Exploring Economics
Exploring Economics
8th Edition
ISBN: 9781544336329
Author: Robert L. Sexton
Publisher: SAGE Publications, Inc
Question
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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

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