Econ Final Exam
Suppose 14 units of output are supplied in the market. How much lower is the average total cost of production for one firm compared to two firms? One firm can supply 14 units of output for $___ less per unit in average total cost than two firms.
$3.00
Suppose a farmer in Georgia begins to grow peaches. He uses $1,000,000 in savings to purchase land, he rents equipment for $100,000 a year, and he pays workers $150,000 in wages. In return, he produces 150,000 baskets of peaches per year, which sell for $3.00 each. Suppose the interest rate on savings is 33 percent and that the farmer could otherwise have earned $40,000 as a shoe salesman. What is the farmer's economic profit? What is the farmer's accounting profit?
130,000 200,000
Which demand curve in the graph to the right is associated with the shutdown point for this perfectly competitive firm? A. D1 B. D2 C. D3 D. D4
B. D2
The Department of Justice and the Federal Trade Commission use the HHI calculation for a market to evaluate proposed horizontal mergers. For example, if the post-merger HHI is below ____, then the market is not concentrated, so mergers in them are not challenged; however, at the other extreme, if the post-merger HHI is above ___, then the market is highly concentrated, and mergers that increase the HHI by 100 to 200 points may be challenged and mergers that increase the HHI by more than 200 points will likely be challenged
1500 2500
Suppose a farmer in Georgia begins to grow peaches. He uses $1,000,000 in savings to purchase land, he rents equipment for $80 comma 00080,000 a year, and he pays workers $130 comma 000130,000 in wages. In return, he produces 200 comma 000200,000 baskets of peaches per year, which sell for $3.003.00 each. Suppose the interest rate on savings is 55 percent and that the farmer could otherwise have earned $30 comma 00030,000 as a shoe salesman. What is the farmer's economic profit? What is the farmer's accounting profit?
310,000 390,000
Suppose the fixed interest rate on a loan is 5.75% and the rate of inflation is expected to be 4.25%. The real interest rate is 1.5%. Suppose now that instead of 4.25%, the inflation rate unexpectedly reaches 5.5%. Who gains and who loses from this unanticipated inflation? (Mark all that apply.) A. Lenders lose from a lower real interest rate. B. Borrowers lose from a lower real interest rate. C. Lenders gain from a lower real interest rate. D. Borrowers gain from a lower real interest rate.
A. Lenders lose from a lower real interest rate. D. Borrowers gain from a lower real interest rate.
What is the relationship between price, average revenue, and marginal revenue for a firm in a perfectly competitive market? A. Price is equal to both average revenue and marginal revenue. B. Price, average revenue, and marginal revenue usually all have different values. C. Price is greater than average revenue and equal to marginal revenue. D. Price is equal to average revenue and greater than marginal revenue.
A. Price is equal to both average revenue and marginal revenue.
One way for a firm to become a monopoly is by controlling a key resource. A. True B. False
A. True
Suppose that you are available to go to work but have not looked for a job for at least the last four weeks because you believe that there aren't any jobs available. You would be counted as A. a discouraged worker. B. unemployed. C. part of the labor force. D. underemployed.
A. a discouraged worker.
To have a monopoly, barriers to entering the market must be so high that no other firms can enter. Do network externalites create or remove barriers to entry? Explain. Network externalities A. create barriers to entry because if a firm can attract enough customers initially, it can attract additional customers as its product's value increases by more people using it, which attracts even more customers. B. create barriers to entry because a firm efficiently offers products that satisfy consumer preferences. C. remove barriers to entry because diseconomies of scale are so large that one firm can supply the entire market at higher average total cost than can two or more firms. D. remove barriers to entry because such externalities require multiple firms to provide the goods and services in the network. E. create barriers to entry because consumption of a firm's product decreases the value of goods and services produced by other firms.
A. create barriers to entry because if a firm can attract enough customers initially, it can attract additional customers as its product's value increases by more people using it, which attracts even more customers.
Workers who lose their jobs because of a recession are experiencing A. cyclical unemployment. B. frictional unemployment. C. structural unemployment. D. seasonal unemployment.
A. cyclical unemployment.
How does the long-run equilibrium for a monopolistically competitive market differ from the long-run equilibrium for a perfectly competitive market? One way in which monopolistically competitive markets and perfectly competitive markets differ is that in long-run equilibrium, monopolistically competitive firms A. do not produce at minimum average total cost. B. do not earn zero economic profits. C. produce at minimum marginal cost. D. charge a price equal to marginal revenue. E. produce where marginal revenue is greater than marginal cost.
