Question

. The population of Willits is 100 people: 40 work full-time, 20 work half-time but would prefer to work fulltime, 10 are looking for a job, 10 would like to work but are so discouraged they have given up looking, 10 are not interested in working because they are full-time students, and 10 are retired. a. How many people are in the labor force? b. How many people are unemployed?

Answer 1

Answer:-

a)

Labor force:- The labor force is the number of people who are employed plus the unemployed who are looking for work.

Given,

Work full time = 40

Work half-time but would prefer to work fulltime = 20

Looking for a job = 10

Like to work but are so discouraged they have given up looking= 10

Not interested in working because they are full-time students = 10

Retired = 10

Labor Force = Number of Employed + Number of Unemployed(Work half-time but would prefer to work fulltime+ Looking for a job+ Like to work but are so discouraged they have given up looking)

                     = 40 + 20 + 10 + 10

                     = 80

Thus , 80 people are in the labor Force.

b)

Unemployed are those who are not employed at current period, but are available for and willing to work at prevailing wage rate in the market.

In the County E, 10 persons are looking for work and 10 are those who would like to work, but have given up looking for the work.However, they still form the part of labor force . thus the number of unemployed in country E can be calculated as follows:

Unemployed = Looking for Work

                     = 10

Thus, the number of unemployed is 10