Since 1950, the Labor Force Participation Rate in the United

question 55

Multiple Choice

Since 1950, the labor force participation rate in the United States

• A) of men and women both increased.
• B) of men increased and women decreased.
• C) of men and women both decreased.
• D) of men decreased and for women increased.

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Definitions:

Average Revenue Product

The increase in total revenue resulting from employing one more unit of a resource, holding all other factors constant.

Substitution Effect

The alteration in the consumption of goods as a result of changes in their relative prices, leading consumers to substitute more expensive items with cheaper alternatives.

Output Effect

The change in total revenue resulting from selling additional units due to a price decrease, in the context of price elasticity of demand.

Income Effect

A change in the quantity demanded of a product that results from the change in real income (purchasing power) caused by a change in the product’s price.