A. do not produce at minimum average total cost.
The more cell phones in use, the more valuable they become to consumers. This is an example of A. network externalities. B. what happens when a firm has control of a key resource. C. natural monopoly. D. what happens when a firm is granted a patent.
A. network externalities.
Refer to the graph to the right. Suppose initially one firm supplies 30 billion kilowatt-hours of electricity. If a second firm enters the market and each firm now supplies 15 billion kilowatt-hours of electricity, then the average total cost of electricity A. rises from $0.04 to $0.06. B. rises from $0.04 to $0.12. C. falls from $0.06 to $0.02. D. rises from $0.02 to $0.03.
A. rises from $0.04 to $0.06.
Which of the following rights is given to the holder of a patent? A. the exclusive right to a new product for a limited period B. a public franchise C. control over a key resource used in production of a good or service D. the right to earn profits from creation of the product indefinitely
A. the exclusive right to a new product for a limited period
Which of the following best represents total profit? A. the shaded rectangle B. the distance between points A and B C. the market price D. None of the above.
A. the shaded rectangle
Which of the following is an expression of profit for a perfectly competitive firm? Profit for a perfectly competitive firm can be expressed as A. Profit=(P−ATC)×Q, where P is price, Q is output, and ATC is average total cost. B. Profit=(P×Q)−(TC×Q), where P is price, Q is output, and TC is total cost. C. Profit=P−MC, where P is price and MC is marginal cost. D. Profit=P−ATC, where P is price and ATC is average total cost. E. Profit=P×Q, where P is price and Q is output.
A. Profit=(P−ATC)×Q, where P is price, Q is output, and ATC is average total cost.
If the market demand curve shifts to the right, how will a competitive firm's level of output change? A. The firm will increase its output, and its profits will increase. B. The firm will need to decrease its output and therefore suffer losses. C. The firm will keep its output constant, but its profits will increase. D. The firm will decrease its output, which will increase its profit.
A. The firm will increase its output, and its profits will increase.
A perfectly competitive firm is losing money in the short run, and its price is less than its average variable cost. In order to minimize its losses in the short run, this firm should A. shut down. B. increase its level of output. C. continue producing its current level of output. D. do none of the above.
A. shut down.
Refer to the graphs above. Suppose the graph on the left represents a typical firm's supply curve in a perfectly competitive industry, and there are 100 identical firms in the industry. What does the graph on the right represent? A. the market supply curve B. the individual demand curve facing each firm in the industry C. the average total cost curve for the industry D. the individual supply curve for each firm in the industry
A. the market supply curve
If income rises more slowly than the rate of inflation, purchasing power will rise. A. True B. False
B. False
Refer to the graph to the right. What point represents the price and output level combination that a monopoly will choose? A. Point A B. Point B C. Point C D. None of the above.
B. Point B
How would it affect the unemployment rate if the Bureau of Labor Statistics counted as unemployed both (1) discouraged workers and (2) people who work part-time but would prefer to work full-time? A. The unemployment rate would decrease. B. The unemployment rate would increase. C. The unemployment rate would remain the same because those people are already counted as unemployed. D. The annual unemployment rate would have been close to 50 percent in the last decade.
B. The unemployment rate would increase.
The short-term unemployment that arises from the process of matching workers with jobs is called A. seasonal unemployment. B. frictional unemployment. C. structural unemployment. D. cyclical unemployment.
B. frictional unemployment.
In April 2017, which of the following demographic groups had a higher rate of unemployment than the unemployment rate for the total population? A. whites B. high school dropouts C. college graduates D. asians
B. high school dropouts
Do consumers benefit in any way from monopolistic competition relative to perfect competition? Compared to perfect competition, when a consumer purchases a product from a monopolistically competitive firm, the consumer benefits from purchasing a product A. without coercion from advertising. B. is more closely suited to their tastes. C. whose marginal benefit to that consumer equals its marginal cost of production. D. that is not trade marked. E. that is produced at minimum average total cost.
B. is more closely suited to their tastes.
The real interest rate equals A. the nominal interest rate divided by the CPI for a given year. B. the nominal interest rate minus the inflation rate. C. the nominal interest rate plus the inflation rate. D. the inflation rate minus the nominal interest rate.
