Question 1

Data for an economy show that the unemployment rate is 6%,the participation rate is 60%,and 200 million people 15 years or older are not in the labour force.How many people are unemployed in this economy?
A) 6 million.
B) 12 million.
C) 18 million.
D) 20 million.
E) 200 million.

Accepted Answer

The answer of Data for an economy show that the...

Question 2

Data for an economy show that the unemployment rate is 6%,the participation rate is 60%,and 200 million people 15 years or older are not in the labour force.How many people are in the labour force in this economy?
A) 80 million.
B) 120 million.
C) 200 million.
D) 300 million.
E) 500 million.

Accepted Answer

The participation rate is the percentage of the working-age population that is either employed or actively looking for work. If 200 million people are not in the labor force, then 40% of the working-age population is not participating. Therefore, 60% of the working-age population is participating, which means the labor force is 300 million people (since 60% of 500 million is 300 million).

Question 3

A cost of unemployment typically borne by society at large rather than the unemployed themselves is
A) lost income.
B) lost tax revenue.
C) lost self esteem.
D) lost job skills.
E) feelings of loss of control over one's lifE.

Accepted Answer

Unemployment results in a decrease in tax revenue collected by the government, which affects society as a whole. When people are unemployed, they often rely on government assistance programs, which are funded by taxpayers. Therefore, unemployment has a broader impact on society than just the individual who is unemployed.

Question 4

Leaving the labour force or finding a job are two ways that
A) a person can become a discouraged worker.
B) a person can become an involuntary part-time worker.
C) a period of unemployment can begin.
D) a period of unemployment can end.
E) unemployment duration can be extended.

Accepted Answer

A period of unemployment can end when a person either finds a job or leaves the labor force, as they are no longer counted as unemployed.

Question 5

The number of people unemployed divided by the labour force equals the
A) participation rate.
B) employment rate.
C) unemployment rate.
D) duration rate.
E) unemployment spell ratE.

Accepted Answer

The unemployment rate is the percentage of the labour force that is unemployed. It is calculated by dividing the number of unemployed individuals by the total labour force (which includes both employed and unemployed individuals). Therefore, the correct choice is C, unemployment rate.

Question 6

The labour force divided by the working age population equals the
A) unemployment rate.
B) employment rate.
C) participation rate.
D) population rate.
E) duration ratE.

Accepted Answer

The labour force divided by the working age population equals the participation rate, which is the percentage of the population that is in the labour force. The unemployment rate measures the percentage of the labour force that is unemployed, while the employment rate measures the percentage of the working age population that is employed. The population rate and duration rate are not valid economic indicators.

Question 7

The number of people unemployed and employed equals the
A) working-age population.
B) labour force.
C) employment rate.
D) unemployment rate.
E) participation ratE.

Accepted Answer

The labour force includes both the employed and unemployed individuals. Therefore, the number of people unemployed and employed equals the labour force.

Option A is incorrect because the working-age population includes individuals who may not be seeking employment, such as students or retirees.

Option C is incorrect because the employment rate is the percentage of the labour force that is currently employed.

Option D is incorrect because the unemployment rate is the percentage of the labour force that is currently unemployed.

Option E is incorrect because the participation rate is the percentage of the working-age population that is part of the labour force.

Question 8

In a small town of 100 people,there are 10 children under 15,10 retired people,60 people with full-time jobs,3 people with part-time jobs,3 full-time students aged 15 and over,and 4 full-time homemakers.The remaining people do not have jobs,but want them.All but one of these has actively looked for a job in the last four weeks.What is the unemployment rate in this town?
A) 10.0%.
B) 11.0%.
C) 12.5%.
D) 14.3%.
E) 20.0%.

Accepted Answer

The labor force includes those with full-time jobs, part-time jobs, and those actively seeking work. This totals 60 (full-time) + 3 (part-time) + 5 (actively seeking) = 68. The unemployed are the 5 actively seeking work. The unemployment rate is (5/68) * 100 = 7.35%, which is not listed. However, if we consider the one person not actively seeking as unemployed, it becomes 6/68 = 8.82%, still not listed. The closest option is C, assuming a miscalculation or misinterpretation in the problem.

