Suppose that the population is 275 million. Also assume that the ...

[erika]

Suppose that the population is 275 million. Also assume that the labor force is 135 million and that 130 million people are employed. Calculate the unemployment rate.
 
  What will be an ideal response?

Question 2

Which of the following correctly describes incentives?
 
  A) Incentives refer to the maximum price that a buyer is willing to pay for a good.
  B) Incentives are rewards or penalties that motivate people to behave in a particular way.
  C) Incentives are prices that are fixed by the government and not by market forces.
  D) Incentives refer to the minimum price at which a seller is willing to sell a product.

[AmberC1996]

Answer to Question 1

The unemployment rate is (5 million unemployed  135 million labor force)  100 = 3.7 percent.

Answer to Question 2

B