Question
Explain why the following statements is True, False, or Uncertain according to economic principles.Use diagrams where appropriate and show your calculations. It is the explanation
Explain why the following statements is True, False, or Uncertain according to economic principles.Use diagrams where appropriate and show your calculations. It is the explanation that is important.
Suppose two countries with the same population each start with 10 unemployed workers and 90 employed workers. Subsequently 5 workers in country A find jobs and become employed, while in country B, all 10 of the unemployed become discouraged and leave the labour force. Because country B'srate ofunemployment falls from 10% to 0%, while country A'sonly falls from 10% to 5%, we can say that the labour market outcome in Country B is superior to that in Country A.
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