Question

Use the following information to answer #6 and #7.
Employment Status of the working age population in Oreland:
Employed full-time: 1500
Employed part-time: 500
Unemployed and looking for work: 250
Unemployed and not looking for work: 150

6. Given the above information, the labor force participation rate of Oreland is
a. 94%
b. 11%
c. 22%
d. 17%
e. 28%

7. Given the above information, the unemployment rate of Oreland is
a. 94%
b. 11%
c. 22%
d. 17%
e. 28%

Use the following information to answer #8 and #9.
Employment Status of the working age population in Statesboro:
Employed full-time: 2500
Employed part-time: 250
Unemployed and looking for work: 500
Unemployed and not looking for work: 250

8. Given the above information, the labor force participation rate of Statesboro is
a. 19%
b. 93%
c. 21%
d. 15%
e. 23%

9. Given the above information, the unemployment rate of Statesboro is
f. 19%
g. 93%
h. 21%
i. 15%

10. People who stopped looking for work because they could not find jobs are called
a. Employed
b. Unemployed
c. Discouraged
d. Empowered

Answer 1

6. The labor force participation is defined as the ratio of labors who are employed, unemployed or part-time employed to the total labor force.

Given, employed full time = 1500

Employed part time = 500

Unemployed and looking for work = 250

Unemployed and not looking for work = 150

Labor force participation = 1500+500+250/1500+500+250+150

= 2250/2400

=93.75%= 94% apporx.

Correct option is option a.

7.​​​​​The unemployment rate is the ratio of number of unemployed people to the total number of people looking for work.

Here in this question, =250/1500+500+250

= 250/2250

= 11.11%= 11% aaprox

The correct option is option b 11%.

8. To calculate the labor force participation, we need to calculate ratio of labor who are either employed or unemployed or either looking for job to the total labor force. Those who are not looking for job are not considered for labor force participation.

=2500+500+250/2500+500+250+250

= 3250/3500

=92.85%= 93% approx.

The correct option is option b 93%

9. To calculate the labor force participation we need to find the ratio of unemployed to employed labors. Those who are not looking for job are considered as discouraged worker not as unemployed. So we will not consider them

=500/2500+500+250

= 500/3250

= 15.38%= 15% approx

The correct option is option i that is 15%.

10. As I mentioned above, those who stop looking for work are considered as discouraged. Because they are not looking for work as they are tired of searching for job and after failing to find job for long period they get discouraged.

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