Following the recession of 2001, there was a month in which employment and the unemployment rate both rose. Assuming the computations were correct, how is it possible for both to have increased?
The rate of unemployment is measured as the number of people unemployed divided by the labor force. If the number of people in the labor force rises, but a significant portion of the rise in the labor force is people who are unemployed, then both employment and unemployment could rise.
(This likely happened because as the economy was improving, more people began seeking employment, but not all immediately found employment.)
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If the producer surplus in a market for a good is $36 and the consumer surplus in the market for the same good is $9, the social surplus in the market is ________
A) $4 B) $27 C) $45 D) $324
A curve/line that shows combinations of goods among which a consumer would not desire one combination of goods to another combination of goods on that curve/line is called
A) a budget line. B) an indifference curve. C) a utility possibilities curve. D) a demand curve.