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When the Labor Force Participation Rate Falls, the Average Wage

Question 25

Multiple Choice

When the labor force participation rate falls, the average wage in the economy is likely to increase. Why?


A) Workers who have the worst wage options are those most likely to leave the labor force.
B) Educated workers are those most likely to leave the labor force.
C) The most experienced workers are those most likely to leave the labor force.
D) Wages do not consider salaried workers.
E) The United States has a negatively skewed wage distribution.

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