MULTIPLE CHOICE (identify the one best answer below and provide a justification for each of the five options): Suppose that the LFS data show the number of employed has decreased by 2,000. Then you know with certaintythat: a.Exactly 2,000 people previously employed lost a job. b.The participation rate has not changed. c.The unemployment rate has increased. d.The size of the labour force has decreased. e.None of the above. Hint: remember that the LFS is a snapshot in time, i.e. it shows the number of people in each category at a certain date, but it does not show flows of people from one category to another during a certain period. Also, the ‘with certainty’ bit in any question is important, the answers may be different from the case of ‘likely’ or ‘possibly’

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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MULTIPLE CHOICE (identify the one best answer below and provide a justification for each of the five options): Suppose that the LFS data show the number of employed has decreased by 2,000. Then you know with certaintythat:

a.Exactly 2,000 people previously employed lost a job.

b.The participation rate has not changed.

c.The unemployment rate has increased.

d.The size of the labour force has decreased.

e.None of the above.

Hint: remember that the LFS is a snapshot in time, i.e. it shows the number of people in each category at a certain date, but it does not show flows of people from one category to another during a certain period. Also, the ‘with certainty’ bit in any question is important, the answers may be different from the case of ‘likely’ or ‘possibly’.

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