Suppose the population (age 16 and over) of Vietnam is 100 million; 5 million are unemployed, and 40 million hold jobs. The labor force participation rate in Vietnam is

Full employment is not zero unemployment because

A) there are statistical errors when determining the unemployment rate that cannot be overcome. B) there is "normal" friction in the economy made up of those workers who are between jobs and those new entrants to the labor force. C) there are undocumented workers in the economy who are not counted by the Bureau of Labor Statistics. D) government workers are not counted in the labor force.

Answer the following statements true (T) or false (F)

1. When firms in a purely competitive industry are earning profits that are greater than normal, the supply of the product will tend to decrease in the long run. 2. When new firms enter a purely competitive industry, the market supply curve will shift to the left. 3. When some firms leave a purely competitive industry, the market supply curve will shift in such a way that the remaining firms' profits will increase. 4. In the long run, pure competition forces firms to produce at the minimum possible average total cost and the firms will charge a product price equal to that cost. 5. A purely competitive firm that is earning positive profits in its short-run equilibrium situation will continue to earn positive profits at the long-run equilibrium.