Question

Yvette has just finished school, but has not yet begun to look for a job. As a result, a) The unemployment rate increases, and the labour-force participation rate decreases. b) The unemployment rate increases, and the labour-force participation rate is unaffected. c) The unemployment rate increases, and the labour-force participation rate increases. d) The unemployment rate is unaffected, and the labour-force participation rate is unaffected.

Answer 1

D

Unemployment Rate:

• The percentage of a population's workforce not working but willing to work and actively seeking a job (Farlex Financial Dictionary).
• Yvette has not yet begun to look for a job

Labour Force Participation Rate (LFPR):

• LFPR is defined as the section of working population in the age group of 16-64 in the economy currently employed or seeking employment. People who are still undergoing studies, housewives and persons above the age of 64 are not reckoned in the labour force (The Economic Times/ https://m.economictimes.com/definition/labour-force-participation-rate/amp)