The Labor Force Participation Rate Is the Number of People

question 75

Multiple Choice

The labor force participation rate is the number of people in the labor force divided by the number of people in the country who are of working age and not institutionalized. The BLS reported in February 2012 that the labor force participation rate in the United States was 63.7% (Calculatedrisk.com) . A marketing company asks 120 working-age people if they either have a job or are looking for a job, or, in other words, whether they are in the labor force. What is the probability that between 60% and 62.5% of those surveyed are members of the labor force?

• A) 0.0243
• B) 0.1926
• C) 0.2005
• D) 0.3936

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Definitions:

Market Price

The current price at which an asset or service can be bought or sold.

Variable Cost Concept

The principle stating that costs change in proportion to changes in volume of activity or production.

Cost-Plus Approach

A pricing strategy where the selling price is determined by adding a specific markup to a product's cost price to cover overheads and profit.

Markup

The amount added to the cost of a product or service to arrive at a selling price.