Macroeconomics (MindTap Course List)
10th Edition
ISBN: 9781285859477
Author: William Boyes, Michael Melvin
Publisher: Cengage Learning
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Question
Chapter 7, Problem 1E
To determine
The definition if the term labor force and whether this definition by the US government is good or not.
Expert Solution & Answer
Answer to Problem 1E
Labor force is made up of both employed and
Officially, labor force = All US residents − residents under the age of 16 − institutionalized adults − adults not looking for jobs.
The definition of the US government regarding labor force is a good one.
Explanation of Solution
According to the Bureau of Labor Statistics, people with jobs are employed. People who don't have jobs, looking for jobs and available for jobs are unemployed. Labor force constitutes of both the groups. It is the sum of employed and unemployed people.
It is a good definition because it includes all the people who are actively there in the job market, may not have jobs but are available for employment opportunities. It excludes people who are not in the workable age or are part of the institution like army.
Economics Concept Introduction
Labor force - People available for hiring is referred to as the labor force.
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Chapter 7 Solutions
Macroeconomics (MindTap Course List)
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