1)Which of the following statements is INCORRECT?

• The labor force is equal to the number of people employed plus the number of people unemployed.
• The working age population includes everyone over the age of 16.
• The unemployment rate is the number of persons who are unemployed divided by the labor force then times 100.
• The labor-force participation rate is the labor force divided by the working-age population then times 100.

2) When the price of an inferior good falls, the substitution effect leads to ________ in the quantity purchased and the income effect leads to ________ in the quantity purchased.

3) PRODUCTIVITY FRONTIER FOR THIS QUESTION.docxThe figure below shows Roger's production possibilities frontier. Point a is an ________ point and at that point production is ________.

• attainable; efficient
• attainable; inefficient
• unattainable; inefficient
• unattainable; efficient