Question

1. For each of the following, state whether the individual is included or not included in the labor force and, if included, whether that person is counted as employed or unemployed, and if unemployed, which type of unemployment classification (frictional, structural, cyclical, or seasonal). You may designate “N/A” for non-applicable categories.
   1. Ben was laid off from his factory job during the 2010 recession and in order to pay his bills was forced to take a job at Wal-Mart
   2. Ashley was laid off after her company modernized their production systems and she has been forced to start looking for another jo
   3. After graduation, Madison is now applying to the top marketing companies in St. Louis
   4. After graduation, Eric decided to stay a full-time grad student and concentrates only on getting his MBA
   5. Sarah was laid off during the 2010 recession and became so frustrated with the lack of jobs she didn’t bother looking for a new one and decided to be a stay at home mom.
   6. Nick was laid off during the 2010 recession and is still looking for work.

Answer 1

Answer : Table showing information as follows :

Serial number	Applicant	Part of labour force or not	Employed/ Unemployed	Type of unemployment
a	Ben	part of Labour force	At present Ben is Employed	N/A
b	Ashley	part of Labour force	At present Ashley is unemployed because the production firm is modernized.	It is part of structural unemployment as it means that worker skill does not required in that particular firm.
c	Madison	Part of labour force	Unemployed because they are searching right job after graduation.	It is part of frictional unemployment because Madison takes some time in finding right job according to there qualification.
d	Eric	Not part of Labour force .Act as a student	N/A	N/A
e	Sarah	Not part of labour force	N/A	N/A

f

Nick

Part of labour force

Unemployed and actively searching job

Cyclical unemployment because loss of job due to recession.