Question 1

-The labor force participation rate shows the percentage of
A) people not working, but who want to work.
B) people who are not actively participating in meaningful economic activity.
C) new entrants into the labor force.
D) non-institutionalized working-age people who are actually working or seeking employment.

Accepted Answer

The labor force participation rate is a measure of the proportion of the non-institutionalized working-age population that is either employed or actively seeking employment. It includes both people who are working and those who are looking for work but excludes those not actively seeking employment.

Question 2

If the labor force participation rate is rising and the working-age population is not changing, then the
A) size of the labor force is rising.
B) number of unemployed people is rising and the size of the labor force is falling.
C) size of the labor force is falling.
D) number of unemployed people is falling and the size of the labor force is rising.

Accepted Answer

A rising labor force participation rate means that a larger percentage of the working-age population is participating in the labor force, which translates to a larger labor force. If the working-age population is not changing, it means that more people are entering or staying in the labor force, either by finding employment or actively seeking it. Therefore, the size of the labor force is rising.

Question 3

In September 2014, the labor force participation rate fell from 62.8 percent to 62.7 percent. This change could have been caused by
A) unemployed workers giving up looking for a job.
B) full-time workers becoming part-time workers.
C) unemployed workers getting full-time jobs.
D) discouraged workers starting to look for jobs again.

Accepted Answer

The labor force participation rate measures the percentage of the population that is either employed or actively looking for work. When it decreases, it suggests that some individuals have stopped looking for work and thus are not considered part of the labor force. This could be due to various reasons, but the most likely reason in this case is that unemployed workers have given up looking for a job. This is supported by the fact that the unemployment rate remained unchanged at 6.1 percent, indicating that there were no significant improvements in job creation during this period.

Question 4

Which of the following pieces of information do you need to calculate the labor force participation rate?
I.the number of employed persons
II.the number of unemployed persons
III.the population
IV.the working age population
A) I and II
B) I and III
C) I, II and III
D) I, II and IV

Accepted Answer

To calculate the labor force participation rate, we need to know the number of employed and unemployed persons, as well as the working age population. The population as a whole is not necessary, as not everyone in the population is of working age. Therefore, choices I, II, and IV are all necessary to calculate the labor force participation rate.

Question 5

From 1980 to 2000 the labor force participation rate generally ________ and from 2000 to 2014 the rate generally ________.
A) increased; decreased
B) decreased; decreased
C) increased; increased
D) decreased; increased

Accepted Answer

From 1980 to 2000, the labor force participation rate generally increased, partly due to more women entering the workforce. From 2000 to 2014, the rate generally decreased, influenced by factors such as the aging population and economic changes.

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?
A) 83 percent
B) 84 percent
C) 80 percent
D) 87.5 percent

Accepted Answer

The labor force participation rate is calculated as the labor force divided by the total working-age population (labor force + those not in the labor force) times 100. Here, the labor force is 40 million employed + 2 million unemployed = 42 million. The total working-age population is 42 million (labor force) + 8 million (not in the labor force) = 50 million. Thus, the labor force participation rate is (42/50) * 100 = 84 percent.

Question 7

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.
A) working age population; 100/150
B) working age population; 100/250
C) number of employed persons; 100/250
D) number of employed persons; 100/150

Accepted Answer

The labor force participation rate is calculated as the labor force divided by the working age population, then multiplied by 100. If the working age population is 150, then the rate is (100/150)*100.

Question 8

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
A) 69.6 percent.
B) 23.3 percent.
C) 6.67 percent.
D) 50 percent.

Accepted Answer

The labor force participation rate is calculated as the labor force divided by the population eligible to participate in the labor force, then multiplied by 100. The labor force includes both employed and unemployed individuals. Here, the labor force is 150 million (employed) + 10 million (unemployed) = 160 million. The population eligible to participate is the total population minus those under 16 and institutionalized, which is 300 million - 70 million = 230 million. Thus, the labor force participation rate is (160 million / 230 million) * 100 = 69.6 percent.

Question 9

-The labor force participation rate is percentage of the ________ who are in the labor force.
A) people under age 65
B) working-age population
C) people over age 16
D) population

Accepted Answer

The labor force participation rate is the percentage of the working-age population (typically those aged 16 or older who are not institutionalized) who are either employed or actively looking for work.

