To Be Counted in the Labor Force

question 7

Multiple Choice

To be counted in the labor force

• A) a person has to be working at least 40 hours per week.
• B) a person has to be at least 16 or older, have a job, or if unemployed has to be actively seeking employment.
• C) a person, irrespective of his or her age, has to be working or, if out of work, actively seeking employment.
• D) a person has to be over 16 years of age, irrespective of whether she or he is actively seeking work.

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Definitions:

Efficiency Wages

Wages that are deliberately set above the market equilibrium to increase productivity, reduce turnover, or improve the quality of applicants.

Labor Surplus

A situation in the labor market where the supply of labor exceeds the demand for labor, often leading to unemployment.

Structural Unemployment

An unemployment scenario where there's an incongruence between the skillsets provided by the labor market and those needed by employers.

Efficiency Wages

Wages that are deliberately set above the market equilibrium to increase productivity by attracting better applicants, reducing turnover, or increasing worker effort.