Suppose the adult population over the age of
The number of people not in the labor force and the proportions of employed, unemployed and not in the labor force.
Answer to Problem 1SCQ
Thenumber of people not in the labor forceis 83.9mn.
The proportion of people employed is 90.38%.
The proportion of people unemployed is 9.61%.
The proportion of people not in the labor force is 35.28%.
Explanation of Solution
Not in the labor force: It refers to those who are either not willing or able to work. It is calculated by subtracting the number of people in the labor force from the total adult population (over the age of 16).
Given Information:
Total Adult population (>16 years), say, N = 237.8mn
Labor force (L) = 153.9mn
Employed (E) = 139.1mn
Calculation:
Calculating the number of people not in the labor force by using the formula below:
Thus, the number of people not in the labor force = 83.9mn.
Proportion/ Percentage of Employed: It refers to the proportion of those people who belong to the labor force and are working to those who are in the labor force.
Given Information:
Total Adult population (>16 years), say, N = 237.8mn
Labor force (L) = 153.9mn
Employed (E) = 139.1mn
Calculation:
Using the formula below, we calculate the percentage of people employed.
Thus, the percentage of people employed is 90.38%.
Proportion/ Percentage of Unemployed: It is the proportion of number of people who belong to the labor force but do not possess job to the number of people who belong to the labor force.
Given Information:
Total Adult population (>16 years), say, N = 237.8mn
Labor force (L) = 153.9mn
Employed (E) = 139.1mn
Calculation:
First, we calculate the number of people unemployed as follows:
Now, we calculate the percentage of people unemployed as follows:
Thus, the percentage of people unemployed is 9.61%.
Proportion/ Percentage of Not in labor force: It is the proportion of those who are either not willing or not able to work to total adult population.
Given Information:
Total Adult population (>16 years), say, N = 237.8mn
Labor force (L) = 153.9mn
Employed (E) = 139.1mn
Also, above we have calculated the number of people who are not in labor force as 83.9mn.
Calculation:
Now, we calculate the percentage of people not in the labor force as follows:
Thus, the percentage of people not in the labor force is 35.28%.
Labor force: In an economy, labor force refers to the part of the working age population (aged 15-69) that is willing and able to work. It is the sum of employed and unemployed people.
Not in the labor force: In an economy, the people who are either not able to work or not willing to work are said to be ‘out of the labor force’ or ‘not in the labor force’. Such people may either be retired (not in the working age population), children (below 15 years of age), students who belong to working age but currently not working, people on parental leave or maternity break, those who have taken voluntary break from work, those who have voluntarily taken premature retirement, etc.
Employed: Those people who belong to the labor force and are working belong to the employed category.
Unemployed: This includes the people who are willing and able to work but do not possess job.
Want to see more full solutions like this?
Chapter 21 Solutions
Principles of Economics 2e
Additional Business Textbook Solutions
Intermediate Accounting (2nd Edition)
Horngren's Accounting (12th Edition)
Operations Management: Processes and Supply Chains (12th Edition) (What's New in Operations Management)
Horngren's Financial & Managerial Accounting, The Financial Chapters (Book & Access Card)
Engineering Economy (17th Edition)
- Please answer step by steparrow_forwardSuppose there are two firms 1 and 2, whose abatement costs are given by c₁ (e₁) and C2 (е2), where e denotes emissions and subscripts denote the firm. We assume that c{(e) 0 for i = 1,2 and for any level of emission e we have c₁'(e) # c₂' (e). Furthermore, assume the two firms make different contributions towards pollution concentration in a nearby river captured by the transfer coefficients ε₁ and 2 such that for any level of emission e we have C₂'(e) # The regulator does not know the resulting C₁'(e) Τι environmental damages. Using an analytical approach explain carefully how the regulator may limit the concentration of pollution using (i) a Pigouvian tax scheme and (ii) uniform emissions standards. Discuss the cost-effectiveness of both approaches to control pollution.arrow_forwardBill’s father read that each year a car’s value declines by 10%. He also read that a new car’s value declines by 12% as it is driven off the dealer’s lot. Maintenance costs and the costs of “car problems” are only $200 per year during the 2-year warranty period. Then they jump to $750 per year, with an annual increase of $500 per year.Bill’s dad wants to keep his annual cost of car ownership low. The car he prefers cost $30,000 new, and he uses an interest rate of 8%. For this car, the new vehicle warranty is transferrable.(a) If he buys the car new, what is the minimum cost life? What is the minimum EUAC?(b) If he buys the car after it is 2 years old, what is the minimum cost life? What is the minimum EUAC?(c) If he buys the car after it is 4 years old, what is the minimum cost life? What is the minimum EUAC?(d) If he buys the car after it is 6 years old, what is the minimum cost life? What is the minimum EUAC?(e) What strategy do you recommend? Why? Please show each step and formula,…arrow_forward
