In a country, where both the labor force participation rate and the unemployment rate are very low, which of the following answers explains why this may be the case?

Question

Quizplus · Accepted Answer

If a significant portion of the population is aged and has retired, this would explain why the labor force participation and unemployment rates are low. However, if the population consisted largely of children, this would lower the labor force participation rate but not necessarily the unemployment rate. Option C is incorrect because if a large percentage of the population was actually unemployed, this would raise the unemployment rate rather than keep it low. Option D is incorrect because one of the given options provides a plausible explanation.

In a Country, Where Both the Labor Force Participation Rate