When the labor force participation rate is declining,the
A)Unemployment rate is rising faster than the total population rate.
B)Percentage of the working-age population that is outside the labor force is declining.
C)Percentage of the working-age population that is willing and able to work is declining.
D)Percentage of the total population that is employed is rising.

Question

Quizplus · Accepted Answer

The labor force participation rate measures the percentage of the working-age population that is willing and able to work, so when the rate is declining, it means that fewer people are in the labor force. This could be due to a variety of factors, such as retirement, going back to school, or simply giving up on finding a job. Therefore, option C is correct, as it reflects the decrease in the labor force participation rate. Option A is incorrect because the unemployment rate is only one factor in the labor force participation rate, and it may not necessarily be rising faster than the total population rate. Option B is incorrect because if the percentage of the working-age population outside the labor force were declining, then the labor force participation rate would be increasing, which is the opposite of what the question is asking. Option D is incorrect because if the labor force participation rate is declining, it means that fewer people are employed, so the percentage of the total population that is employed would not be rising.

When the Labor Force Participation Rate Is Declining,the