When an individual quits his/her job and decides to stay at home for a while, the labor-force participation rate
A) decreases.
B) increases.
C) stays the same.
D) may increase or decrease, depending on the length of time he/she stays at home.

Question

Quizplus · Accepted Answer

The labor-force participation rate measures the percentage of the working-age population that is either employed or actively seeking employment. When an individual quits his/her job and stays at home, he/she is no longer actively seeking employment, and therefore, the labor-force participation rate decreases.

When an Individual Quits His/her Job and Decides to Stay