B. the nominal interest rate minus the inflation rate.
In the long run, the monopolist can earn A. only negative economic profit. B. zero or positive economic profit. C. only zero economic profit. D. None of the above.
B. zero or positive economic profit.
Using the broader definition of monopoly, in which of the following cases could we argue that Microsoft has a monopoly in computer operating systems? A. If Apple and Linux started to produce operating systems similar to Windows. B. If Apple's computer operating system and the Linux operating system were not considered close substitutes for Windows. C. If Microsoft charged prices similar to those that Apple and Linux charge for their operating systems in order to compete. D. If there are no barriers to entry in the market for computer operating systems.
B. If Apple's computer operating system and the Linux operating system were not considered close substitutes for Windows.
A buyer or seller that is unable to affect the market price is called A. an independent producer. B. a price taker. C. a monopoly. D. a price maker.
B. a price taker.
Refer to the graphs above. What do you expect to happen in this market as it approaches long-run equilibrium? A. a shift to the right of the market demand curve as new firms enter B. a shift to the right of the market supply curve as new firms enter C. a shift to the left of the market demand curve as new firms enter D. an upward shift of the firm's demand curve as new firms enter
B. a shift to the right of the market supply curve as new firms enter
A form of market structure studied by economists is monopoly. When is a firm a monopoly, or are monopolies only theoretical concepts that do not exist? A. Monopolies do not exist because many markets have barriers to entry. B. A firm is a monopoly if it earns economic profits at least in the short run. C. A firm is a monopoly if it can ignore the actions of all other firms. D. A firm is a monopoly if its economic profits are competed away in the long run. E. Monopolies do not exist because just about every product has substitutes.
C. A firm is a monopoly if it can ignore the actions of all other firms.
When a firm's demand curve slopes downward and the firm decides to cut price, which of the following happens? A. It sells more units and receives higher revenue per unit. B. It sells fewer units and receives lower revenue per unit. C. It sells more units but receives lower revenue per unit. D. It sells fewer units but receives higher revenue per unit.
C. It sells more units but receives lower revenue per unit.
Suppose that Sally J. Society recently lost her job as an underwater welder. In looking for a new job, she discovers that the only available jobs are for economists and that there are no openings for underwater welders because the trade is now obsolete. If Sally J. Society decides to return to school to earn an Economics degree, what is the best classification of her unemployment status? A. Cyclically unemployed B. Frictionally unemployed C. Structurally unemployed D. Seasonally unemployed
C. Structurally unemployed
A natural monopoly occurs when A. diseconomies of scale are large enough so that one firm can supply the entire market at a lower average total cost than can two or more firms. B. the average variable cost curve is increasing. C. economies of scale are large enough so that one firm can supply the entire market at a lower average total cost than can two or more firms. D. None of the above is true.
C. economies of scale are large enough so that one firm can supply the entire market at a lower average total cost than can two or more firms.
Many firms might like to be monopolies because such firms earn economic profits in the long run. What might cause a monopoly? A firm is likely to be a monopoly if A. its suppliers have no bargaining power. B. the market is not regulated by the government. C. economies of scale are so large that the firm has a natural monopoly. D. its product has complementary goods or services that are in high demand. E. there are no key inputs required for production.
C. economies of scale are so large that the firm has a natural monopoly.
The figure to the right illustrates market demand for a monopoly along with its average total cost (ATC) curve. Is the monopoly a natural monopoly? The firm A. is a natural monopoly because it has the potential to earn economic profits. B. is not a natural monopoly because it experiences diseconomies of scale. C. is a natural monopoly because it can supply the entire market at lower average total cost than can two or more firms. D. is not a natural monopoly because its demand curve is not infinitely elastic. E. is a natural monopoly because its demand curve is downward sloping.
C. is a natural monopoly because it can supply the entire market at lower average total cost than can two or more firms.
Is zero economic profit inevitable in the long run for monopolistically competitive firms? In the long run, monopolistically competitive firms A. may continue to earn profit by instead beginning to produce a product identical to competitors. B. will not continue to earn profit because the cost of production will rise as new firms enter the market. C. may continue to earn profit by improving their product. D. will continue to earn profit due to barriers to new firms entering the market. Your answer is not correct. E. will not continue to earn profit because monopolistically competitive firms produce identical products.
