Question 1

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 unemployment rate?

Accepted Answer

To calculate the unemployment rate, we use the formula: 
Unemployment Rate = (Number of Unemployed / Labor Force) x 100

Number of Unemployed = Labor Force - Number of people employed
Number of Unemployed = 150 million - 130 million
Number of Unemployed = 20 million

Unemployment Rate = (20 million / 150 million) x 100
Unemployment Rate = 0.1333 x 100
Unemployment Rate = 13.3%

Therefore, the best choice is D, 13.3 percent.

Question 2

To calculate the unemployment rate, which of the following are necessary pieces of information?
I. the number of unemployed persons
II. the population
III. the number of people in the labor force
IV. the working age population

Accepted Answer

The unemployment rate is calculated by dividing the number of unemployed persons by the number of people in the labor force. Therefore, I and III are necessary pieces of information. The population and working age population are not directly relevant to calculating the unemployment rate.

Question 3

Suppose initially that the working-age population is 220 million, the labor force is 150 million, and the official U-3 unemployment rate is 10 percent. 5 million new jobs are created and filled by 5 million people who had previously been discouraged workers. What is the new U-3 unemployment rate?

Accepted Answer

The initial number of unemployed is 15 million (10% of 150 million). With 5 million discouraged workers now employed, the labor force becomes 155 million, and the unemployed remain 10 million. The new U-3 rate is (10/155)*100 = 6.45%, which rounds to 9.7%.

Question 4

During a recession, people drop out of the labor force because they are unable to find a job. All else the same, this

Accepted Answer

When people drop out of the labor force, they are no longer counted as unemployed, which decreases the U-3 unemployment rate.

Question 5

Suppose the working-age population is 220 million, the labor force is 150 million, and the unemployment rate is 10 percent. The number of unemployed people is

Accepted Answer

To find the number of unemployed people, we need to first calculate the number of employed people:

Employed = Labor Force – Unemployed
Employed = 150 million – (10% x 150 million)
Employed = 150 million – 15 million
Employed = 135 million

Now that we know the number of employed people, we can calculate the number of unemployed people:

Unemployed = Working-Age Population – Employed
Unemployed = 220 million – 135 million
Unemployed = 85 million

Therefore, the number of unemployed people is 15 million.

Question 6

Suppose there are currently 100 people unemployed, 1500 people employed, 1600 people in the labor force, and 2000 people in the working age population. The unemployment rate equals 100 times

Accepted Answer

The unemployment rate is calculated by dividing the number of unemployed individuals by the total labor force and multiplying by 100.

Unemployment rate = (100 / 1600) x 100 = 6.25%

Question 7

Suppose the current unemployment rate is 5 percent, the labor force is 400 million people, the labor force participation rate is 80 percent and the working-age population is 500 million people. What number of people are unemployed?

Accepted Answer

The number of people in the labor force can be calculated by multiplying the labor force participation rate by the working-age population:

400 million = 80% x 500 million

The number of people employed can be found by subtracting the number of unemployed from the labor force:

400 million - (5% x 400 million) = 400 million - 20 million = 380 million

Therefore, the number of people unemployed is:

400 million - 380 million = 20 million

So, the correct answer is C) 20 million people.

Question 8

Which of the following decreases the official U-3 unemployment rate?

Accepted Answer

When workers leave the labor force, they are no longer counted as unemployed and therefore decrease the U-3 unemployment rate. Option A and C both increase the labor force participation rate and have the potential to increase the unemployment rate. Option D is incorrect because option B does decrease the unemployment rate.

Question 9

The population of Tiny Town is 100 people and the labor force is made up of 75 people. If 5 of these people are unemployed, the unemployment rate is

Accepted Answer

The unemployment rate is calculated by dividing the number of unemployed individuals by the labor force and multiplying by 100. Therefore, the unemployment rate in this case is (5/75) x 100 = 6.67%. Choice A is inaccurate because it uses the total population instead of the labor force in the denominator. Choice C incorrectly includes an additional 5 people in the denominator. There is enough information provided to calculate the unemployment rate, so choice D is incorrect.

Question 10

\[\begin{array} { | l | l | } 
\hline \text { Person A } & \begin{array} { l } 
\text { Now that the kids are in school for a full day, this } \
\text { person } \
\text { is looking for work and has interviewed for three jobs } \
\text { during the past two weeks. }
\end{array} \
\hline \text { Person B } & \begin{array} { l } 
\text { This person has been laid off from a job but expects to } \
\text { be } \
\text { called back as soon as the economy improves. }
\end{array} \
\hline \text { Person C } & \begin{array} { l } 
\text { This person has just graduated from college and will } \
\text { start a new job in three weeks. In the meantime this } \
\text { person will tour the great A merican b eaches. }
\end{array} \
\hline \text { Person D } & \begin{array} { l } 
\text { This person was laid off last year when new } \
\text { equipment } \
\text { was installed at the plant, reducing the number of } \
\text { workers needed.Shortly after beinglaid off, this } \
\text { person looked for a new job, w as unable to find one } \
\text { and then stopped looking, even though this person } \
\text { still wants a job and is available for work. }
\end{array} \
\hline
\end{array}\]
-The above table shows answers given by people interviewed in a government survey of households. Which individuals are considered to be a part of the labor force?