Question 10

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?
A) 0.68 percent
B) 68 percent
C) 85.7 percent
D) 86.7 percent

Accepted Answer

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

Question 11

-In the above table, the working age population is
A) 225 million.
B) 100 million.
C) 140 million.
D) 155 million.

Accepted Answer

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

Question 12

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
A) 78.6 percent.
B) 71.4 percent.
C) 64.3 percent.
D) 66.6 percent.

Accepted Answer

The answer of If the number of people unemployed is...

Question 13

If the people who take early retirement are not counted in the working-age population, then
A) the unemployment rate would be lower.
B) the labor force participation rate would be less.
C) the unemployment rate would be higher.
D) the labor force participation rate would be higher.

Accepted Answer

The answer of If the people who take early retirement...

Question 14

-In the above table, the labor force participation rate is
A) 55 percent.
B) 44 percent.
C) 62 percent.
D) 69 percent.

Accepted Answer

The labor force participation rate is calculated by dividing the labor force by the total population eligible to participate in the labor force (usually adults 16 years and older not institutionalized) and then multiplying by 100 to get a percentage. Without the specific numbers from the "above table" mentioned in the question, the correct answer cannot be directly determined from the provided information. However, based on the choices given, if the correct answer is option C, it means that in the scenario described, 62 percent of the eligible population is either working or actively looking for work.

Question 15

-In the above table, the size of the labor force is
A) 210 million.
B) 155 million.
C) 140 million.
D) 100 million.

Accepted Answer

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

Question 16

-The labor force participation rate is the ratio of
A) (the labor force divided by the working-age population) multiplied by 100.
B) (the number of unemployed divided by the working-age population) multiplied by 100.
C) (the labor force divided by the total population) multiplied by 100.
D) (the number of unemployed divided by the labor force) multiplied by 100.

Accepted Answer

The labor force participation rate is calculated by dividing the labor force (the sum of those who are employed and those who are unemployed but seeking work) by the working-age population (typically those aged 16 and over who are not institutionalized) and then multiplying by 100 to get a percentage.

Question 17

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
A) 100/1500.
B) 100/1600.
C) 1500/2000.
D) 1600/2000.

Accepted Answer

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

So, the labor force participation rate would be:

(Labor force / Working age population) x 100

Labor force = employed + unemployed

Labor force = 1500 + 100

Labor force = 1600

Working age population = 2000

So, the labor force participation rate =

(1600 / 2000) x 100

= 80%

Therefore, the correct choice is D, 1600/2000.

Question 18

From 1980 to 2000 the employment-to-population ratio generally ________ and from 2000 to 2014 the ratio generally ________.
A) increased; decreased
B) decreased; decreased
C) increased; increased
D) decreased; increased

Accepted Answer

From 1980 to 2000, the employment-to-population ratio generally increased due to factors like the entry of the baby boom generation into the labor market, increased participation of women, and economic expansion. From 2000 to 2014, the ratio generally decreased, influenced by the 2008 financial crisis and its aftermath, which led to high unemployment rates and slower economic recovery.

Question 19

-In the above table, the unemployment rate is
A) 6 percent.
B) 24 percent.
C) 18 percent.
D) 29 percent.

Accepted Answer

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

Question 20

-The labor force participation rate is calculated as the
A) labor force divided by the number of persons employed then multiplied by 100.
B) number of persons unemployed divided by the labor force then multiplied by 100.
C) labor force divided by the unemployment rate then multiplied by 100.
D) labor force divided by the working age population then multiplied by 100.

Accepted Answer

The labor force participation rate is calculated by dividing the labor force (the sum of those who are employed and those who are unemployed but seeking work) by the working age population (typically those aged 16 and over who are not institutionalized) and then multiplying by 100 to get a percentage.

Quiz 5: Monitoring Jobs and Inflation

-The labor force participation rate shows the percentage of

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

In September 2014, the labor force participation rate fell from 62.8 percent to 62.7 percent. This change could have been caused by

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

From 1980 to 2000 the labor force participation rate generally and from 2000 to 2014 the rate generally .

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?

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.

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

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

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?

-In the above table, the working age population is

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

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

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

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

-The labor force participation rate is the ratio of

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

From 1980 to 2000 the employment-to-population ratio generally and from 2000 to 2014 the ratio generally .

-In the above table, the unemployment rate is

-The labor force participation rate is calculated as the