Consider a hypothetical economy in which the labor force consists of 200 people. Of those, 180 people are employed full-time and 20 people areunemployed. The economy follows the same conventions as the U.S. Bureau of Labor Statistics (BLS) in computing its employment figures. Therefore,initially the unemployment rate is calculated as follows:Unemployment RateNumber of Unemployed PeopleNumber of People in the Labor Forceх 10020х 100200= 10%Suppose a reduction in foreign demand for this economy's products causes an economic recession-a prolonged period of declining output. Thefollowing table offers two possible scenarios resulting from the recession.Calculate the unemployment rate associated with each scenario in the following table. Assume that each scenario describes the only labor marketchanges in this economy.ScenarioUnemployment RateA: Firms reduce work hours by 10%. The number of involuntary part-time workers rises%as firms respond to the reduction in the demand for their products by reducing the hoursof each employed person from 40 to 36 hours per week.B: Firms reduce employment by 10%. The number of unemployed workers rises as firmsrespond to the reduction in the demand for their products by laying off 18 previouslyemployed workers.True or False: The unemployment rate for scenario A in the previous table overstates the true extent of underemployment in the economy because theBLS counts part-time workers as employed.O TrueFalseI|||

Total Labor Force consists of both Employed and Unemployed Workers. Unemployment Rate = Total…

Answered: Consider a hypothetical economy in…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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If the unemployment rate is approximately 6.1% then it must be true that there is Unemployed = 5 million persons & Employed = 150 million persons Unemployed = 10 million persons & Employed = 155 million persons Unemployed = 2.5 million persons & Employed = 75 million persons Unemployed = 15 million persons & Employed = 175 million persons
Classify each statement about the U.S. unemployment rate as true or false. True False Answer Bank Changes in technology and new workers joining the workforce have coñtributed to an overall upward trend in the unemployment rate. It is very likely that an unemployment rate of 0% will never be observed. The end of the 20th century saw some of the highest rates of unemployment in US history. Unemployment generally remains stable and static over time, The behavior of the unemployment rate is related to the business cycle.
a ) Marie recently graduated from college with a degree in electrical engineering, but she has not yet started working. When will she be counted as “unemployed” according to the BLS? b) Eric was laid off, but he is expecting to be recalled. He has not looked for work since being laid off. Natalie is not employed, nor was she laid off. Who is counted as “unemployed” in the U.S. labor force statistics? c) What are the four different types of unemployment? Explain each.
The rate of job separations in the economy is 0.013 (1.3 percent) and rate of job finding is 0.25 (25 percent). a) If the economy has 500 workers in the labor force, calculate the unemployment rate and the number of unemployed in the steady state. b) If the rate of job separations is 1 percent, what happens to the unemployment rate and the number of unemployed in the steady state? c) If labor force suddenly increases by 20 workers who are seeking work (and the rate of job separations remains at 1 percent), what is the immediate change in the unemployment rate? What is the new steady-state unemployment rate? Draw a graph on how unemployment rate evolves in time.
Yermo, California, has a labor force of 5,000 persons and employment of 4,100. The unemployment rate for the city is? (Please specify answer in percentage. If answer is .06, then convert to percentage and enter 6. NO NEEDT TO ENTER % OR PERCENT SIGN. Convert answer by either moving decimal point two places to the right or multiplying by 100),
Suppose that New Zombie has adopted the framework used by the US Bureau of Labor Statistics to calculate its labor force statistics. Following information is extracted from a database maintained by the country's ministry of labor: See attached for table. Question 1 Calculate the unemployment rate and the labor force of New Zombie. Show your calculation. (See next page for the formula and directions for this problem). To calculate the unemployment rate you have to use the formula: Unemployment rate = # of unemployed ÷ labor force × 100% The BLS is the Bureau of Labor Statistics, an agency within the Department of Labor. The unemployment rate is calculated by taking a random survey of 60,000 households nationwide. (Note: Households are in the survey for four months, out for eight, back in for four, and then out for good. Interviewers use the phone or home visits using laptops.) The population is divided into three groups: Group 1 consists of those under age 16 or institutionalized.…
What is the unemployment rate in an economy where the entire adult population can be categorized as follows: • 32 million people employed • 2 million people unemployed • 1 million discouraged workers, and • 1 million people who are either students, homemakers, retirees, or other people not seeking employment. 6.3% 5.6% 5.9% 4.8%
Measuring employment, unemployment, and labor force participation Consider a small economy composed of six people: Carlos, Deborah, Felix, Janet, Megan, and Larry. 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.
The table below shows unemployment and labor force statistics for an economy. Actual rate of unemployment 3% Natural rate of unemployment 4% Population of the country 125 million Number of people employed 97 million Number of people unemployed 3 million Number of people employed part time 5 million Number of people discouraged workers 2 million Would the number of people employed part-time be included in labour force or not? Given the state of the economy described in the table, is actual real output less than, greater than, or equal to potential real output? Explain. Calculate what the cyclical unemployment rate would be if the actual rate of unemployment increased to 5 percent. Suppose discouraged workers reenter the labor force and find employment. Will the actual rate of unemployment increase, decrease, or stay the same?
In the country of Economica, the total labor force consists of 5,000 workers. 250 of these workers are unemployed, and thus the current unemployment rate is 5.0%. This year, 100 workers will lose their jobs, 85 workers will return to the labor force after an absence, 50 workers will voluntarily leave their jobs, and 250 new workers will enter the labor force. At the same time, 363 workers will find jobs, and 150 workers will retire or leave the labor force for other reasons. Thus, at the end of the year, the labor force will consist of workers, and the unemployment rate will be%. (Round your responses to one decimal place.)
The table describes hypothetical employment statistics for a country in a given year. Full-time workers and voluntary part-time workers 156 million Labor force 168 million Involuntary part-time workers Discouraged workers Based on the information, what is the unemployment rate? Enter your answer as percentage rounded to one decimal place. 4 million 2 million %2
Assume you have the following information about the unemployment rate among differentgroups in the labor force: adult males 5%, adult females 4.5%, and teenagers 12%. Teenagers account for15% of the work force and, women account for 40% of the adult labor force. What is the actual nationwideunemployment rate?

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