1. Measuring employment, unemployment, and labor force participation Consider a
ID: 1162837 • Letter: 1
Question
1. Measuring employment, unemployment, and labor force participation
Consider a small economy composed of six people: Musashi, Rina, Sean, Yvette, Cho, and Bob. Each person's employment status is described in the following table.
Based on the criteria used by the Bureau of Labor Statistics (BLS), identify each person’s status as employed, unemployed, “not in the labor force” (if not in the civilian labor force but still part of the adult population), or “not in the adult population” if not in the civilian adult population.
Complete the right half of the following equation to reflect the labor force participation rate reported by the BLS.
According to this formula, what is the labor force participation rate of this economy of six people?
40%
50%
80%
100%
Complete the right half of the following equation to reflect the unemployment rate reported by the BLS.
According to this formula, what is the unemployment rate of this economy of six people?
40%
50%
80%
100%
Person Status Musashi is a 24-year-old professional tennis player. When he's not competing, he works as a coach at a local tennis club. Rina is a 30-year-old professional basketball player. She finished her last season as a player 3 weeks ago and is currently interviewing for a coaching position. Sean is a 77-year-old retired professor. He enjoys volunteering at the local public library. Cho is a 31-year-old science teacher who taught at West Valley Middle School last year. Due to budget cuts, she was laid off at the end of the school year. It's the summer now, and after a few weeks of vacation with her family, she is looking for a part-time job as a tutor. Bob is a 20-year-old American Studies major at the University of Tennessee. It's summer now, and he is working as a lifeguard in Mobile, Alabama. Yvette is a 12-year-old student at West Valley Middle School. She babysits her younger sister and does other chores, so her parents give her an allowance of $25 per week.Explanation / Answer
Measuring employment, unemployment, and labor force participation
Consider a small economy composed of six people: Musashi, Rina, Sean, Yvette, Cho, and Bob. Each person's employment status is described in the following table.
Based on the criteria used by the Bureau of Labor Statistics (BLS), identify each person’s status as employed, unemployed, “not in the labor force” (if not in the civilian labor force but still part of the adult population), or “not in the adult population” if not in the civilian adult population.
Person
Status
Musashi is a 24-year-old professional tennis player. When he's not competing, he works as a coach at a local tennis club.
Employed
Rina is a 30-year-old professional basketball player. She finished her last season as a player 3 weeks ago and is currently interviewing for a coaching position.
UNEMPLOYED
Sean is a 77-year-old retired professor. He enjoys volunteering at the local public library.
Not in the labour force
Cho is a 31-year-old science teacher who taught at West Valley Middle School last year. Due to budget cuts, she was laid off at the end of the school year. It's the summer now, and after a few weeks of vacation with her family, she is looking for a part-time job as a tutor.
UNEMPLOYED
Bob is a 20-year-old American Studies major at the University of Tennessee. It's summer now, and he is working as a lifeguard in Mobile, Alabama.
Employed
Yvette is a 12-year-old student at West Valley Middle School. She babysits her younger sister and does other chores, so her parents give her an allowance of $25 per week.
Not in the adult population
Labor Force Participation Rate = Number in Labour Force/Adult Population*100
Labour Force = Employed + Unemployed
Adult Population = 05
Number in Labour Force = 04
According to this formula, what is the labor force participation rate of this economy of six people?
Labor Force Participation Rate = 04/05*100
Labor Force Participation Rate = 80%
Unemployment Rate = Unemployed/Labour Force*100
According to this formula, what is the unemployment rate of this economy of six people?
Unemployment Rate = Unemployed/Labour Force*100
Unemployment Rate = 02/04*100
Unemployment Rate = 50%
Person
Status
Musashi is a 24-year-old professional tennis player. When he's not competing, he works as a coach at a local tennis club.
Employed
Rina is a 30-year-old professional basketball player. She finished her last season as a player 3 weeks ago and is currently interviewing for a coaching position.
UNEMPLOYED
Sean is a 77-year-old retired professor. He enjoys volunteering at the local public library.
Not in the labour force
Cho is a 31-year-old science teacher who taught at West Valley Middle School last year. Due to budget cuts, she was laid off at the end of the school year. It's the summer now, and after a few weeks of vacation with her family, she is looking for a part-time job as a tutor.
UNEMPLOYED
Bob is a 20-year-old American Studies major at the University of Tennessee. It's summer now, and he is working as a lifeguard in Mobile, Alabama.
Employed
Yvette is a 12-year-old student at West Valley Middle School. She babysits her younger sister and does other chores, so her parents give her an allowance of $25 per week.
Not in the adult population
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