Accepted Answer

Person A is actively looking for work, Person B is laid off but expects to return to work, and Person C has a job lined up. All are considered part of the labor force.

Question 11

Suppose there are 100 million in the labor force, and 6 million unemployed people. During the next month, 200,000 people lose their jobs and 300,000 find jobs. The new total of employed persons is
__________and the new unemployment rate is__________ .

Accepted Answer

We can start by calculating the new number of unemployed individuals. 
New Unemployed = Old Unemployed + Newly Unemployed - Newly Employed 
New Unemployed = 6 million + 200,000 - 300,000 
New Unemployed = 5.9 million

Next, we can calculate the new number of employed individuals. 
New Employed = Old Employed + Newly Employed - Newly Unemployed 
New Employed = 100 million + 300,000 - 200,000 
New Employed = 100.1 million

Finally, we can calculate the new unemployment rate. 
Unemployment Rate = (New Unemployed / Labor Force) x 100% 
Unemployment Rate = (5.9 million / 100 million) x 100% 
Unemployment Rate = 5.9%

Therefore, the answer is choice D: 94.1 million; 5.9 percent.

Question 12

In an economy, 23 million people are employed and 2 million are unemployed, but 5 million part-time workers would prefer full-time work. What is the unemployment rate?

Accepted Answer

The unemployment rate is calculated by dividing the number of unemployed individuals by the total labor force (employed plus unemployed). 
Labor force = employed + unemployed = 23 million + 2 million = 25 million 
Unemployment rate = (unemployed / labor force) x 100 
Unemployed = 2 million + 5 million (part-time workers who want full-time work) = 7 million 
Unemployment rate = (7 million / 25 million) x 100 = 28 percent 
However, the question only asks for the unemployment rate, not the underemployment rate (which includes the part-time workers who want full-time work). 
So, the correct answer is B) 8 percent: 
Unemployment rate = (2 million / 25 million) x 100 = 8 percent.

Question 13

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

Accepted Answer

The unemployment rate is calculated by dividing the number of unemployed people by the working-age population and multiplying by 100. In this case, the unemployment rate is 100 / 1400 * 100 = 9.1 percent.

Question 14

Based on the following data for the country of Tiny Town, the unemployment rate equals: Population = 100
Labor force = 80
Number of employed persons = 70 Number of discouraged workers = 5

Accepted Answer

The unemployment rate is calculated as the number of unemployed persons divided by the labor force, multiplied by 100. In this case, the number of unemployed persons is 10 (80 in the labor force minus 70 employed), and the labor force is 80. Thus, the unemployment rate is (10/80) × 100.

Question 15

In the United States in 1996, the population was 265.5 million and the working age population was
200)6 million. There were 133.9 million people in the labor force and 126.7 of them were employed. The unemployment rate equaled__________ .

Accepted Answer

The unemployment rate is calculated as the number of unemployed individuals divided by the labor force. So, the number of unemployed individuals is 133.9 million - 126.7 million = 7.2 million. Therefore, the unemployment rate is (7.2 million / 133.9 million) x 100 = 5.4 percent.

Question 16

Assume that the total labor force is 100 individuals with 10 unemployed. The unemployment rate is____________ . Now assume that 10 people drop out of the labor force and that 10 remain unemployed. The new unemployment rate is __________.

Accepted Answer

The initial unemployment rate is (10/100) x 100 = 10%. 
After 10 people drop out of the labor force, the new labor force size is 100-10 = 90 individuals. The new unemployment rate is (10/90) x 100 = 11.11%, which is 11% when rounded to the nearest whole number. Therefore, the new unemployment rate is 11%, which is option C.

Question 17

Which labor market statistic tends rise during recessions and fall during expansions?

Accepted Answer

The unemployment rate tends to rise during recessions as employers are less likely to hire new workers and may even lay off existing employees. Conversely, the unemployment rate tends to fall during economic expansions as businesses increase their hiring and opportunities for employment become more abundant.

Question 18

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 unemployment rate is

Accepted Answer

The unemployment rate is calculated as the number of unemployed people divided by the labor force. In this case, the labor force is 150 million, and the number of unemployed people is 10 million. Therefore, the unemployment rate is 10 million / 150 million = 0.0667, or 6.67%.

Question 19

The unemployment rate measures the percentage of

Accepted Answer

The unemployment rate measures the percentage of people in the labor force who can't find a job. The labor force includes individuals who are legally able and willing to work, which excludes those who are retired or not seeking employment. Therefore, options A, B, and D are not correct because they either include individuals who are not part of the labor force or make assumptions about individuals' job preferences.

Question 20

Suppose the population of Tiny Town is 100 people and the working age population is 70. If 10 of these people are unemployed, the unemployment rate in Tiny Town is

Accepted Answer

The answer of Suppose the population of Tiny Town is...

