Entry into and Exit from the Labor Force Are Important

question 29

Multiple Choice

Entry into and exit from the labor force are important to the determination of the unemployment rate because:

• A) more than one-half of the unemployed have only recently entered the labor force.
• B) most of the unemployed are young workers still looking for their first job.
• C) discouraged workers are counted as part of the labor force.
• D) almost one-half of all spells of unemployment end in the unemployed person's withdrawal from the labor market.

Distinguish between increasing, constant, and decreasing returns to scale in production.

Make connections between the slope of isoquants, marginal products of inputs, and the law of diminishing marginal productivity.

Apply knowledge of production economics to real-world examples and case studies.

Understand the conceptual differences between short-run and long-run production functions and returns to scale.

---

Definitions:

Taxable Personal Income

The amount of an individual's income that is subject to taxation after all deductions and exemptions, according to the governing tax laws.

Taxable Income

The portion of an individual's or entity's income used to calculate how much tax they owe to the government in a given tax year.

Deductions

Amounts that can be subtracted from total income for tax purposes, effectively reducing the taxable income.

Exemptions

Provisions that allow individuals or entities to be relieved from an obligation, such as taxes, previously imposed on them.