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Scenario: Consider Country a with a Population of 2 Million

Question 158

Multiple Choice

Scenario: Consider Country A with a population of 2 million people. In Country A, there are 1.5 million people employed; 0.3 million younger than 18, in school or retired; 0.1 million voluntarily unemployed; and 0.1 million people officially unemployed.
-Refer to the scenario above.If country A is at a labor market equilibrium,which of the following should be the only reason that a person is officially unemployed?


A) There is imperfect information between employers and workers, so the person is not able to find a job.
B) The person is not willing to work at the market clearing wage rate.
C) The person is in school and chooses not to work.
D) The person is retired.

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