C. may continue to earn profit by improving their product.
Which are more economically efficient, perfectly competitive markets or monopolies? Compared to monopolies, perfectly competitive markets are A. moremore economically efficient because they produce where marginal revenue equals marginal cost. B. less economically efficient because they result in more economic surplus. C. more economically efficient because they result in more economic surplus. D. lessless economically efficient because they produce at higher average total cost. E. less economically efficient because they result in more deadweight loss.
C. more economically efficient because they result in more economic surplus.
Is the loss in efficiency due to market power large or small? Explain. The loss in efficiency due to market power is A. small because even firms without market power are economically inefficient. B. large because almost every industry is a monopoly with firms that have substantial market power. C. small because firms with substantial market power are rare. D. large because virtually every firm has at least some market power. E. small because almost every industry is perfectly competitive with firms that have no market power.
C. small because firms with substantial market power are rare.
Do consumers benefit in any way from monopolistic competition relative to perfect competition? Compared to perfect competition, when a consumer purchases a product from a monopolistically competitive firm, the consumer benefits from purchasing a product A. produced without government regulations. B. that is produced at minimum average total cost. C. that is more closely suited to their taste. D. without coercion from advertising. E. whose marginal benefit to that consumer equals its marginal cost of production.
C. that is more closely suited to their taste.
Suppose the market for fast-food value meals is monopolistically competitive, with many restaurants selling their own brand of food. Assume the restaurants in the industry behave optimally by maximizing profit. The figure represents the market for one monopolistically competitive firm's value meals. How will this figure change as the market moves toward long-run equilibrium? In the long run, A. nothing will change because the firms in this market are breaking even. B. nothing will change because monopolistically competitive markets have barriers to new firms entering. C. the demand curve will shift to the left and become more elastic because the firms are currently making profit. D. the average cost curve and the marginal cost curve will shift upup because the firms are currently making profitmaking profit. E. the demand curve will shift to the rightright and become more elasticelastic because the firms are currently experiencing lossesexperiencing losses.
C. the demand curve will shift to the left and become more elastic because the firms are currently making profit.
Refer to the graph to the right of the costs for a perfectly competitive firm. Which of the following best represents profit per unit of output? A. the market price B. the shaded rectangle C. the distance between points A and B D. None of the above.
C. the distance between points A and B
Suppose John Q. Worker is currently unemployed. Each day, John Q. Worker spends the entire day searching available job openings for an appropriate position given his set of skills, abilities, and interests. If someone asks John Q. what he does for work, he tells them that he is currently "in-between jobs." Which of the following best classifies John Q.'s unemployment status? A. Structurally unemployed B. Seasonally unemployed C. Cyclically unemployed D. Frictionally unemployed
D. Frictionally unemployed
What is the government's policy on collusion in the United States? Explain the rationale for this policy. In the United States A. the government encourages collusion with subsidies because resulting profits can be used to develop new products. B. the government promotes collusion with the Federal Trade Commission because perfectly competitive markets result in no deadweight loss. C. the government makes collusion illegal with antitrust laws because monopolies reduce economic efficiency. D. the government makes collusion legal with antitrust laws because monopolies create no deadweight loss. E. the government makes collusion unnecessary with government-imposed barriers to entry because monopolies enhance economic efficiency.
C. the government makes collusion illegal with antitrust laws because monopolies reduce economic efficiency.
Why does the government issue patents? The government issues patents A. to encourage competition among firms in markets with barriers to entry. B. to ensure that new products are safe and effective for consumers. C. to encourage firms to spend money on the research and development necessary to create new products D. to limit excessive economic profits in the short run before new firms have had time to enter profitable markets. E. to prevent firms from keeping secret how a product is made. How long do patents last?
C. to encourage firms to spend money on the research and development necessary to create new products. 20 years from the date the patent is filed with the government.
If the inflation rate is 6 percent and the nominal interest rate is 4 percent, then the real interest rate is A. 10 percent, which is the sum of the nominal interest rate and the inflation rate. B. 1.5 percent, which is the ratio of the nominal interest rate to the inflation rate. C. -2 percent, which is the nominal interest rate minus the inflation rate. D. 2 percent, which is the inflation rate minus the nominal interest rate.
