Question 1

From 1980 to 2000 the trend in the labor force participation rate was__________ and from 2000 to 2010 the trend was __________.

Accepted Answer

From 1980 to 2000, the labor force participation rate generally increased as more women entered the workforce. From 2000 to 2010, the trend reversed, with the participation rate declining due to factors like the aging population and economic downturns.

Question 2

In an economy, 40 million people are employed, 2 million are unemployed, and 8 million are not in the labor force. What is the labor force participation rate?

Accepted Answer

The labor force participation rate is calculated as the labor force divided by the total adult population, multiplied by 100. The labor force is the sum of employed and unemployed people, which is 42 million (40 million employed + 2 million unemployed). The total adult population is the labor force plus those not in the labor force, which is 50 million (42 million + 8 million). Thus, the labor force participation rate is (42/50) * 100 = 84 percent.

Question 3

Which of the following pieces of information do you need to calculate the labor force participation rate?
I. the number of employed persons
II. the number of unemployed persons
III. the population
IV. the working age population

Accepted Answer

The labor force participation rate is the percentage of the working-age population that is either employed or unemployed but looking for work. Therefore, we need to know the number of employed persons (I), the number of unemployed persons (II), and the working age population (IV) to calculate the labor force participation rate. The population (III) alone does not give us any information about the labor force participation rate.

Question 4

$\begin{array}{|l|l|}
\hline \text { Category } & \begin{array}{l}
\text { Number } \
\text { (millions) }
\end{array} \\hline \text { Discouraged workers } & 15 \
\hline \text { Unemployed workers } & 40 \
\hline \text { Employed workers } & 100 \
\hline \text { Population (16 years and over) } & 225 \
\hline
\end{array}$
-In the above table, the size of the labor force is

Accepted Answer

The labor force is the sum of employed and unemployed workers. In this case, the labor force is 100 million + 40 million = 140 million.

Question 5

$\begin{array}{|l|l|}
\hline \text { Category } & \begin{array}{l}
\text { Number } \
\text { (millions) }
\end{array} \\hline \text { Discouraged workers } & 15 \
\hline \text { Unemployed workers } & 40 \
\hline \text { Employed workers } & 100 \
\hline \text { Population (16 years and over) } & 225 \
\hline
\end{array}$
-In the above table, the labor force participation rate is

Accepted Answer

The labor force includes both employed and unemployed workers. The labor force participation rate is calculated as (Employed + Unemployed) / Population (16 years and over) = (100 + 40) / 225 = 62 percent.

Question 6

$$\begin{array} { | l | l | } 
\hline { \text { Component } } & \begin{array} { l } 
\text { Number of people } \
\text { (millions) }
\end{array} \
\hline \text { Under 16 } & 50 \
\hline \text { Working full-time } & 90 \
\hline \text { Working part-time } & 30 \
\hline \text { Retired } & 40 \
\hline \text { Unemployed } & 5 \
\hline
\end{array}$$
-Using the data in the above table, the labor force is __________million.

Accepted Answer

The labor force includes those working full-time, part-time, and unemployed. Thus, 90 + 30 + 5 = 125 million.

Question 7

$\begin{array}{|l|l|}
\hline \text { Category } & \begin{array}{l}
\text { Number } \
\text { (millions) }
\end{array} \\hline \text { Discouraged workers } & 15 \
\hline \text { Unemployed workers } & 40 \
\hline \text { Employed workers } & 100 \
\hline \text { Population (16 years and over) } & 225 \
\hline
\end{array}$
-In the above table, the working age population is

Accepted Answer

The working age population is the population that is 16 years and over. In the table, the population 16 years and over is 225 million.

Question 8

Suppose the population is 220 million people, the labor force is 150 million people, the number of people employed is 130 million and the working-age population is 175 million people. What is the labor force participation rate?

Accepted Answer

Labor force participation rate = (Labor force / Working-age population) x 100%
= (150 million / 175 million) x 100%
= 85.7%
Therefore, the answer is C) 85.7 percent.

Question 9

If the number of people unemployed is 100, the number of people employed is 1000, and the working-age population is 1400, then the labor force participation rate is

Accepted Answer

The labor force participation rate is calculated as the labor force divided by the working-age population, multiplied by 100. The labor force is the sum of employed and unemployed people, which is 1100 (1000 employed + 100 unemployed). The working-age population is 1400. Thus, the labor force participation rate is (1100/1400) * 100 = 78.6 percent.

Question 10

If the population is 300 million, with 70 million under the age of 16 and institutionalized, another 70 million not in the labor force, 10 million unemployed and 150 million employed, the labor force participation rate is

Accepted Answer

Labor force = employed + unemployed
= 150 million + 10 million
= 160 million

Population = institutionalized + <16 + not in labor force + labor force
= 70 million + 70 million + 10 million + 160 million
= 310 million

Labor force participation rate = (labor force / population) x 100%
= (160 million / 310 million) x 100%
= 51.6%

Therefore, the best choice is D, which is 69.6 percent.

