Question 1

Which of the following best defines the labour force?

Accepted Answer

The labour force is defined as the number of people who are employed plus the number of people who are unemployed but actively seeking work. Therefore, option D is the correct definition.

Question 2

How is the labour-force participation rate defined?

Accepted Answer

The labour-force participation rate is defined as the percentage of the adult population that is in the labour force. Therefore, the formula is (Labour force ÷ Adult population) × 100. Option A is incorrect because it calculates the employment rate, not the labour-force participation rate. Option B is incorrect because the labour force is in the numerator and denominator which would cancel out, making the result 100%. Option D is incorrect because it calculates the opposite of the labour-force participation rate.

Question 3

What does the labour-force participation rate measure?

Accepted Answer

The labour-force participation rate measures the percentage of the total adult population that is in the labour force, which includes both employed and unemployed individuals who are actively seeking work. Option B refers to the employment rate, Option C refers to the employment-to-population ratio, and Option D refers to the labour utilization rate.

Question 4

Table 9-1
This table shows the 2013 data for males and females aged 15 and over in the country of Dan.
 
-Refer to the Table 9-1.What is the adult labour force in Dan?

Accepted Answer

To find the adult labor force, we need to add the number of employed and unemployed individuals, which is given under the columns "Employed" and "Unemployed." Adding these two numbers for both males and females gives us a total adult labor force of 160 million. A is incorrect because it only includes the number of employed individuals. B and D are incorrect because they are significantly higher than the actual number of the labor force.

Question 5

In 2000 in Japan,based on concepts similar to those used to compute Canadian employment statistics,the unemployment rate was about 4.8 percent,the labour force participation rate was about 62 percent,and the adult population was about 108 million.How many people were employed?

Accepted Answer

To calculate the number of people employed, we need to first find the size of the labour force by multiplying the adult population by the labour force participation rate:

Labour force = Adult population x Labour force participation rate
Labour force = 108 million x 0.62
Labour force = 67.08 million

Next, we can calculate the number of unemployed as a percentage of the labour force:

Unemployed = Labour force x (Unemployment rate/100)
Unemployed = 67.08 million x (4.8/100)
Unemployed = 3.22 million

Finally, we can calculate the number of employed as the difference between the labour force and the unemployed:

Employed = Labour force - Unemployed
Employed = 67.08 million - 3.22 million
Employed = 63.86 million, which is approximately 64 million

Therefore, the answer is B) about 64 million.

Question 6

A foreign governmental statistics agency recently reported that there were 48.6 million people over age 25 who had at least a bachelor's degree.Of this number,38.0 million were in the labour force and 36.9 million were employed.What was the unemployment rate in this group?

Accepted Answer

The unemployment rate is calculated as the number of unemployed divided by the labor force. Here, 38.0 million are in the labor force and 36.9 million are employed, so 1.1 million are unemployed. The unemployment rate is (1.1 million / 38.0 million) * 100 = 2.9 percent.

Question 7

Last year,a government reported an increase in the number of people who were employed and an increase in the unemployment rate.Which of the following would best explain the report?

Accepted Answer

An increase in employment along with an increase in unemployment rate suggests that there was an increase in the labor force, meaning more people entered the workforce but not all of them were able to find jobs.

Question 8

Table 9-1
This table shows the 2013 data for males and females aged 15 and over in the country of Dan.
 
-Refer to the Table 9-1.What is the adult unemployment rate in Dan?

Accepted Answer

The adult unemployment rate is calculated by dividing the number of unemployed adults by the total adult labor force and then multiplying by 100. The correct calculation based on the given options results in 6.25 percent.

Question 9

How does Statistics Canada define the unemployment rate?

Accepted Answer

Statistics Canada defines the unemployment rate as the percentage of the labour force that is unemployed. This measure is commonly used to assess the health of the labour market and the economy.

Question 10

Rick loses his job and immediately begins looking for another.Other things equal,what happens to the unemployment rate?

Accepted Answer

Rick is still in the labour force because he is actively looking for another job. Therefore, he is still considered unemployed and his job loss adds to the number of unemployed people in the labour force, causing the unemployment rate to increase.

Question 11

In 2000 in the United Kingdom,the adult population was about 46.5 million,the labour force participation rate was 63.5 percent,and the unemployment rate was 5.8 percent.What was the number of people unemployed?

Accepted Answer

The answer of In 2000 in the United Kingdom,the adult...

Question 12

Tara has just finished school,but she is going to roam around the country awhile before she starts looking for work.Which of the following best characterizes the changes that occur in labour statistics?

Accepted Answer

The answer of Tara has just finished school,but she is...

Question 13

How is a college student who is not working or looking for a job counted?

Accepted Answer

A college student who is not working or looking for a job is not part of the labour force and, therefore, is neither employed nor unemployed. They may be categorized as "not in the labour force."

Question 14

Table 9-1
This table shows the 2013 data for males and females aged 15 and over in the country of Dan.
 
-Refer to the Table 9-1.What is the adult population in Dan?

Accepted Answer

The answer of Table 9-1
This table shows the 2013 data...

Question 15

Anna has just finished school and started looking for a job,but has not yet found one.Which of the following pairs of categories does Anna now belong to?

Accepted Answer

Anna is currently without a job, which makes her unemployed. However, she is actively seeking employment, which means she is in the labour force. Therefore, the correct option is B - unemployed and in the labour force.

Question 16

How is the unemployment rate computed?

Accepted Answer

The unemployment rate is calculated as the number of unemployed individuals divided by the labour force (which consists of both employed and unemployed individuals) multiplied by 100 to express it as a percentage. Therefore, option A is the correct choice as it presents the accurate formula for computing the unemployment rate.

Question 17

Matt loses his job and decides to sit around at home for a few months.Assuming that other things remain the same,what happens to the unemployment rate?

Accepted Answer

Matt is no longer in the labor force, so he is not counted as unemployed. This means that the unemployment rate will decrease.

Question 18

Prime Minister Bigego is running for re-election against Finance Minister Pander.Bigego proclaims that more people are working now than when he took office.Pander says that the unemployment rate is higher now than when Bigego took office.Which of the following can you conclude?

Accepted Answer

The answer of Prime Minister Bigego is running for re-election...

Question 19

How is Latoya,a homemaker who works as a volunteer at the local Red Cross and is currently not looking for a job,counted?

Accepted Answer

Latoya is not currently looking for a job and therefore is not included in the labour force. She is also not employed, as homemaker and volunteer work do not count as paid employment. Therefore, the best choice is D, "not in the labour force."

Question 20

How is the labour-force participation rate computed?

Accepted Answer

The labour-force participation rate is computed as the number of adults in the labour force divided by the adult population times 100. This measures the proportion of the adult population that is either employed or actively seeking employment.

Quiz 9: Unemployment and Its Natural Rate