The Decline in the Measured Unemployment Rate That Results When

question 16

Multiple Choice

The decline in the measured unemployment rate that results when people who want to work, but who cannot find work, drop out of the ranks of the unemployed and the labor force is the

• A) leisure-preference effect.
• B) discouraged-worker effect.
• C) surplus labor effect.
• D) disguised unemployment effect.

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Definitions:

Maturity

The date on which a financial obligation or investment becomes due for payment.

Face Value

The nominal value stated on financial instruments, such as bonds or stock certificates, representing the amount to be repaid at maturity.

Contract Rate

The predetermined price per unit of service or good agreed upon in a contractual agreement.

Market Rate

The prevailing rate of interest or value for currencies or goods in the marketplace, often influenced by supply and demand.