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 percentage of the population that is either employed or actively seeking employment. If workers are leaving the labor force due to unsuccessful job searches or choosing to take a gap year, it can cause fluctuations in this rate. The employment rate, while also related to job searches, specifically measures the percentage of the population that is currently employed. The efficiency wage and inflation rate are not directly related to the trend of college graduates taking a gap year.

An Article in the Financial Times Reports on a Trend