Question

Consider a small economy composed of six people: Yakov, Ana, Charles, Dina, Juanita, and Gilberto. 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 Yakov is a 40-year-old autoworker who was laid off from his job 6 months ago. He is frustrated with his inability to find a new full-time position. Last week, he took a part-time job but was given only 3 hours of work. selector 1    Employed Not in the adult population Not in the labor force Unemployed Ana is a 23-year-old recent college graduate. She did not work for pay last week, but she had two job interviews. selector 2    Employed Not in the adult population Not in the labor force Unemployed Charles is a 78-year-old retired professor. He enjoys volunteering at the local public library. selector 3    Employed Not in the adult population Not in the labor force Unemployed Juanita 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. selector 4    Employed Not in the adult population Not in the labor force Unemployed Gilberto 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. selector 5    Employed Not in the adult population Not in the labor force Unemployed Dina is a 11-year-old student at East Valley Middle School. She babysits her younger brother and does other chores, so her parents give her an allowance of $20 per week. selector 6    Employed Not in the adult population Not in the labor force Unemployed Points: Close Explanation Explanation: Complete the right half of the following equation to reflect the labor force participation rate reported by the BLS. Labor Force Participation RateLabor Force Participation Rate = = selector 1    100×Number of Unemployed WorkersLabor Force100×Number of Unemployed WorkersLabor Force 100×Number in Labor ForceNumber of Employed Workers100×Number in Labor ForceNumber of Employed Workers 100×Number in Labor ForceAdult Population100×Number in Labor ForceAdult Population 100×Number of Employed WorkersAdult Population100×Number of Employed WorkersAdult Population Points: According to this formula, what is the labor force participation rate of this economy of six people? 40% 50% 80% 100% Points: Close Explanation Explanation: Complete the right half of the following equation to reflect the unemployment rate reported by the BLS. Unemployment RateUnemployment Rate = = selector 1    100×Number of Employed WorkersAdult Population100×Number of Employed WorkersAdult Population 100×Number in Labor ForceNumber of Employed Workers100×Number in Labor ForceNumber of Employed Workers 100×Number of Unemployed WorkersLabor Force100×Number of Unemployed WorkersLabor Force 100×Number in Labor ForceAdult Population100×Number in Labor ForceAdult Population Points: According to this formula, what is the unemployment rate of this economy of six people? 40% 50% 80% 100%

Answer 1

Yukov is Employed

Ana is Unemployed

Charles is Not in the labor force

Juanita is Unemployed

Gilberto is Employed

Dina is Not in the adult population

Labor Force Participation Rate = 100×Number in Labor Force/Adult Population

LFPR = 100*4/5 = 80%

Unemployment Rate = 100*Number of Unemployed Workers/Labor Force

Unemployment rate = 100*2/4 = 50%