Which one of the following statements is false?

Question

BlackTom AI · Accepted Answer

Question restatement: Which one of the following statements is false?

Option 1: The labour force is defined as the total number of people that are working or available and seeking to work.
- This is true. The labour force comprises those who are employed plus those who are unemployed but actively seeking work, i.e., people who are working or actively looking for work.

Option 2: The labour force is defined as the total working age population.
- This is false. The total working age population includes everyone of working age, regardless of their employment status. The labour force is a subset of the working age population, specifically those who are either employed or actively seeking employment.
- Misconception to avoid: confusing population with activity status. Some people of working age may be out of the labor force (students, retirees, homemakers not seeking work, etc.).

Option 3: The labour force participation rate is the number of people in the labour force divided by the total working age population.
- This is true. The labour force participation rate equals (labour force) / (working age population), typically expressed as a percentage. It measures the extent of engagement in the labor market.

Option 4: The unemployment rate is the number of unemployed people divided by the total labour force.
- This is true. The unemployment rate equals (unemployed individuals) / (labour force). It reflects the share of people in the labour force who are not currently employed but are seeking work.

Summary reasoning: By definition, options 1, 3, and 4 correctly describe standard labor market concepts, whereas option 2 incorrectly equates the labour force with the total working age population. The false statement is thus option 2, since the labour force is the subset of the working age population that is either employed or actively seeking employment.

ECON10003_2025_SM1 Pre-Tutorial Quiz 2

Which one of the following statements is false?

View Explanation

Log in for full answers

Similar Questions

Assume both labour productivity and the mark-up are constant. Comparing an economy with trade unions to another economy without trade unions, the activities of trade unions are counterproductive because they generate inflationary pressure and in the new equilibrium, employment is lower.

In a consumer society, many adults channel creativity into buying things

Economic stress and unpredictable times have resulted in a booming industry for self-help products

People born without creativity never can develop it

A product has a selling price of $20, a contribution margin ratio of 40% and fixed cost of $120,000. To make a profit of $30,000. The number of units that must be sold is: Type the number without $ and a comma. Eg: 20000

Which of the following statement regarding cost is correct:

Under the assumptions used in cost-volume-profit analysis, as the activity increases:

The CVP and break-even analysis are supported by a range of important assumptions. Which of the following is not an assumption of the CVP:

More Practical Tools for Students Powered by AI Study Helper

Homework AI Solver

Stylized AI Paper Writer

Plagiarism Checker Assistant

Citation AI Academic Writing Tool

In-Class Translation Assistant

AI Note Generator

AI Quiz Answers

Past Exam Questions from University Test Bank

Smart Practice Assistant

Adaptive Practice

Making Your Study Simpler