Question

The labor force participation rate is calculated as:

Select one:

a. the percent of the population age 16 or older that is in the labor force.

b. the percent of the entire population that is unemployed.

c. the percent of the labor force age 16 or older that is employed.

d. the percent of the population age 16 or older that is unemployed.

Which of following is true about socialism?

Select one:

a. all of the above.

b. prices are set by the government.

c. the means of production (land and capital) are owned by the government.

d. economic decisions are made by the government.

What is the effect of a minimum wage in a low-skill labor market?

Select one:

a. all of the above.

b. a lower quantity of labor demanded.

c. a higher wage.

d. a higher quantity of labor supplied.

Which of the following represents the largest share of aggregate demand?

Select one:

a. consumer purchases

b. government purchases

c. foreigner purchases

d. business purchases

Which of the following is a microeconomic topic?

Select one:

a. inflation.

b. the overall economy.

c. an individual market.

d. total GDP.

Answer 1

Answer:

1) A. The percentage of the population age 16 or older that is in the labor force.

2) A. All of the above

3) A. All of the above

4) A. Consumer purchases

5) C. An individual market

Reasons:

1) a. The percentage of the population age 16 or older that is in the labor force.

It is measured as the ratio of the total number of people in the labor force to the total working age population (16-64 yrs). It is calculated using the formula given below:

LFPR=Total Working Age Population (Age 16−64)/   Total Labor Force (Employed+Unemployed)​

Labor force includes all those people who are employed and unemployed (a person is considered to be unemployed if he is currently not doing any job, available for work and is actively seeking for a job in the past 4 weeks

2) a. All of the above).

Government has an important role to play in the socialist economy. It plans and regulates all economic activities in the country such as investment, consumption, production, international trade, etc. In a socialist economy, there is no concept of free trade and all decisions of individuals are made by the government of the country. A socialist economy is a political system in which most of the resources are owned by the government, and they work for the welfare of the society and not to maximize profits. The government determines consumption, prices, employment, production, investment and distribution of resources in the economy.

China is the most common example of a socialist economy.

3) a. all of the above

The minimum wage is the legal minimum wage that the government of the country has to pay to its employees by the employer. This minimum wage has been decided by the government for the upliftment of the poorest sections of the society and to eliminate the exploitation of the workers.

4) a. Consumer purchases

Consumer purchases represent the largest share of total demand. This includes expenses incurred on the final goods and services of all households during an accounting period. This is 60% of the total demand.

5) c. an individual market

An independent market is an example of a microeconomic issue. Microeconomics is the study of individual units or firms. Studies the behavior of small units in determining their supply, demand and price.

All the other options given in the question are macroeconomic topics because it studies decisions made by overall economy.