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Consider a family of three, a 40-year-old parent working as a professor, a 38-year-old parent staying at home, and a 14-year-old junior high student. How are these three classified in the Bureau of Labor Statistics monthly unemployment survey?

a. The 40-year-old parent is employed, the 38-year-old parent is not in the labor force, and the student is not counted at all.
b. The 40-year-old parent is employed, the 38-year-old parent is not in the labor force, and the student is not in the labor force.
c. The 40-year-old parent is employed, the 38-year-old parent is unemployed, and the student is not in the labor force.
d. The 40-year-old parent is employed, the 38-year-old parent is not counted at all, and the student is not counted at all.

If a lender is charging an interest rate of 8% for a year's loan, and the inflation rate during that year is 2%, the real interest rate is closest to

a. 6%.
b. 0.25%.
c. 4%.
d. -6%.

Microeconomics, Economics

  • Category:- Microeconomics
  • Reference No.:- M946795

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