An article in the Financial Times reports on a trend by college students to take a year off after graduation given the lack of success in finding a job. "In a survey published last month by TMP Worldwide... 54 per cent of the final-year undergraduate interviewees were thinking about taking a gap year and one in 10 was planning to wait for a year to escape the financial chaos and wait for the economy to either improve or for the picture to become clearer." www.ft.com, 10/13/2008
These choices add to the fluctuations seen in the ________ as workers leave the labor force given their unsuccessful job searches.
A) labor force participation rate
B) employment rate
C) efficiency wage
D) inflation rate

Question

Quizplus · Accepted Answer

The labor force participation rate measures the proportion of the working-age population that is working or actively looking for work. When workers leave the labor force due to unsuccessful job searches, as described in the scenario, it directly affects the labor force participation rate by reducing it.

An Article in the Financial Times Reports on a Trend