C. -2 percent, which is the nominal interest rate minus the inflation rate.
A monopoly is a market structure that is characterized by A. many sellers selling differentiated products. B. a single seller of a good or service that has many close substitutes. C. a single seller of a good or service that does not have a close substitute. D. None of the above.
C. a single seller of a good or service that does not have a close substitute.
The increase in total revenue that results from selling one more unit of output is A. average revenue. B. marginal revenue. C. marginal cost. D. None of the above.
C. marginal cost.
How should firms in perfectly competitive markets decide how much to produce? Perfectly competitive firms should produce the quantity where A. the difference between fixed costs and variable costs is as large as possible. B. their individual price is as high as possible. C. the difference between total revenue and total cost is as large as possible. D. their individual price is equal to the market price. E. the market price is as low as possible.
C. the difference between total revenue and total cost is as large as possible.
In perfect competition, long-run equilibrium occurs when the economic profit is A. negative. B. positive. C. zero. D. None of the above.
C. zero.
What is the definition of monopoly? A. A monopoly is a firm that earns large economic profits. B. A monopoly is a firm that is the only seller of a product that can ignore the fixed cost. C. A monopoly is a firm that is created and regulated by the government. D. A monopoly is a firm that is the only seller of a product in a given industry. E. All of the above.
D. A monopoly is a firm that is the only seller of a product in a given industry.
The government can block the entry to a market through A. granting a copyright. B. granting a patent. C. granting a public franchise. D. All of the above.
D. All of the above.
What effect might market power have on technological change? Market power results in A. no barriers to entry, allowing new firms to begin producing technologically-improved substitutes. B. economic efficiency, which eliminates the need for new technology. C. marginal-cost pricing, leaving no resources with which to invest in new technology. D. economic profits that can be spent on research to develop new products. E. economic profits, leaving no incentive to develop new products.
D. economic profits that can be spent on research to develop new products.
Describe a monopoly's demand curve. A monopoly's demand curve A. is below the demand curve for the product. B. is vertical at the profit-maximizing quantity. C. is infinitely elastic and equal to the market price. D. is the same as the demand curve for the product. E. is the same as its marginal revenue curve.
D. is the same as the demand curve for the product.
Is zero economic profit inevitable in the long run for monopolistically competitive firms? In the long run, monopolistically competitive firms A. will not continue to earn profit because monopolistically competitive firms produce identical products. B. will not continue to earn profit because the cost of production will rise as new firms enter the market. C. may continue to earn profit by instead beginning to produce a product identical to competitors. D. may continue to earn profit by reducing costs. E. will continue to earn profit due to barriers to new firms entering the market.
D. may continue to earn profit by reducing costs.
In the long run, will new firms enter the market or will existing firms exit? In the long run, A. existing firms will exitexisting firms will exit because the firm is currently experiencing lossesexperiencing losses. B. firms will neither enter nor exit due to barriers. C. new firms will enter because the average total cost of production is decreasing. D. new firms will enter because the firm is currently making profit. E. new firms will enternew firms will enter because the firm is currently experiencing lossesexperiencing losses.
D. new firms will enter because the firm is currently making profit.
Suppose a local McDonald's hamburger restaurant raises the price of its cheeseburgers from $2.00 to $2.50. What will happen to the quantity of McDonald's cheeseburgers demanded? If McDonald's raises the price of it's cheeseburgers, then A. none of McDonald's customers will continue to demand McDonald's cheeseburgers because they can buy comparable cheeseburgers from other fast-food restaurants. B. some of McDonald's customers, but not all of them, will still demand McDonald's cheeseburgers because cheeseburgers from fast-food restaurants are identical. C. all of McDonald's customers will continue to demand McDonald's cheeseburgers because cheeseburgers from other fast-food restaurants are at least slightly differentiated. D. some of McDonald's customers, but not all of them, will still demand McDonald's cheeseburgers because they may prefer McDonald's cheeseburgers to cheeseburgers at other fast minus food restaurants. E. all of McDonald's customers will continue to demand McDonald's cheeseburgers because McDonald's faces no competition.
D. some of McDonald's customers, but not all of them, will still demand McDonald's cheeseburgers because they may prefer McDonald's cheeseburgers to cheeseburgers at other fast minus food restaurants.
