If the Unemployment Rate Falls Because the Number of People

question 42

Multiple Choice

If the unemployment rate falls because the number of people not working but searching for work falls, economists would attribute this to the

• A)fallacy of composition.
• B)encouraged worker effect.
• C)discouraged worker effect.
• D)none of the options are correct.

---

Definitions:

Ordinary Annuity

A series of equal payments made at fixed intervals over a specified period.

Ordinary Annuities

A sequence of identical payments distributed at the conclusion of successive intervals during a predetermined duration.

Annuities Due

Annuities that require payment at the beginning of each period, as opposed to the end, used often in leases and loan repayments.

Time Periods

Distinct intervals of time used for financial analysis, planning, and accounting, can range from short-term to long-term durations.