In September There Are 10,000 People Classified as Unemployed and the Size

question 86

Multiple Choice

In September there are 10,000 people classified as unemployed and the size of the labor force is 400,000. The only change between September and October is that 4,000 of the unemployed give up looking for work. Which of the following is true?

• A) In September the unemployment rate was 1.75% and in October the unemployment rate was 0.75%.
• B) In September the unemployment rate was 2.5% and in October the unemployment rate was 1.5%.
• C) In September the unemployment rate was 4% and in October the unemployment rate was 1%.
• D) In September the unemployment rate was 5% and in October the unemployment rate was 4%.

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Definitions:

Marginal Tax Rate

The rate at which the last dollar of income is taxed, influencing individuals' decisions on investment and labor.

Tax Obligation

The requirement for taxpayers to pay taxes due to governmental authorities based on income, consumption, property, and other relevant tax bases.

Average Tax Rate

The ratio of the total amount of taxes paid to the taxpayer's total taxable income, indicating the share of income that is taken as tax.

Marginal Tax Rate

The percentage of tax applied to your income for each additional dollar of income.