As the Average Age of the Labour Force Increased from the End

question 52

Multiple Choice

As the average age of the labour force increased from the end of the 1970s to the end of the 1990s,the natural rate of unemployment:

• A) increased.
• B) decreased.
• C) was unaffected.
• D) was unpredictable.

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Definitions:

Lerner Index

A measure of a firm's market power and pricing strategy, defined as the difference between price and marginal cost, scaled by price.

Elastic

Describes a situation where the quantity demanded or supplied of a good or service changes significantly in response to price changes.

Inelastic Demand

Describes a situation where the demand for a product does not change significantly in response to a change in the product's price.

Barriers to Entry

Obstacles that make it difficult for new competitors to enter a market, such as high startup costs, strict regulations, or strong brand loyalty.