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 either employed or actively seeking employment, which means it includes both the number of employed individuals as well as the number of unemployed individuals who are actively seeking work. Therefore, D, "the number of unemployed plus the number of employed" is the best choice.

Question 2

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 the employed and the unemployed.

Question 3

How is the unemployment rate computed?

Accepted Answer

The unemployment rate is calculated by dividing the number of individuals who are unemployed and actively seeking employment by the total number of individuals in the labor force (employed plus unemployed), and then multiplying the result by 100. This is expressed as a percentage. Therefore, choice A is the correct answer. The other options (B, C, and D) do not use the correct formula to calculate the unemployment rate.

Question 4

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. What can you conclude?

Accepted Answer

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

Question 5

How is the labour-force participation rate computed?

Accepted Answer

The labour-force participation rate is computed as the number of adults (age 16 and older) in the labour force (either employed or actively seeking employment) divided by the adult population (age 16 and older) multiplied by 100. This gives a percentage that represents the proportion of the population that is actively engaged in the labour market.

Question 6

Emma`s contract position just finished and she is looking for another job, but has not yet found one. Which pair of categories does Anna now belong to?

Accepted Answer

Emma is actively seeking work, which places her in the labour force. However, she is also currently unemployed, which puts her in the unemployed category. Therefore, she belongs to the category of "unemployed and in the labour force."

Question 7

Matt loses his job in April and decides play golf 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 labour force because he is not actively seeking or accepting employment. Therefore, he is not considered unemployed and is not included in the calculation of the unemployment rate. As a result, the unemployment rate decreases.

Question 8

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

Accepted Answer

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

Question 9

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

Accepted Answer

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

Question 10

How is the labour-force participation rate defined?

Accepted Answer

The labour-force participation rate is the percentage of the adult population that is in the labour force, defined as the sum of employed and unemployed persons. Therefore, it is calculated by dividing the labour force (employed plus unemployed) by the adult population and multiplying by 100.

Question 11

In 2014 in Japan, based on concepts similar to those used to compute Canadian employment statistics, the unemployment rate was about 3.4 percent, the labour force participation rate was about 59 percent, and the adult population was about 127 million. How many people were employed?

Accepted Answer

The answer of In 2014 in Japan, based on concepts...

Question 12

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

Accepted Answer

An increase in both the number of people employed and the unemployment rate can be explained by an increase in the labour force. This means that more people entered the job market, including those who found jobs and those who did not.

Question 13

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

Accepted Answer

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

Question 14

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 actively seeking employment is not considered part of the labour force, therefore they are not classified as employed or unemployed. They are simply not included in the labour force participation rate or unemployment rate calculations.

Question 15

In 2014 in the United Kingdom, the adult population was about 65 million, the labour force participation rate was 62percent, and the unemployment rate was 5.7 percent. What was the number of people unemployed?

Accepted Answer

The answer of In 2014 in the United Kingdom, the...

Question 16

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

Accepted Answer

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

Question 17

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

Accepted Answer

Latoya is not currently employed and is not actively seeking employment. Therefore, she is not considered as part of the labor force, making her not in the labor force.

Question 18

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. The labour force is defined as those who are employed or actively seeking employment. This definition is widely used by other countries' statistical agencies as well.

Question 19

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

Accepted Answer

Rick is still part of the labor force and actively seeking new employment, so he is considered unemployed. Therefore, his job loss would increase the number of unemployed people, and thus increase the unemployment rate.

Question 20

A foreign governmental statistics agency recently reported that there were 47.6 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 35.9 million were employed. What was the unemployment rate in this group?

Accepted Answer

To calculate the unemployment rate, divide the number of unemployed individuals by the total labour force. In this case, the number of unemployed individuals would be 38.0 million - 35.9 million = 2.1 million. The labour force is 38.0 million.

Unemployment rate = (number of unemployed individuals / total labour force) x 100%
Unemployment rate = (2.1 million / 38.0 million) x 100%
Unemployment rate = 5.5%

Therefore, the answer is B, about 5.5 percent.

Quiz 9: Unemployment and Its Natural Rate

Which of the following best defines the labour force?

What does the labour-force participation rate measure?

How is the unemployment rate computed?

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. What can you conclude?

How is the labour-force participation rate computed?

Emma`s contract position just finished and she is looking for another job, but has not yet found one. Which pair of categories does Anna now belong to?

Matt loses his job in April and decides play golf for a few months. Assuming that other things remain the same, what happens to the unemployment rate?

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

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

How is the labour-force participation rate defined?

In 2014 in Japan, based on concepts similar to those used to compute Canadian employment statistics, the unemployment rate was about 3.4 percent, the labour force participation rate was about 59 percent, and the adult population was about 127 million. How many people were employed?

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

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

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

In 2014 in the United Kingdom, the adult population was about 65 million, the labour force participation rate was 62percent, and the unemployment rate was 5.7 percent. What was the number of people unemployed?

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

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

How does Statistics Canada define the unemployment rate?

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

A foreign governmental statistics agency recently reported that there were 47.6 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 35.9 million were employed. What was the unemployment rate in this group?