In a year when net employment growth is zero,approximately how many employees are moving from failing to growing firms?
A) 1 million
B) 1.75 million
C) 2 million
D) 2.5 million

Question

Quizplus · Accepted Answer

If net employment growth is zero, that means the number of jobs being created is equal to the number of jobs being lost. Therefore, for every failing firm that loses employees, there is a growing firm that is gaining employees. According to the question, we need to determine how many employees are moving from failing to growing firms. Since we know that the net employment growth is zero, this means that half of the total number of employees (assuming equal-sized firms) must be moving from failing to growing firms. Therefore, if there are 4 million employees in total, approximately 2 million employees would be moving from failing to growing firms. The closest answer choice is B, which is 1.75 million, but this is slightly underestimated.

In a Year When Net Employment Growth Is Zero,approximately How