research and development activities of a company, aimed at the innovation, improvement, or development of new products or services.

Competitive Entrants

New participants in a market who compete against established incumbents, usually introducing new competition or innovation.

Skimming Pricing

A pricing strategy involving setting high prices initially and then gradually lowering them to make the product available to a broader market.