Find the size of the civilian labor force from the following data: frictional unemployment = 150, structural unemployment = 200, cyclical unemployment = 225, discouraged workers = 25, underemployed workers = 75, fully employed workers = 850, total population = 2,000.
A) 1,425
B) 1,450
C) 1,500
D) 2,000

Question

Quizplus · Accepted Answer

To find the size of the civilian labor force, we need to subtract discouraged workers, underemployed workers, and fully employed workers from the total population. 
Civilian labor force = Total population - (Discouraged workers + Underemployed workers + Fully employed workers)
Civilian labor force = 2,000 - (25 + 75 + 850) = 2,000 - 950 = 1,050
However, this calculation only takes into account frictional, structural, and cyclical unemployment. We also need to add those who are unemployed and actively seeking work. 
Civilian labor force = 1,050 + (150 + 200 + 225) = 1,625
Therefore, the best choice is C (1,500).

Find the Size of the Civilian Labor Force from the Following