Prime Minister Bigego Is Running for Re-Election Against Finance Minister

question 163

Multiple Choice

Prime Minister Bigego is running for re-election against Finance Minister Pander. Bigego proclaims that more people are working now than when he took office. Pander says that the unemployment rate is higher now than when Bigego took office. Which of the following can you conclude?

• A)One of them must be lying.
• B)Both of them could be telling the truth if the labour force participation rate and the labour force both fell.
• C)Both of them could be telling the truth if the labour force grew slower than employment.
• D)Both of them could be telling the truth if the labour force grew faster than employment.

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Definitions:

Rising Incomes

An economic condition characterized by a general increase in the level of wages, salaries, and profits across a population or economy.

Population Growth

The increase in the number of individuals in a population, often measured as a percentage of growth over a specific period of time.

Capital Flight

The transfer of savings from developing countries to industrially advanced countries to avoid government expropriation, taxation, or higher rates of inflation, or simply to realize greater returns on financial investments.

Export Earnings

The revenue a country or business receives from selling goods and services to other countries.