Below is a graphical illustration of Nearly Done Inc.'s marginal revenue product.The firm employs its labour in a perfectly competitive labour market.

-What is meant by the labour force?
A)It is the total number of people over 15 who are willing and able to work.
B)It is the total number of people between 15 and 65 who are willing and able to work.
C)It is the total number of hours that employed people work.
D)It is the total number of people over 15 who have paid employment.

Question

Below is a graphical illustration of Nearly Done Inc.'s marginal revenue product.The firm employs its labour in a perfectly competitive labour market.
 
-What is meant by the labour force?
A)It is the total number of people over 15 who are willing and able to work. 
B)It is the total number of people between 15 and 65 who are willing and able to work. 
C)It is the total number of hours that employed people work. 
D)It is the total number of people over 15 who have paid employment.

Quizplus · Accepted Answer

The labour force refers to the total number of people over 15 who are willing and able to work, regardless of whether they are employed or not. Therefore, option A is the correct answer. Option B is incorrect because the labour force is not restricted to people between 15 and 65 years of age. Option C refers to total work hours and not the labour force. Option D is incorrect because the labour force includes both employed and unemployed individuals.

Below Is a Graphical Illustration of Nearly Done Inc