a)
The question requires us to determine the size of the labor force.
a)
Answer to Problem 1FRQ
The size of the labor force is 6 million.
Explanation of Solution
Given,
Therefore, the size of the labor force is 6 million.
The labor force is the sum of the employed and unemployed population in a workforce.
The people are considered employed who are already working and getting some compensation for their working hours, while the people are considered unemployed who are not working now, but actively looking for a job.
b)
The question requires us to determine the labor force participation rate.
b)
Answer to Problem 1FRQ
The labor force participation rate is 50%.
Explanation of Solution
Given,
Population age 16 and older = 12 million
Labor force = 6 million
Insert these values:
The labor force participation rate is 50%.
The following expression represents the formula for the labor force participation rate:
c)
The question requires us to determine the
c)
Answer to Problem 1FRQ
Thus, the unemployment rate is 16.66 percent.
Explanation of Solution
Given,
Unemployment = 1 million
Labor force = 6 million
Insert these values in the unemployment rate formula:
Thus, the unemployment rate is 16.66 percent.
People are considered unemployed if they are not working currently but actively looking for a job.
The unemployment rate is the ratio of the number of unemployed people to the labor force in an economy.
Where the labor force is the sum of employed and unemployed people in an economy.
Chapter 12 Solutions
Krugman's Economics For The Ap® Course
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