Which of the following occur when a person maximizes utility? I. ...

[fox]

Which of the following occur when a person maximizes utility? I. The marginal utility of each good bought is equal. II. The highest level of utility is attained. III. All of a person's budget is spent.
 
  A) I and II
  B) I and III
  C) II and III
  D) I, II and III

Question 2

The Bureau of Labor Statistics reported the data in the table above for October 2003.
 
  a) Calculate the number of people unemployed.
  b) Calculate the number of people who are not in the labor force
  c) Calculate the unemployment rate.
  d) Calculate the labor force participation rate.

[juwms]

Answer to Question 1

C

Answer to Question 2

a) The labor force is the sum of the number of people employed plus the number of unemployed. So the number of people unemployed is the labor force minus the number of employed: 146.8 - 138.0 = 8.8 million.
b) The number of people who are not in the labor force is the difference between the working age population and the labor force: 222.0 - 146.8 = 75.2 million.
c) The unemployment rate is the number of unemployed as a percentage of the labor force: (8.8/146.8 )  100 = 6.0 percent.
d) The labor force participation rate is the percentage of the working-age population who are in the labor force: (146.8/222.0 )  100 = 66.1 percent.