This is because the unemployment rate give only takes into account people that are unemployed and are looking for work. It does not account for those that are unemployed and have given up.
ex) A woman who looses her job because of technological advances is looking for work and is considered unemployed (taken into account), however a man who has tried looking for work after he was laid off has given up (not counted)
ex) A woman lost her job during the depression and cant seem to get a job with her limited skills. She has given up and is not counted in the unemployment rate
Answer:
c. The statement is false because the demand for incandescent light bulbs would increase as the price of compact fluor. light bulbs fell.
Explanation:
If improvements in production technology reduce the price of incadescent light bulbs, the normal thing that would happen is that demand for this good would increase, because now people will be able to buy the good at a lower price.
The answer would be: derived demand
Hope it helps! ///////////
