Suppose That a Well-Respected Study Published in Child Psychology Today

question 468

Multiple Choice

Suppose that a well-respected study published in Child Psychology Today finds that a very high proportion of children raised by stay-at-home fathers are accepted to Harvard University. If a large number of previously working fathers quit their jobs and become stay-at-home dads, which of the following will occur, all else equal? i) The unemployment rate will decrease.
Ii) The size of the labor force will decrease.
Iii) The number of unemployed people will increase.
Iv) The unemployment rate will increase.

• A) i) and ii) only
• B) ii) and iv) only
• C) i), ii), and iii) only
• D) ii), iii), and iv) only

---

Definitions:

Interest Expense

The cost incurred by an entity for borrowed funds, recognized as an expense in the income statement over the period the funds are borrowed.

Unearned Revenue

Money received by a company for services or products which have not yet been delivered or performed.

Advance Subscription Sales

Revenue received from customers for subscriptions that are paid for before the subscription period begins.

Quarterly Journals

Publications that release issues on a quarterly basis, often academic or professional in nature, covering specific field subjects.