$$\begin{array}{l}
\text { Labor Market Flows }\
\begin{array} { l c }
\quad \text { During 2009 } & \text { Number of People } \
\hline \text { Hires and recalls } & 1,000 \
\text { Job losers } & 500 \
\text { Job leavers } & 300 \
\text { Entrants } & 200 \
\text { Reentrants } & 300 \
\text { Withdraw als } & 300
\end{array}
\end{array}$$
-On December 31, 2008, on a remote northern island there were 18,000 people employed, 2,000 people unemployed, and 5,000 people not in the labor force.The table above gives information taken from a labor survey on a remote northern island.If the working-age population does not change during 2009, then the labor force participation rate at the end of 2009 is

Question

$$\begin{array}{l}
\text { Labor Market Flows }\
\begin{array} { l c } 
\quad \text { During 2009 } & \text { Number of People } \
\hline \text { Hires and recalls } & 1,000 \
\text { Job losers } & 500 \
\text { Job leavers } & 300 \
\text { Entrants } & 200 \
\text { Reentrants } & 300 \
\text { Withdraw als } & 300
\end{array}
\end{array}$$
-On December 31, 2008, on a remote northern island there were 18,000 people employed, 2,000 people unemployed, and 5,000 people not in the labor force.The table above gives information taken from a labor survey on a remote northern island.If the working-age population does not change during 2009, then the labor force participation rate at the end of 2009 is

Quizplus · Accepted Answer

The labor force at the end of 2008 was the sum of the employed and unemployed: 
Labor force(Dec. 31, 2008) = 18,000 employed + 2,000 unemployed = 20,000

The working-age population equals the labor force plus those not in the labor force: 
Working age population = Labor force(Dec. 31, 2008) + not in labor force = 20,000 + 5,000 = 25,000

The labor force at the end of 2009 is the sum of those who are employed and unemployed: 
Labor force(Dec. 31, 2009) = Hires and recalls + Reentrants + Entrants - Job leavers - Job losers = 1,000 + 300 + 200 - 500 - 300 = 700

The labor force participation rate at the end of 2009 is the labor force divided by the working-age population: 
Labor force participation rate(Dec. 31, 2009) = Labor force(Dec. 31, 2009) / Working age population = 700 / 25,000 = 0.028 or 2.8%

Therefore, the best choice is B, as it is the closest to the actual labor force participation rate of 2.8%.

-On December 31, 2008, on a Remote Northern Island There