EXPLORING ECONOMICS
EXPLORING ECONOMICS
8th Edition
ISBN: 2818000015614
Author: Sexton
Publisher: SAGE
Question
Book Icon
Chapter 18, Problem 1P
To determine

(a)

To compute:

The labor force participation rate for the given situation.

Expert Solution
Check Mark

Answer to Problem 1P

The labor force participation is 80% if the total adult population =200million, the labor force =160million and employment =140million.

Explanation of Solution

Given information:

Total adult population =200million

The labor force =160million

Calculation for labor force participation:

Laborforceparticipation=LaborforceTotaladultpopulation×100=160million200million×100=80

Hence, the labor force participation is 80%.

Economics Concept Introduction

Labor force participation:

It refers to that percentage of current total population that is willing to work or is working;which means the labor force in total adult population.

Laborforceparticipation=LaborforceTotaladultpopulation×100

To determine

(b)

To compute:

The labor force participation rate for the given situation.

Expert Solution
Check Mark

Answer to Problem 1P

The labor force participation is 70% if

Totaladultpopulation=200million, thelaborforce=140million,andemployment=120million.

Explanation of Solution

Given information:

Total adult population =200million

The labor force =140million

Calculation for labor force participation:

Laborforceparticipation=LaborforceTotaladultpopulation×100=140million200million×100=70

Labor force participation is 70%.

Economics Concept Introduction

Labor force participation:

It refers to that percentage of current total population that is willing to work or is working;which means the labor force in total adult population.

Laborforceparticipation=LaborforceTotaladultpopulation×100

To determine

(c)

To compute:

The labor force participation rate for the given situation.

Expert Solution
Check Mark

Answer to Problem 1P

Labor force participation will be 65% If 30million people have lost, their jobs and all of them exited the labor force

Explanation of Solution

Given information:

Total adult population =200million

The labor force =160million

Calculation for labor force participation:

  Laborforceparticipation=LaborforceTotaladultpopulation×100=160million200million×100=80

Labor force participation is 80%

It is the initial labor force participation.

Now, if 30million people have lost their jobs and all of them exit the labor force, then the new labor force will be130 million (160million30million).

The new labor force participation is,

Laborforceparticipation=LaborforceTotaladultpopulation×100=130200×100=65

Thus, the labor force participation will be 65% if 30million people lost their jobs and all of them exited the labor force.

Economics Concept Introduction

Labor force participation:

It refers to that percentage of current total population that is willing to work or is working;which means the labor force in total adult population.

Laborforceparticipation=LaborforceTotaladultpopulation×100

To determine

(d)

To compute:

The labor force participation rate for the given situation.

Expert Solution
Check Mark

Answer to Problem 1P

Labor force participation will be 85% if employment rises from 140million to 150million.

Explanation of Solution

Given information:

Total adult population =200million

The labor force =160million

Calculation for labor force participation:

Laborforceparticipation=LaborforceTotaladultpopulation×100=160million200million×100=80

Labor force participation is 80%. It is the initial labor force participation.

Now,

If employment rose from 140million to 150million, this means the labor force increased from 160milllion and 10million .Total number of labor force is 170million.

Calculation of labor force participation:

Laborforceparticipation=LaborforceTotaladultpopulation×100=170million200million×100=85

Thus, the labor force participation will be 85% if employment rose from 140million to 150million.

Economics Concept Introduction

Labor force participation:

It refers to that percentage of current total population that is willing to work or is working;which means the labor force in total adult population.

Laborforceparticipation=LaborforceTotaladultpopulation×100

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!
Students have asked these similar questions
5. Discrimination in the labor market The following table exhibits the name, gender, height, and minimum wage 10 people are willing to accept to work as travel nurses at a regional hospital. Name Gender Height Minimum Wage (Inches) (Dollars per week) Cho F 65 $297 Frances F 64 $316 Latasha F 68 $336 Dmitri M 70 $355 Jake M 71 $374 Rosa F 65 $393 Nick M 72 $420 Brian M 71 $439 Tim M 66 $451 Alyssa F 68 $478 The lowest weekly wage that the hospital can spend in order to hire five travel nurses is ________. Suppose the hiring director of the hospital prefers taller candidates because they think it will increase revenue, and so they impose a requirement that all newly hired travel nurses must have a height of at least 68 inches. With this mandate in place, the weekly wage rate the hospital now must pay in order to hire five travel nurses increases by ________.
5. Discrimination in the labor market The following table exhibits the name, gender, height, and minimum wage 10 people are willing to accept to work as human resource specialists at a large financial firm. Name Gender Height Minimum Wage (Inches) (Dollars per week) Paolo M 67 $298 Ginny F 63 $311 Lucia F 66 $332 Eric M 71 $354 Kenji M 69 $375 Sharon F 66 $397 Paolo M 70 $411 Carlos M 70 $440 Van M 64 $452 Amy F 69 $474 The lowest weekly wage that the financial firm can spend in order to hire five human resource specialists is____. Suppose the hiring director of the financial firm prefers taller candidates because they think it will increase revenue, and so they impose a requirement that all newly hired human resource specialists must have a height of at least 67 inches. With this mandate in place, the weekly wage rate the financial firm now must pay in order to hire five human resource specialists increases by_____.
not use ai please
Knowledge Booster
Background pattern image
Similar questions
SEE MORE QUESTIONS
Recommended textbooks for you
Text book image
Exploring Economics
Economics
ISBN:9781544336329
Author:Robert L. Sexton
Publisher:SAGE Publications, Inc
Text book image
Economics:
Economics
ISBN:9781285859460
Author:BOYES, William
Publisher:Cengage Learning
Text book image
Macroeconomics: Private and Public Choice (MindTa...
Economics
ISBN:9781305506756
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:Cengage Learning
Text book image
Economics: Private and Public Choice (MindTap Cou...
Economics
ISBN:9781305506725
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:Cengage Learning
Text book image
Economics (MindTap Course List)
Economics
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Cengage Learning
Text book image
Macroeconomics
Economics
ISBN:9781337617390
Author:Roger A. Arnold
Publisher:Cengage Learning