The Labor Force Is Made Up of

question 11

Multiple Choice

The labor force is made up of

• A) the entire working population.
• B) the entire working population over the age of 16.
• C) the entire working population over the age of 16 who currently have a job.
• D) the entire working population over the age of 16 who are looking for a job or currently have a job.
• E) the entire working population over the age of 16 and individuals in prison.

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Definitions:

Speculative Motive

The intention to hold cash for the purpose of taking advantage of future opportunities that may arise, such as bargain purchases or earning profits from price changes.

Investment Opportunities

Investment opportunities refer to avenues where individuals or entities can invest their resources with the expectation of generating a future financial return.

Float Motive

The reason businesses hold onto cash for transactional purposes, allowing them to meet short-term obligations without liquidating investments.

Cash Concentration

The process of consolidating cash from multiple accounts into a single account, aiming to improve the efficiency of cash management and reduce transaction costs.