Question 1

Which of the following is TRUE regarding the labor force participation rate?
I. The labor force participation rate has risen since 1961.
II. Adding the labor force participation rate plus the unemployment rate equals the employment- to- population ratio.

Accepted Answer

Statement I is true as the labor force participation rate has increased since 1961. Statement II is false as adding the labor force participation rate and the unemployment rate does not equal the employment-to-population ratio, which is calculated as the number of employed individuals divided by the total adult population.

Question 2

-In the above table, the labor force participation rate is

Accepted Answer

The labor force participation rate is the percentage of the working-age population (15 years and older) who are either employed or unemployed but actively looking for work. In this table, the labor force participation rate is calculated by dividing the number of employed and unemployed persons by the total working-age population and multiplying by 100. From the table, we can see that the total working-age population is 100,000 and the number of employed and unemployed persons (i.e. the labor force) is 62,000. Therefore, the labor force participation rate is (62,000/100,000) x 100 = 62 percent.

Question 3

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

Accepted Answer

To calculate the labor force participation rate, you need both the number of employed and unemployed persons, as well as the working age population. The total population is not necessary for calculating the participation rate.

Question 4

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

Accepted Answer

An increasing labor force participation rate means that a greater percentage of the working-age population is participating in the labor force. This would result in a rising size of the labor force, but the number of unemployed people may or may not be affected depending on changes in the unemployment rate. Therefore, option B is the best choice.

Question 5

-In the above table, the unemployment rate is

Accepted Answer

The answer of  
-In the above table, the unemployment...

Question 6

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 the percentage of the population that is either employed or unemployed. In this case, the labor force is 40 million + 2 million = 42 million. The population is 40 million + 2 million + 8 million = 50 million. Therefore, the labor force participation rate is 42 million / 50 million * 100 = 84%.

Question 7

-In the above table, the working age population is

Accepted Answer

The answer of  
-In the above table, the working...

Question 8

-The labor force participation rate is the ratio of

Accepted Answer

The labor force participation rate is calculated by dividing the labor force by the working-age population and then multiplying by 100 to get a percentage.

Question 9

-The labor force participation rate is percentage of the who are in the labor force.

Accepted Answer

The labor force participation rate is the percentage of the working-age population that is either employed or actively seeking employment.

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

To calculate the labor force participation rate, we need to subtract those not in the labor force (70 million) and those institutionalized (70 million) from the total population (300 million):

300 million - 70 million (not in labor force) - 70 million (institutionalized) = 160 million in the labor force

The unemployment rate is calculated by dividing the number of unemployed by the labor force:

10 million unemployed / 160 million in the labor force = 0.0625

Finally, to calculate the labor force participation rate, we divide the number in the labor force by the total population:

160 million in the labor force / 230 million (those over the age of 16 and not institutionalized) = 0.6965 or 69.65%

Therefore, the correct answer is C.

Question 11

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

The answer of Suppose the population is 220 million people,...

Question 12

Since 1961, the U.S. labor force participation rate has and the unemployment rate has
)

Accepted Answer

The U.S. labor force participation rate has generally trended higher since 1961, while the unemployment rate has varied over the business cycle, increasing during recessions and decreasing during expansions.

Question 13

Since the early 1960s, in the United States the

Accepted Answer

Since the early 1960s, the labor force participation rate has increased while the unemployment rate has usually been between 5-10 percent. This is reflected in the overall trend of the U.S. economy towards greater workforce participation and growth, despite fluctuations in the unemployment rate.

Question 14

-In the above table, the size of the labor force is

Accepted Answer

The size of the labor force is equal to the number of employed individuals plus the number of unemployed individuals actively seeking work. In the given table, the number of employed individuals is 130 million and the number of unemployed individuals seeking work is 10 million. Therefore, the size of the labor force is 140 million (130 million + 10 million).

Question 15

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 calculated by dividing the labor force by the working age population and then multiplying by 100. Here, the labor force is 100 and the working age population is 150, so the correct calculation is 100/150.

Question 16

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 the percentage of the working-age population that is in the labor force. The labor force is the sum of the employed and unemployed. In this case, the labor force is 1000 + 100 = 1100. The working-age population is 1400. Therefore, the labor force participation rate is 1100 / 1400 * 100 = 78.6%.

Question 17

-The labor force participation rate is calculated as the

Accepted Answer

The labor force participation rate is calculated by dividing the labor force by the working age population and then multiplying by 100 to express it as a percentage.

Question 18

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

Accepted Answer

If those who take early retirement are not counted in the working-age population, the labor force participation rate would be higher because the total number of people in the labor force would be reduced, but the number of people counted as working-age would remain the same. This assumes that people who take early retirement would not have been actively seeking employment at the time of measurement, so they would not have been counted as unemployed.

Question 19

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 is the percentage of the working age population that is either employed or actively seeking employment. Therefore, the labor force participation rate equals the number of employed plus the number of unemployed divided by the working age population: (1500 + 100) / 2000 = 1600/2000 = 0.8 or 80%. Multiplying this by 100 gives 80, which is choice B.

Question 20

-The labor force participation rate shows the percentage of

Accepted Answer

The labor force participation rate measures the percentage of the non-institutionalized working-age population that is either employed or actively seeking employment.

Quiz 5: Monitoring Jobs and Inflation

Which of the following is TRUE regarding the labor force participation rate? I. The labor force participation rate has risen since 1961. II. Adding the labor force participation rate plus the unemployment rate equals the employment- to- population ratio.