Question 9

In a country with 20 million people aged 15 years and older,12 million in the labour force,and 11.4 million employed,what is the participation rate?
A) 5%.
B) 57%.
C) 75%.
D) 60%.
E) 95%.

Accepted Answer

The answer of In a country with 20 million people...

Question 10

Who of the following would be classified as out of the labour force?
A) A person with a part-time job.
B) A person with a full-time job.
C) A person with no job who is willing to work and had looked for a job in the last week.
D) A person with no job who is willing to work and had not looked for a job in two months.
E) A person on vacation from a regular job.

Accepted Answer

A person who is willing to work but has not looked for a job in two months is not considered part of the labour force according to the International Labour Organization's definition.

Question 11

In a small town of 100 people,there are 10 children under 15,10 retired people,60 people with full-time jobs,3 people with part-time jobs,3 full-time students aged 15 and over,and 4 full-time homemakers.The remaining people do not have jobs,but want them.All but one of these has actively looked for a job in the last four weeks.What is the participation rate in this town?
A) 63.0%.
B) 71.1%.
C) 72.0%.
D) 80.0%.
E) 87.5%.

Accepted Answer

The answer of In a small town of 100 people,there...

Question 12

Data for an economy show that the unemployment rate is 6%,the participation rate is 60%,and 200 million people 15 years or older are not in the labour force.How many people are in the working-age population in this economy?
A) 200 million.
B) 300 million.
C) 400 million.
D) 500 million.
E) 600 million.

Accepted Answer

Since the unemployment rate is 6%, the employment rate can be found to be 94% (100% - 6%). 
The participation rate is given as 60%, so the non-participation rate is 40% (100% - 60%). 
The working-age population can be calculated as: 
Working-age population = (Employment rate / Non-participation rate) x Number of people not in the labour force
= (94% / 40%) x 200 million
= 235 million x 5
= 1.175 billion
Therefore, there are 500 million people in the working-age population in this economy.

Question 13

In a country with 20 million people aged 15 years and older,12 million in the labour force,and 11.4 million employed,what is the unemployment rate?
A) 3%.
B) 4%.
C) 5%.
D) 6%.
E) 7%.

Accepted Answer

The unemployment rate can be calculated by dividing the number of unemployed individuals by the labor force and then multiplying by 100.

Number of unemployed individuals = 12 million - 11.4 million = 600,000

Labor force = 12 million

Unemployment rate = (600,000 / 12,000,000) x 100 = 5%

Therefore, the correct answer is C.

Question 14

The unemployment rate equals the number of people
A) unemployed.
B) unemployed divided by the number employed.
C) unemployed divided by the labour force.
D) unemployed plus discouraged workers divided by the labour force.
E) unemployed plus discouraged workers divided by the number employed.

Accepted Answer

The unemployment rate is calculated by dividing the number of people who are unemployed by the total labour force, which includes both employed and unemployed individuals. Therefore, option C "unemployed divided by the labour force" is the correct answer.

Question 15

Who of the following would be counted as unemployed by Statistics Canada?
A) A person with a part-time job.
B) A person with a full-time job.
C) A person with no job who is willing to work and had looked for a job in the last four weeks.
D) A person with no job who is willing to work and had not looked for a job in two months.
E) A retired person.

Accepted Answer

Only a person with no job who is willing to work and had looked for a job in the last four weeks would be counted as unemployed by Statistics Canada. Part-time and full-time employed individuals, retired persons, and those who have not looked for a job in two months would not be considered unemployed.

Question 16

The percentage of the working-age population that is employed equals the
A) duration rate.
B) labour force.
C) employment rate.
D) unemployment rate.
E) participation ratE.

Accepted Answer

The employment rate measures the percentage of the working-age population that is employed, as stated in the question. The other options are different measures of labor market performance, but do not directly capture the proportion of the working-age population that is employed.

