If an Unemployed Person Quits Looking for Work, Ceteris Paribus

question 62

Multiple Choice

If an unemployed person quits looking for work, ceteris paribus, which of the following best describes the changes in the labour statistics?

• A)The unemployment rate decreases, and the labour-force participation rate increases.
• B)The unemployment rate decreases, and the labour-force participation rate decreases.
• C)The unemployment rate stays the same, and the labour-force participation rate decreases.
• D)The unemployment rate and the labour-force participation rate stay the same.

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Definitions:

Economic Returns

The financial gains or profits achieved from an investment or business operation.

Tragedy Of The Commons

A situation in which individual users, acting independently according to their own self-interest, deplete or spoil shared resources, even though it is not in anyone's long-term interest for this to happen.

Equator

An imaginary line around the Earth's surface located equidistant from the North and South Poles, dividing the Earth into the Northern and Southern Hemispheres.

Command And Control

A traditional management approach where decisions and instructions come from the top of the organizational hierarchy and are strictly followed by lower levels.