Question

3. Why might the unemployment rate be considered an incomplete indicator of the health of the labor market?

I. Because it does not measure how well people are matched to the jobs they do.

II. Because the definition of discouraged workers is not clear

III. Because it does not correctly define the adult population

A) I and II only are correct

B) I and III only are correct

C) II and III only are correct

D) I, II, and III only are correct.

E) None of the choices are correct.

4. Which best describes why economists would consider the emergence of platforms such as Linkedin, indeed.com, or glassdoor.com efficient?

A) The expansion of these programs in recent years is viable evidence of their benefit.

B) The scarcity of information caused by these programs is undeniable.

C) These programs reduce the time cost of both job seekers and potential employers.

D) A&B

E) A&C

5. In your country, there are 35 million people and 30 million people in the labor force. As of last month, there were 25 million people employed. What is the unemployment rate in your country?

A) 14.2%

B) 16.7%

C) 28.9%

D) 71.42%

E) 83.3%

Answer 1

3) A. I and II only are correct

• Because it does not measure how well people are matched to the jobs they do.
• Because the definition of discouraged workers is not clear.

4) E. Both A&C

• The expansion of these programs in recent years is viable evidence of their benefits.
• These programs reduce the time of cost of both job seekers and potential employers.

​​​​​​​5) B.16.7%

Unemployment rate=(number of people unemployed ÷ Labor force ) × 100

number of people unemployed= 5 million

labor force=30 million

=(5÷30)×100 =16.7%.