Question 11

$\begin{array}{|l|l|}
\hline \text { Category } & \begin{array}{l}
\text { Number } \
\text { (millions) }
\end{array} \\hline \text { Discouraged workers } & 15 \
\hline \text { Unemployed workers } & 40 \
\hline \text { Employed workers } & 100 \
\hline \text { Population (16 years and over) } & 225 \
\hline
\end{array}$
-In the above table, the number of marginally attached workers is

Accepted Answer

Marginally attached workers are those who are discouraged workers or unemployed workers. The number of discouraged workers is 15 million and the number of unemployed workers is 40 million. Therefore, the number of marginally attached workers is 15 million + 40 million = 55 million.

Question 12

$\begin{array}{|l|l|}
\hline \text { Category } & \begin{array}{l}
\text { Number } \
\text { (millions) }
\end{array} \\hline \text { Discouraged workers } & 15 \
\hline \text { Unemployed workers } & 40 \
\hline \text { Employed workers } & 100 \
\hline \text { Population (16 years and over) } & 225 \
\hline
\end{array}$
-In the above table, the employment-to-population ratio is

Accepted Answer

The answer of \(\begin{array}{|l|l|}
\hline \text { Category } & \begin{array}{l}
\text...

Question 13

If the people who take early retirement are not counted in the working -age population, then

Accepted Answer

If early retirees are not counted in the working-age population, the labor force participation rate would be higher because the denominator (working-age population) would be smaller, assuming the labor force remains constant.

Question 14

Suppose the labor force in Tiny Town is 100 people. If the __________in Tiny Town is 150 people, the labor force participation rate equals __________multiplied by 100.

Accepted Answer

The labor force participation rate is the percentage of the working-age population that is in the labor force. In this case, the working-age population is 150 people and the labor force is 100 people, so the labor force participation rate is 100/150 * 100 = 66.67%.

Question 15

$$\begin{array} { | l | l | } 
\hline { \text { Component } } & \begin{array} { l } 
\text { Number of people } \
\text { (millions) }
\end{array} \
\hline \text { Under 16 } & 50 \
\hline \text { Working full-time } & 90 \
\hline \text { Working part-time } & 30 \
\hline \text { Retired } & 40 \
\hline \text { Unemployed } & 5 \
\hline
\end{array}$$
-Using the data in the above table, the labor force participation rate is

Accepted Answer

The labor force participation rate is the percentage of the population that is either employed or unemployed. In this case, the labor force is 90 + 30 + 5 = 125 million people, and the population is 50 + 90 + 30 + 40 + 5 = 215 million people. Therefore, the labor force participation rate is 125 / 215 * 100 = 75.7 percent.

Question 16

$\begin{array}{|l|l|}
\hline \text { Category } & \begin{array}{l}
\text { Number } \
\text { (millions) }
\end{array} \\hline \text { Discouraged workers } & 15 \
\hline \text { Unemployed workers } & 40 \
\hline \text { Employed workers } & 100 \
\hline \text { Population (16 years and over) } & 225 \
\hline
\end{array}$
-In the above table, the unemployment rate is

Accepted Answer

The answer of \(\begin{array}{|l|l|}
\hline \text { Category } & \begin{array}{l}
\text...

Question 17

$$\begin{array} { | l | l | } 
\hline { \text { Component } } & \begin{array} { l } 
\text { Number of people } \
\text { (millions) }
\end{array} \
\hline \text { Under 16 } & 50 \
\hline \text { Working full-time } & 90 \
\hline \text { Working part-time } & 30 \
\hline \text { Retired } & 40 \
\hline \text { Unemployed } & 5 \
\hline
\end{array}$$
-Using the data in the above table, the unemployment rate is

Accepted Answer

The answer of \[\begin{array} { | l | l |...

Question 18

Suppose there are currently 100 people unemployed, 1500 people employed, and 2000 people in the working age population. The labor force participation rate equals 100 times

Accepted Answer

The labor force participation rate equals the number of people in the labor force (employed + unemployed) divided by the working age population. Therefore, the labor force participation rate is (1500 + 100) / 2000 = 1600 / 2000 = 0.8 or 80%. Therefore, the correct choice is B (1600/2000).

Question 19

If the labor force participation rate is rising and the working-age population is not changing, then the

Accepted Answer

The labor force participation rate rising with a constant working-age population indicates more people are entering the labor force, thus increasing its size.

Question 20

$$\begin{array} { | c | l | l | l | } 
\hline \begin{array} { l } 
\text { Total } \
\text { population } \
\text { (millions) }
\end{array} & \begin{array} { c } 
\text { Currently } \
\text { employed } \
\text { (millions) }
\end{array} & \begin{array} { c } 
\text { Not working } \
\text { and looking for } \
\text { work (millions) }
\end{array} & \begin{array} { c } 
\text { Want to work but } \
\text { no longer looking } \
\text { for work } \
\text { (millions) }
\end{array} \
\hline 80 & 40 & 2 & 4 \
\hline
\end{array}$$
-The labor force participation rate shows the percentage of

Accepted Answer

The labor force participation rate is the percentage of non-institutionalized working-age people who are actually working or seeking employment.

Quiz 5: Monitoring Jobs and Inflation

From 1980 to 2000 the trend in the labor force participation rate was and from 2000 to 2010 the trend was .