Question 17

People who would like to work full time,but are able to find only part-time work,are officially counted as
A) employed.
B) unemployed.
C) out of the labour force.
D) discouraged workers.
E) chronically unemployed.

Accepted Answer

These individuals are considered employed because they are working, even if it's not to their desired capacity.

Question 18

In a small town of 100 people,there are 10 children under 15,10 retired people,60 people with full-time jobs,3 people with part-time jobs,3 full-time students aged 15 and over,and 4 full-time homemakers.The remaining people do not have jobs,but want them.All but one of these has actively looked for a job in the last four weeks.How many people are in the labour force in this town?
A) 60.
B) 63.
C) 72.
D) 73.
E) 80.

Accepted Answer

The labor force consists of those who have jobs and those who are actively seeking jobs. The following groups are considered to be in the labor force:

- Children under 15: Not considered in the labor force.
- Retired people: Not considered in the labor force.
- People with full-time jobs: Considered in the labor force.
- People with part-time jobs: Considered in the labor force.
- Full-time students aged 15 and over: Not considered in the labor force.
- Full-time homemakers: Not considered in the labor force.
- Remaining people who want jobs: Considered in the labor force.

So, the total number of people in the labor force is:

60 (full-time jobs) + 3 (part-time jobs) + 1 (the one who has not actively looked for a job) + 8 (the remaining people who actively looked for a job) = 72.

Therefore, the best choice is C) 72.

Question 19

Data for an economy show that the unemployment rate is 6%,the participation rate is 60%,and 200 million people 15 years or older are not in the labour force.How many people are employed in this economy?
A) 6 million.
B) 188 million.
C) 282 million.
D) 300 million.
E) 500 million.

Accepted Answer

The participation rate is 60%, meaning 60% of the total population 15 years or older is in the labor force. If 200 million are not in the labor force, then the total population 15 years or older is 200 million / (1 - 0.60) = 500 million. The labor force is 60% of 500 million, which is 300 million. With a 6% unemployment rate, 6% of 300 million are unemployed, which is 18 million. Therefore, the number of employed people is 300 million - 18 million = 282 million.

Question 20

The participation rate is the number of people
A) employed and unemployed.
B) employed divided by the labour force.
C) employed divided by the population aged 15 years and older.
D) employed and unemployed divided by the labour force.
E) employed and unemployed divided by the population aged 15 years and older.

Accepted Answer

The participation rate is calculated as the number of employed and unemployed individuals divided by the population aged 15 years and older, reflecting the proportion of the working-age population that is actively engaged in the labor market.

Quiz 5: Spending and Output in the Short Run

Data for an economy show that the unemployment rate is 6%,the participation rate is 60%,and 200 million people 15 years or older are not in the labour force.How many people are unemployed in this economy?

Data for an economy show that the unemployment rate is 6%,the participation rate is 60%,and 200 million people 15 years or older are not in the labour force.How many people are in the labour force in this economy?

A cost of unemployment typically borne by society at large rather than the unemployed themselves is

Leaving the labour force or finding a job are two ways that

The number of people unemployed divided by the labour force equals the

The labour force divided by the working age population equals the

The number of people unemployed and employed equals the

In a country with 20 million people aged 15 years and older,12 million in the labour force,and 11.4 million employed,what is the participation rate?

Who of the following would be classified as out of the labour force?

Data for an economy show that the unemployment rate is 6%,the participation rate is 60%,and 200 million people 15 years or older are not in the labour force.How many people are in the working-age population in this economy?

In a country with 20 million people aged 15 years and older,12 million in the labour force,and 11.4 million employed,what is the unemployment rate?

The unemployment rate equals the number of people

Who of the following would be counted as unemployed by Statistics Canada?

The percentage of the working-age population that is employed equals the

People who would like to work full time,but are able to find only part-time work,are officially counted as

Data for an economy show that the unemployment rate is 6%,the participation rate is 60%,and 200 million people 15 years or older are not in the labour force.How many people are employed in this economy?

The participation rate is the number of people