Suppose There Are 10 Million Part-Time Workers and 90 Million

question 14

Multiple Choice

Suppose there are 10 million part-time workers and 90 million full-time workers in an economy.Five million of the part-time workers switch to full-time work.We can conclude that:

• A)the official unemployment rate will fall.
• B)the official unemployment rate will rise.
• C)the official unemployment rate will remain unchanged.
• D)the size of the labour force will increase.

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Definitions:

Federal Tax Revenues

Money collected by the government from taxes imposed on individuals and businesses that is used to fund public services and programs.

Deadweight Loss

The reduction in economic efficiency that happens when a good or service does not reach or cannot reach its equilibrium.

Efficient Tax System

A tax system that collects required revenue without excessive government borrowing, and does so in a way that does not impede economic growth.

Tax Revenues

The income that is received by the government from taxpayers, including individuals and businesses, to fund public expenditures.