- O’Leary Engineering Corp. has been depreciating a $50,000 machine for the last 3 years. The asset was just sold for 60% of its first cost. What is the size of the recaptured depreciation or loss at disposal using the following depreciation methods?(a) Straight-line with N = 8 and S = 2000(b) Double declining balance with N = 8(c) 40% bonus depreciation with the balance using 7-year MACRS Please show every step and formula, don't use excel. The answer should be (a) $2000 loss, (b) $8000 deo recap, (c) $14257 dep recap, thank you.arrow_forwardThe cost of garbage pickup in Green Gulch is $4,500,000 for Year 1. The population is increasing at 6%, the nominal cost per ton is increasing at 5%, and the general inflation rate is estimated at 4%.(a) Estimate the cost in Year 4 in Year-1 dollars and in nominal dollars.(b) Reference a data source for trends in volume of garbage per person. How does including this change your answer? Please show every step and formula, don't use excel. The answer should be $6.20M, $5.2M, thank you.arrow_forwardPlease show each step with formulas, don't use Excel. The answer should be 4 years, $16,861.arrow_forward
- Assume general inflation is 2.5% per year. What is the price tag in 8 years for an item that has an inflation rate of 4.5% that costs $700 today? Please show every step and formula, don't use excel. The answer should be $1203, thank you.arrow_forwardThe average cost of a certain model car was $22,000 ten years ago. This year the average cost is $35,000.(a) Calculate the average monthly inflation rate (fm) for this model.(b) Given the monthly rate fm, what is the effective annual rate, f, of inflation for this model?(c) Estimate what these will sell for 10 years from now, expressed in today’s dollars. Please show all steps and formulas, don't use excel. The answer should be (a) 0.3877%, (b) 4.753%, (c) $55,682arrow_forwardA mining corporation purchased $120,000 of production machinery and depreciated it using 40% bonus depreciation with the balance using 5-year MACRS depreciation, a 5-year depreciable life, and zero salvage value. The corporation is a profitable one that has a 22% combined incremental tax rate. At the end of 5 years the mining company changed its method of operation and sold the production machinery for $40,000. During the 5 years the machinery was used, it reduced mine operation costs by $32,000 a year before taxes. If the company MARR is 12% after taxes, was the investment in the machinery a satisfactory one? Please show every step with formulas and don't use excel. The answer should be 14.8%, thank you.arrow_forward
- An engineer is working on the layout of a new research and experimentation facility. Two operators will be required. If, however, an additional $100,000 of instrumentation and remote controls were added, the plant could be run by a single operator. The total before-tax cost of each plant operator is projected at $35,000 per year. The instrumentation and controls will be depreciated by means of a modified accelerated cost recovery system (MACRS). If this corporation (22% combined corporate tax rate) invests in the additional instrumentation and controls. how long will it take for the after-tax benefits to equal the $100,000 cost? In other words, what is the after-tax payback period? Please write out every step and formula, don't use excel. The answer should be 3.08 years, thank you.arrow_forwardThe effective combined tax rate in a firm is 28%. An outlay of $2 million for certain new assets is under consideration. Over the next 9 years, these assets will be responsible for annual receipts of $650,000 and annual disbursements (other than for income tax) of $225,000. After this time, they will be used only for stand-by purposes with no future excess of receipts over disbursements. (a) What is the prospective rate of return before income taxes? (b)What is the prospective rate of return after taxes if straight-line depreciation can be used to write off these assets for tax purposes in 9 years? (c) What is the prospective rate of return after taxes if it is assumed that these assets must be written off for tax purposes over the next 20 years, using straight-line depreciation? Please write out each step with formulas and don't use Excel. The answers should be (a)15.4% (b) 11.5% (c) 10.0%, thank youarrow_forward- 1. (Maximum length one page) Consider an infectious disease with the following characteristics: Individuals can exist in three states, susceptible, infected, and recovered. Once recovered, an individual cannot be re-infected and remains immune for life. The transmission rate, t, is 1/20. The recovery rate, k, is 1/5. Each person interacts randomly with others in the population and has contacts with 10 people each time period. There is no birth or death in the population. -Initially all people are susceptible. - No one dies from the disease and there is no treatment. a) Draw a compartmental model for this infectious disease.arrow_forward
Principles of Economics (12th Edition)EconomicsISBN:9780134078779Author:Karl E. Case, Ray C. Fair, Sharon E. OsterPublisher:PEARSON
Engineering Economy (17th Edition)EconomicsISBN:9780134870069Author:William G. Sullivan, Elin M. Wicks, C. Patrick KoellingPublisher:PEARSON
Principles of Economics (MindTap Course List)EconomicsISBN:9781305585126Author:N. Gregory MankiwPublisher:Cengage Learning
Managerial Economics: A Problem Solving ApproachEconomicsISBN:9781337106665Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike ShorPublisher:Cengage Learning
Managerial Economics & Business Strategy (Mcgraw-...EconomicsISBN:9781259290619Author:Michael Baye, Jeff PrincePublisher:McGraw-Hill Education