Explain how the labor force participation rate and the unemployment rate change in a recession
What will be an ideal response?
The labor force participation rate tends to decrease during a recession as more workers become discouraged. The unemployment rate increases during a recession because there are fewer jobs.
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A Pareto improvement is
a. an action in which the gains to the gainers outweigh the losses to the losers b. any action that does not harm a third party c. an action that makes at least one person better off, and no one worse off d. any action that involves a side payment to a third party e. the typical outcome of government action
Which of the following statements best describes the problems faced by workers in low- income countries?
a. The real problem for many workers in low-income countries is that globalization has made their lives worse, and that they have so few good life alternatives. b. The real problem for many workers in low-income countries is that globalization has made their lives worse, although it has created a few good life alternatives. c. The real problem for many workers in low-income countries is not that globalization has made their lives worse, but rather that they now have so many life alternatives. d. The real problem for many workers in low-income countries is not that globalization has made their lives worse, but rather that they have so few good life alternatives.