Q1. Suppose the number of employed people in an economy is 121,166,640. the unemployment rate in this economy is 10.4 percent, and the labor force participation rate is 72.5 percent.
a. what is the size of the labor force?
b. how many people are unemployed?
c. what is the size of the working-age population?
Q2. Suppose the European Union (EU) is investigating a proposed merger between two of the largest distillers of premium Scotch liquor. Based on some economists' definition of the relevant market, the two firms proposing to merge enjoyed a combined market share of about two-thirds, while another firm essentially controlled the remaining share of the market. Additionally, suppose that the (wholesale) market elasticity of demand for Scotch liquor is -1.6 and that it costs $14.80 to produce and distribute each liter of Scotch.