Question

4. The town of Cuomoville consists of the following individuals:

            Zach is a jet fighter pilot in the Air Force.

            Yvette is employed part time as the Town Librarian.

            Xavier has his own carpentry business.

            Wanda works full time at the local flour mill.

            Victor has not been able to find a job for two years and has given up looking for work,

Ursula usually works as a teacher, but she has been home for the month out sick.

            Thomas works 60 hours per week as a marijuana grower and dealer in New York State.

            Samantha was just laid off from Home Depot and is actively seeking a new job.

            Robert works four hours per week as a lounge musician.

            Quincy is a recent college graduate and he has been busy looking for his first real job.

            Patricia is employed full time as a lawyer.

            Ophelia is a college student with a part-time job as a waitress.

a. What is the size of the labor force in Coumoville?

b. What is the unemployment rate?

c. If Zach and Xavier both kill each other in a duel, how does the unemployment rate change?

Answer 1

Person	employement status
Z	not in labor force
X	employed
Y	employed
W	employed
V	not in labor force
U	employed
T	employed
S	unemployed
R	employed
Q	unemployed
P	employed
O	employed

A) size of labor force = employed + unemployed people

= 10

B) unemployed rate = number of unemployed / labor force size

= 2/10

= .2

= 20%

C) Z is not in labor force , as he is part of armed forces

X is employed

So now labor force = 9

UNEMPLOYMENT rate = 2/9

= .222

= 22.2%

so UNEMPLOYMENT rate rises