Unemployment arising from a persistent mismatch between the skills and characteristics of workers and the requirements of jobs is called A. cyclical unemployment. B. seasonal unemployment. C. frictional unemployment. D. structural unemployment.
D. structural unemployment.
Refer to the graph to the right of the demand curve facing a firm in the perfectly competitive market for wheat. The fact that the demand curve is horizontal implies which of the following? A. The market demand for wheat is identical to the demand for wheat faced by an individual firm. B. The marginal revenue from the 7,500th bushel is greater than the marginal revenue from the 3,000th bushel. C. The firm must lower the price of wheat to increase the quantity demanded. D. The firm can sell any amount of output as long as it accepts the market price of $7.00.
D. The firm can sell any amount of output as long as it accepts the market price of $7.00.
Why is the unemployment rate, as measured by the Bureau of Labor Statistics, an imperfect measure of the extent of joblessness in the economy? A. It does not account for inaccurate responses to the Current Population Survey. B. Underemployed people are considered employed. C. It fails to account for illegal activities. D. Discouraged workers are not considered unemployed. E. All of the above.
E. All of the above.
Give an example of a public franchise and an example of a public enterprise. An example of a public franchise is A. a firm that is the sole, government-designated provider of natural gas, and an example of a public enterprise is a firm that sells a differentiated product such as clothing. B. the government directly providing sewage service, and an example of a public enterprise is a natural monopoly providing water. C. the government directly providing sewage service, and an example of a public enterprise is a firm that is the sole, government-designated provider of natural gas. D. a perfectly competitive peach farmer, and an example of a public enterprise is a duopoly that provides railroad transportation. E. a firm that is the sole, government-designated provider of electricity, and an example of a public enterprise is the government directly providing water.
E. a firm that is the sole, government-designated provider of electricity, and an example of a public enterprise is the government directly providing water.
Governments often have the potential to influence whether firms are monopolies How might the government affect whether a firm is a monopoly? The government could A. reduce taxes so that a firm benefits from diseconomies of scale. B. grant a copyright to a firm, making it a natural monopoly. C. grant a firm a public franchise, making it a natural monopoly. D. grant a firm a public enterprise, allowing it to benefit from network externalities. E. grant a patent to a firm, giving it the exclusive right to produce a product.
E. grant a patent to a firm, giving it the exclusive right to produce a product.
For many years, the Aluminum Company of America(Alcoa) essentially operated as a monopoly. What made this company a monopoly? A. the suppliers of bauxite, used to make aluminum, had substantial bargaining power. B. the buyers of aluminum had virtually no bargaining power. C. the input market for bauxite, used to make aluminum, was perfectly competitive. D. Bauxite, used to make aluminum, has many close substitutes that can also be used to produce aluminum. E. it had almost exclusive control of the world's supply of bauxite, used to make aluminum.
E. it had almost exclusive control of the world's supply of bauxite, used to make aluminum.
What conditions make a market perfectly competitive? A market is perfectly competitive if A. it has many buyers and a few sellers, all of whom are selling differentiated products, with no barriers to new firms entering the market. B. it has many buyers and one firm, which produces a product with no close substitutes, with barriers to new firms entering the market. C. it has many buyers and many sellers, all of whom are selling differentiated products, with no barriers to new firms entering the market. D. it has many buyers and a few sellers, all of whom are selling identical products, with barriers to new firms entering the market. E. it has many buyers and many sellers, all of whom are selling identical products, with no barriers to new firms entering the market.
E. it has many buyers and many sellers, all of whom are selling identical products, with no barriers to new firms entering the market.
What determines entry and exit of firms in a perfectly competitive industry in the long run? In a perfectly competitive industry in the long run, A. new firms will enter if price is above the shutdown point and existing firms will exit if price is below the shutdown point. B. new firms will enter if market demand exceeds market supply and existing firms will exit if market supply exceeds market demand. C. new firms cannot enter the market due to barriers but existing firms will exit if they are experiencing losses. D. new firms will enter if existing firms are making a profit and existing firms will exit if they are breaking even or experiencing losses. E. new firms will enter if existing firms are making a profit and existing firms will exit if they are experiencing losses.
E. new firms will enter if existing firms are making a profit and existing firms will exit if they are experiencing losses.
Which of the following formulas does the Bureau of Labor Statistics use to calculate the unemployment rate?
number of unemployed/ number in labor force x 100