1. 2. 3. The working-age population in Concordia was estimated to be 6.5 million in a certain year. The country's labor department announced that the total number of unemployed people in the country had gone up to 460,000 during this year while, the total number of people out of the labor force decreased to 2,000,000. Oscar Lewis, a student of labor economics believes that the labor department data is flawed. The government of Concordia adopted expansionary fiscal policies in the last two years with the aim of increasing employment. However, the government has been unable to bring down the unemployment rate in the country. Which of the following, if true, best explains this outcome? OA The government implemented a generous welfare plan 3 years ago to support people who cannot find work. OB. The number of students who enroll for higher education is decreasing every year. Oc. During this period, the country's government reduced the limits on foreign direct investment in key sectors. OD. The per capita income of the people in Concordia has been increasing over the years. OE. Most educated people prefer job options in Concordia compared to opportunities available elsewhere. Show Transcribed Text Justin Weaver reads a newspaper article in which an analyst points out that the country's 7 percent unemployment figure is actually its full-employment rate of unemployment. Justin is puzzled as to why this would be considered the full-employment rate of unemployment, when 7 out of 100 people in the labor force do not have jobs. Which of the following, if true, would best explain this to Justin? OA. The full-employment rate of unemployment was about 6 percent five years back. OB. In a neighboring country, 5 percent is considered the full-employment rate of unemployment. Oc. Cyclical unemployment is also equal to 7 percent. OD Structural unemployment in the country is at 3 percent while frictional unemployment is at 4 percent. OE Part-time workers are counted as employed in the country's labor statistics data. Show Transcribed Text At the start of the year, the rate of unemployment among U.S. citizens who were between 50 to 60 years old was 7 percent. At the end of the year, the same age-group reported an unemployment rate of 6 percent. However, a newspaper columnist claims that the falling unemployment rate is not an accurate indicator of the overall employment situation of this age-group. Which of the following, if true, would strengthen the columnist's claim? OA. The number of people in this age-group receiving unemployment benefits from the government decreased. OB. Most people in this group who lost their jobs stopped actively looking for new work. Oc. Economic indicators show that the economy is now recovering after a prolonged recession. OD. The overall unemployment in the economy decreased by 2 percent. OE. Most people in this age-group who lost their jobs were able to find other work.