Economists use labor-market data to evaluate how well an economy is using its most valuable resource-its people. Two closely watched statistics are the unemployment rate and the employment-population ratio (calculated as the percentage of the adult population that is employed). Indicate what happens to the unemployment rate and the employment-population ratio in each of the following scenarios. Effect On... Employment-Population Scenario Unemployment Rate Ratio A financial firm goes bankrupt and lays off its workers, who immediately start working in other financial firms. After a long search, some laid-off workers find new jobs. As a result of an economic boom, many students drop out of school and start working as soon as they become adults. A stock market crash leads to large-scale lay-offs of workers aged 55 and above, who decide to retire instead of looking for new jobs.

Economists use labor-market data to evaluate how well an economy is using its most valuable resource-its people. Two closely watched statistics are the unemployment rate and the employment-population ratio (calculated as the percentage of the adult population that is employed). Indicate what happens to the unemployment rate and the employment-population ratio in each of the following scenarios. Effect On... Employment-Population Scenario Unemployment Rate Ratio A financial firm goes bankrupt and lays off its workers, who immediately start working in other financial firms. After a long search, some laid-off workers find new jobs. As a result of an economic boom, many students drop out of school and start working as soon as they become adults. A stock market crash leads to large-scale lay-offs of workers aged 55 and above, who decide to retire instead of looking for new jobs.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

You have been asked to provide expertise on the macroeconomic conditions of several countries, and have been given the following information about the labor force, number of employed workers, and natural rate of unemployment in each country: Country Labor Force (millions) Employed (millions) Natural rate of unemployment Bumdumbourge 130 120 6.3% Mundelow 465 437 6.5% Totalslava 88 82 6.9% Potamia 285 264 7.3% Dortugal 311 295 5.5% Prance 396 355 9.2% a. From the data given, which country has the largest number of unemployed people? b. Totalslava has the smallest number of unemployed people; how does its unemployment rate compare to Bumdumbourge and Mundelow? c. Which countries are currently in recession? Which countries are experiencing a boom?
For the next question consider the data in the table below for a simple economy. Total Population 50,000 Working-Age Population 40,000 Employed 20,000 Unemployed 5,000 You learn that 2,000 citizens that are not in the labor force would like a job. Consider the 2,000 discouraged workers. The unemployment rate considering the discouraged workers (but not the involuntary part time workers) is Total Population 50,000 Working-Age Population 40,000 Employed 20,000 Unemployed 5,000 Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. a 31.2% 28.6% C 25.9% d 34.8%
Explain the difference between the natural rate of unemployment and the actual rate of unemployment as reported by the US Department of Labor.
Suppose that there is a recession similar to the one in 2008. What would happen to the equilibrium wage if the unemployment rate increased to 10%? Show this first on the labor discipline graph (nominal wage), then on the wage-setting curve graph (real wage).
Classify each of the below individuals as employed, unemployed, not in the labor force, or not in the adult, civilian, non-institutionalized population. A retiree who will work if a job becomes available but is not actively applying: employed unemployed not in the labor force not in the adult, civilian, non-institutionalized population An employee on temporary maternity/paternity leave: employedunemployednot in the labor forcenot in the adult, civilian, non-institutionalized population A student who has begun applying for jobs but has not yet found one: employed unemployed not in the labor forcenot in the adult, civilian, non-institutionalized population An actor who works part-time at a restaurant but is looking for full-time work: employed unemployed not in the labor forcenot in the adult, civilian, non-institutionalized population