1. Define the Labor Participation Rate (LFP). Then, for each of the following explain what is likely to happen to the LFP if: a. The Federal Minimum Wage is abolished b. The minimum working age is raised from 16 to 18 c. The economy is in the midst of a prolonged recession

1. Define the Labor Participation Rate (LFP). Then, for each of the following explain what is likely to happen to the LFP if: a. The Federal Minimum Wage is abolished b. The minimum working age is raised from 16 to 18 c. The economy is in the midst of a prolonged recession

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

### Understanding the Labor Participation Rate (LFP)

1. **Definition:**
Define the Labor Participation Rate (LFP). Then, for each of the following, explain what is likely to happen to the LFP if:

a. **The Federal Minimum Wage is abolished**

b. **The minimum working age is raised from 16 to 18**

c. **The economy is in the midst of a prolonged recession**

d. **The Federal Government reduces the duration of unemployment benefits from 26 weeks to 13 weeks**

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