If the Numbers of Employed and Unemployed Do Not Change

question 13

Multiple Choice

If the numbers of employed and unemployed do not change but the size of the civilian population increases by 10%, what would be the effect?

• A)​an increase in the unemployment rate and an increase in the labor force participation rate
• B)​an increase in the unemployment rate and no change in the labor force participation rate
• C)​an increase in the unemployment rate and a decrease in the labor force participation rate
• D)​no change in the unemployment rate and a decrease in the labor force participation rate

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Definitions:

Dividend Payout Ratio

The fraction of net income a firm pays to its shareholders as dividends, typically expressed as a percentage.

Profit Margin

A financial metric that measures the extent to which a company or a business activity makes money, expressed as a percentage of revenues.

Dividend Payout Ratio

A financial metric that shows what portion of a company's earnings is distributed to shareholders in the form of dividends.

Profit Margin

Profit margin is a financial metric used to assess a company's profitability by comparing net income to sales, indicating how much of each dollar in revenue a company keeps as profit.