Suppose that due to a poor economy, 1 million workers lost their jobs, causing the unemployment rate to increase to 10%. After a few months of searching, 300,000 of these unemployed workers give up looking for work. How would the decision by these 300,000 people affect the unemployment rate, all else equal?a) The unemployment rate would increase. b) The unemployment rate would decrease. c) The unemployment rate would remain unchanged. d) There is not enough information to answer this question.

The correct answer is:

The unemployment rate would remain unchanged (d)

Explanation:

Unemployment rate is defined as the percentage of unemployed labor, in a total labor force. That is the percentage of people willing and able to work, but not working because there are no jobs available for them. Considering this definition, we see that the 300,000 people who have given up looking for jobs, are still able and willing to do so, despite being discouraged, hence, when the unemployment rate of the total labor force is to be calculated they will be counted also.

1   all nations face the problem of scarcity because there are limited resources and unlimited wants. nations do not have enough factors of production to produce everything that their population wants. entrepreneurial resources initiate businesses to make new goods and services; labor resources produce goods and services.

2 there are four factors of production: natural resources, labor resources, capital resources, and entrepreneurial resources. natural resources are raw materials from nature that are used to produce goods. trees, water, and grains are natural resources. some natural resources, such as wheat and cattle, are renewable

3 wants

things that you do not need to have in order to survive, but would like to have

needs

things that you must have in order to survive

goods

physical products

services

tasks that a business perform for customers

resources

items that people can use to make or obtain what they need or want

determine

to settle or decide by choice of alternatives or possiblities

4 i really dont know

answer; sprint;