Question

5.         What does the natural unemployment rate include?

            a.         both frictional and structural unemployment

            b.         neither frictional nor structural unemployment

            c.         structural unemployment, but not frictional unemployment

            d.         frictional unemployment, but not structural unemployment

Answer:

6.         A foreign governmental statistics agency recently reported that there were 47.6 millionpeople over age 25 who had at least a bachelor’s degree. Of this number, 38.0

            million were in the labour force and 35.9 million were employed. What was the unemployment rate in this group?

            a.         about 2.3 percent

            b.         about 5.5 percent

            c.         about 22.8 percent

            d.         about 55.1 percent

Answer:

7.         Emma`s contract position just finished and she is looking for another job, but has not yet found one. Which pair of categories does Anna now belong to?

            a.         unemployed and not in the labour force

            b.         unemployed and in the labour force

            c.         employed and not in the labour force

            d.         employed and in the labour force

Answer:

8.         The following people are currently out of work: Deb, who is actively looking for a job; Ted, who is not looking for a job because he doesn’t think he could find one; Alex who is working part-time but is looking for full-time work; and Cam, who is not

            looking for a job because he takes care of his twin sons. Who does Statistics Canada consider to be unemployed?

            a.         Deb

            b.         Ted

            c.         Kat

            d.         Cam

Answer:

Answer 1

Ans) Employed is one who is currently working part time or full time under certain payroll.

Unemployed is one who is able and willing to work and is actively looking for job. According to this definition, those who are not actively looking for job are dropped from unemployed category.

Labour force = employed + unemployed

Since those who are not actively looking for job do not find place in either employed or unemployed category, they are considered out of labour force.

Rate of unemployment = (unemployed ÷labour force) ×100

8) Here only Deb is actively looking for job. While Ted and Cam are not looking for job and are hence out of labour force. Alex is working part time and is employed.

So, bls will consider Deb as unemployed.

Option a.

7) Emma is not currently working anywhere and is actively looking for job. So she will be classified under unemployed and in labor force.

Option b is correct.

5) Natural rate of unemployment is the minimum level of unemployment. Even the healthy economy will have this rate of unemployment due to presence of structural and Frictional unemployment.

Option a is correct.

6) labour force = 38 million.

Employed = 35.9 million

Unemployed = 38 million - 35.9 million = 2.1 million

Unemployment rate = (unemployed ÷ labour force)×100 = (2.1million ÷ 38 million) ×100 = 5.5%

Option b is correct.