Find the size of the civilian labor force from the following data: frictional unemployment = 150, structural unemployment = 200, cyclical unemployment = 225, discouraged workers = 25, underemployed workers = 75, fully employed workers = 850, total population = 2,000.

a.1,425
b.1,450
c.1,500
d.1,525e.2,000

The answer is C

Explanation:

Labour force is the total number of citizens who are employed and also total number of citizens who are unemployed but actively searching for employment.

According to the question, they include the following:

frictional unemployment =          150

structural unemployment =         200,

cyclical unemployment =            225

underemployed workers =            75  

fully employed workers =            850

Total labour force =                  1,500

C. 1500

Explanation:

Given the following data,

Recall that

Labour force is defined as the total number of people who are employed plus unemployed (who are looking for work).

Thus, from that definition, discouraged workers which are 25 would not be added as they are not looking for work.

Therefore, total civilian labour force

= frictional unemployment + structural unemployment + cyclical unemployment + underemployed + fully employed

= 150 + 200 + 225 + 75 + 850

= 1500

1500 belongs to the civilian labour force.

answer; encouraging the development of innovations by firms attempting to break a monopoly; (creative destruction)