Quiz 5: Monitoring Jobs and Inflation

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 unemployment rate?

To calculate the unemployment rate, which of the following are necessary pieces of information? I. the number of unemployed persons II. the population III. the number of people in the labor force IV. the working age population

Suppose initially that the working-age population is 220 million, the labor force is 150 million, and the official U-3 unemployment rate is 10 percent. 5 million new jobs are created and filled by 5 million people who had previously been discouraged workers. What is the new U-3 unemployment rate?

During a recession, people drop out of the labor force because they are unable to find a job. All else the same, this

Suppose the working-age population is 220 million, the labor force is 150 million, and the unemployment rate is 10 percent. The number of unemployed people is

Suppose there are currently 100 people unemployed, 1500 people employed, 1600 people in the labor force, and 2000 people in the working age population. The unemployment rate equals 100 times

Suppose the current unemployment rate is 5 percent, the labor force is 400 million people, the labor force participation rate is 80 percent and the working-age population is 500 million people. What number of people are unemployed?

Which of the following decreases the official U-3 unemployment rate?

The population of Tiny Town is 100 people and the labor force is made up of 75 people. If 5 of these people are unemployed, the unemployment rate is

Suppose there are 100 million in the labor force, and 6 million unemployed people. During the next month, 200,000 people lose their jobs and 300,000 find jobs. The new total of employed persons is and the new unemployment rate is .

In an economy, 23 million people are employed and 2 million are unemployed, but 5 million part-time workers would prefer full-time work. What is the unemployment rate?

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

Based on the following data for the country of Tiny Town, the unemployment rate equals: Population = 100 Labor force = 80 Number of employed persons = 70 Number of discouraged workers = 5

In the United States in 1996, the population was 265.5 million and the working age population was 200) 6 million. There were 133.9 million people in the labor force and 126.7 of them were employed. The unemployment rate equaled__________ .

Assume that the total labor force is 100 individuals with 10 unemployed. The unemployment rate is__ . Now assume that 10 people drop out of the labor force and that 10 remain unemployed. The new unemployment rate is .

Which labor market statistic tends rise during recessions and fall during expansions?

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 unemployment rate is

The unemployment rate measures the percentage of

Suppose the population of Tiny Town is 100 people and the working age population is 70. If 10 of these people are unemployed, the unemployment rate in Tiny Town is

Quiz 5: Monitoring Jobs and Inflation

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 unemployment rate?

To calculate the unemployment rate, which of the following are necessary pieces of information? I. the number of unemployed persons II. the population III. the number of people in the labor force IV. the working age population

Suppose initially that the working-age population is 220 million, the labor force is 150 million, and the official U-3 unemployment rate is 10 percent. 5 million new jobs are created and filled by 5 million people who had previously been discouraged workers. What is the new U-3 unemployment rate?

During a recession, people drop out of the labor force because they are unable to find a job. All else the same, this

Suppose the working-age population is 220 million, the labor force is 150 million, and the unemployment rate is 10 percent. The number of unemployed people is

Suppose there are currently 100 people unemployed, 1500 people employed, 1600 people in the labor force, and 2000 people in the working age population. The unemployment rate equals 100 times

Suppose the current unemployment rate is 5 percent, the labor force is 400 million people, the labor force participation rate is 80 percent and the working-age population is 500 million people. What number of people are unemployed?

Which of the following decreases the official U-3 unemployment rate?

The population of Tiny Town is 100 people and the labor force is made up of 75 people. If 5 of these people are unemployed, the unemployment rate is

Suppose there are 100 million in the labor force, and 6 million unemployed people. During the next month, 200,000 people lose their jobs and 300,000 find jobs. The new total of employed persons is __________and the new unemployment rate is__________ .

In an economy, 23 million people are employed and 2 million are unemployed, but 5 million part-time workers would prefer full-time work. What is the unemployment rate?

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

Based on the following data for the country of Tiny Town, the unemployment rate equals: Population = 100 Labor force = 80 Number of employed persons = 70 Number of discouraged workers = 5

In the United States in 1996, the population was 265.5 million and the working age population was 200) 6 million. There were 133.9 million people in the labor force and 126.7 of them were employed. The unemployment rate equaled__________ .

Assume that the total labor force is 100 individuals with 10 unemployed. The unemployment rate is____________ . Now assume that 10 people drop out of the labor force and that 10 remain unemployed. The new unemployment rate is __________.

Which labor market statistic tends rise during recessions and fall during expansions?

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 unemployment rate is

The unemployment rate measures the percentage of

Suppose the population of Tiny Town is 100 people and the working age population is 70. If 10 of these people are unemployed, the unemployment rate in Tiny Town is

Suppose there are 100 million in the labor force, and 6 million unemployed people. During the next month, 200,000 people lose their jobs and 300,000 find jobs. The new total of employed persons is and the new unemployment rate is .

Assume that the total labor force is 100 individuals with 10 unemployed. The unemployment rate is__ . Now assume that 10 people drop out of the labor force and that 10 remain unemployed. The new unemployment rate is .