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. Scenario A financial firm goes bankrupt and lays off its workers, who immediately start working in other financial firms. After an unsuccessful search, some laid-off workers decide to go back to school as full-time students. Numerous students graduate from college but cannot find work. 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. Unemployment Rate Stays the same Stays the same Increases Increases Effect On... Employment-Population Ratio Stays the same Stays the same Decreases Decreases

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. Scenario A financial firm goes bankrupt and lays off its workers, who immediately start working in other financial firms. After an unsuccessful search, some laid-off workers decide to go back to school as full-time students. Numerous students graduate from college but cannot find work. 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. Unemployment Rate Stays the same Stays the same Increases Increases Effect On... Employment-Population Ratio Stays the same Stays the same Decreases Decreases

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

5. Problems and Applications Q5
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.
Scenario
A financial firm goes bankrupt and lays off its workers, who immediately start
working in other financial firms.
After an unsuccessful search, some laid-off workers decide to go back to school as
full-time students.
Numerous students graduate from college but cannot find work.
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.
Unemployment Rate
Stays the same
Stays the same
Increases
Increases
Effect On...
Employment-Population
Ratio
Stays the same
Stays the same
Decreases
Decreases

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