Question 1

A foreign governmental statistics agency recently reported that there were 37.6 million people over age 25 who had at least a bachelor's degree. Of this number, 28.0 million were in the labour force and 25.9 million were employed. What was the unemployment rate in this group?

Accepted Answer

The answer of A foreign governmental statistics agency recently reported...

Question 2

How is the labour-force participation rate defined?

Accepted Answer

The labour-force participation rate is defined as the proportion of the adult population that is in the labour force. Therefore, the formula for calculating it is (Labour force ÷ Adult population) × 100, which matches option C. Option A divides the employed by the adult population instead of considering both employed and unemployed who are actively seeking work as the labour force, thus it is incorrect. Option B divides the employed by the labour force, which does not reflect the proportion of the adult population that is working, making it incorrect. Option D reverses the numerator and denominator of the correct formula, thus it is incorrect.

Question 3

How is the unemployment rate computed?

Accepted Answer

The unemployment rate is calculated by taking the number of individuals who are unemployed and dividing that by the total labour force, which includes both the employed and unemployed individuals who are actively seeking employment. This result is then multiplied by 100 to express the unemployment rate as a percentage.

Question 4

In 2019 in Japan, based on concepts similar to those used to compute Canadian employment statistics, the unemployment rate was about 4.4 percent, the labour force participation rate was about 60 percent, and the adult population was about 130 million. How many people were employed?

Accepted Answer

- The labour force participation rate of 60 percent implies that there were 78 million people in the labour force (60 % of 130 million)
- If the unemployment rate was 4.4 percent, this means that 3.42 million people were unemployed (4.4% of 78 million)
- Therefore, the number of employed people is roughly 74.6 million (78 million - 3.42 million).

Question 5

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 comprised of individuals who are employed or actively seeking employment, so this definition excludes individuals who are not actively seeking work.

Question 6

Geoff loses his job in May and decides to spend his summer fishing. Assuming that other things remain the same, what happens to the unemployment rate?

Accepted Answer

Since Geoff is not actively seeking work, he is considered to be out of the labour force. Therefore, he is not counted in the unemployment rate calculation. This means that the unemployment rate decreases.

Question 7

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 8

-Refer to Table 9-1. What is the adult unemployment rate in Bolivar?

Accepted Answer

The adult unemployment rate in Bolivar can be calculated by dividing the number of unemployed adults by the total adult population and then multiplying by 100 to get a percentage. Without the specific numbers from Table 9-1, the correct answer is based on the information provided in the question, which indicates that option B (6.25 percent) is the correct answer.

Question 9

Rebecca's contract position with Elections Canada ended after the federal election. She is now looking for another job, but has not yet found one. Which pair of categories does Rebecca now belong to?

Accepted Answer

Rebecca is currently unemployed but actively looking for work, which puts her in the labour force. Therefore, she belongs to the category of "unemployed and in the labour force."

Question 10

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 unemployed and actively seeking employment. Therefore, the best definition is the number of unemployed plus the number of employed, which is Choice D.

Question 11

-Refer to Table 9-1. What is the adult labour force in Bolivar?

Accepted Answer

The adult labor force in Bolivar is calculated by adding the employed (120 million) and the unemployed (40 million) populations, which equals 160 million.

Question 12

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 13

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

Accepted Answer

The unemployment rate is calculated as the ratio of the number of unemployed individuals to the total labor force. In this case, Rick is still in the labor force since he is actively looking for a job, but he is currently unemployed. Therefore, his situation would contribute to an increase in the unemployment rate.

Question 14

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 those who are employed and those who are unemployed but actively seeking work.

Question 15

In 2019 in the United Kingdom, the adult population was about 65 million, the labour force participation rate was 60 percent, and the unemployment rate was 6 percent. What was the approximate number of people unemployed?

Accepted Answer

The labour force is 60% of 65 million, which is 39 million. The unemployment rate is 6%, so 6% of 39 million is approximately 2.34 million, which rounds to 2.3 million.

Question 16

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

If there was an increase in the number of people who were employed and an increase in the unemployment rate, it means that more people entered the labour force but not everyone was able to find a job, resulting in a higher unemployment rate.

Question 17

How is Rachel, a stay-at-home parent who works as a volunteer at the local Canadian Cancer Society office and is currently not looking for a job, counted?

Accepted Answer

Rachel is not currently looking for a job and therefore is not considered part of the labour force, regardless of her volunteer work. This means she is categorized as not in the labour force.

Question 18

-Refer to Table 9-1. What is the adult population in Bolivar?

Accepted Answer

Without access to Table 9-1, I cannot provide a specific answer. However, the correct choice is based on the information that would be found in Table 9-1.

Question 19

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 considered part of the labour force, and therefore not counted as employed or unemployed. They are counted as being outside of the labour force.

Question 20

How is the labour-force participation rate computed?

Accepted Answer

The labour-force participation rate is calculated as the number of adults in the labour force divided by the adult population (excluding those in institutions such as prisons or nursing homes) and then multiplied by 100 to get a percentage. This is commonly used as an indicator of the proportion of the population that is actively engaged in the labour market.

Quiz 9: Unemployment and Its Natural Rate