If the Labor Force Is 500 and Employment Is 450

question 23

Multiple Choice

If the labor force is 500 and employment is 450, then the unemployment rate is

• A) 100%.
• B) 90%.
• C) 10%.
• D) 0%.

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Definitions:

Marginal Productivity Theory

An economic theory that suggests the value of a good or service is determined by the marginal productivity of the inputs used in its production.

Perfectly Competitive

A market structure where many firms sell identical products, entry and exit are easy, and no single buyer or seller can influence the market price.

Equilibrium Value

The stable value at which supply equals demand for a particular good, service, or financial instrument, leading to a balanced market condition.

Marginal Product

The additional output that results from using one more unit of a particular input, while holding other inputs constant.