Some Persons Are Counted as Out of the Labor Force

question 121

Multiple Choice

Some persons are counted as out of the labor force because they have made no serious or recent effort to look for work.However,some of these individuals may want to work even though they are too discouraged to make a serious effort to look for work.If these individuals were counted as unemployed instead of out of the labor force,then

• A)both the unemployment rate and labor-force participation rate would be higher.
• B)the unemployment rate would be higher ,and the labor-force participation rate would be lower.
• C)the unemployment rate would be lower,and the labor-force participation rate would be higher.
• D)both the unemployment rate and labor-force participation rate would be lower.

---

Definitions:

Interest Income

Income earned from deposit accounts or from investing in interest-bearing financial instruments.

Purchasing Power

The worth of a currency depicted by how many goods or services can be purchased with one unit of it.

Deflation

A decrease in the general price level of goods and services, often associated with reduced demand or increased supply.

Small Denomination Time Deposits

Small denomination time deposits are savings accounts or certificates of deposit under a specified amount that typically offer interest over a fixed term.