Question

suppose the labor force stays constant, and the working - age population stays constant, but a greater number of persons who were unemployed become employed. the labor force participation rate will
remain constant.
decrease.
increase.
not change in a way that can be predicted.
question 11
1 pts
suppose the working - age population of a fictional economy falls into the following categories: 90 are retired or homemakers; 60 have full - time employment; 20 have part - time employment; 20 do not have employment, but are actively looking for employment; and 10 would like employment but do not have employment and are not actively looking for employment. the official unemployment rate as calculated by the u.s. bureau of labor would equal
(20/80)×100.
(20/100)×100.
(30/80)×100.
(20/60)×100.

Explanation:

First Question (Labor Force Participation Rate)

The labor force participation rate is calculated as $\frac{\text{Labor Force}}{\text{Working - age Population}}\times100$. The labor force is the sum of employed and unemployed (actively looking) individuals. Given that the labor force and working - age population are constant, even though more unemployed become employed, the numerator (labor force) and denominator (working - age population) of the labor force participation rate formula do not change. So the rate remains constant.

Step 1: Calculate the Labor Force

The labor force is the sum of employed and unemployed (actively looking) people. The number of employed people is the sum of full - time and part - time employed, so $60 + 20=80$. The number of unemployed (actively looking) is 20. So the labor force $=80 + 20=100$? Wait, no, wait. Wait, employed is full - time (60) + part - time (20) = 80. Unemployed (actively looking) is 20. So labor force $L = 80+20 = 100$? Wait, no, the unemployment rate formula is $\frac{\text{Unemployed (actively looking)}}{\text{Labor Force}}\times100$. The unemployed (actively looking) is 20. The labor force is employed (80) + unemployed (20) = 100? Wait, no, 60 (full - time) + 20 (part - time)=80 (employed). Unemployed (actively looking) is 20. So labor force $=80 + 20=100$. Then the unemployment rate is $\frac{20}{100}\times100$? Wait, no, wait 60 + 20 is 80 (employed), 20 is unemployed (actively looking). So labor force is 80 + 20 = 100. Unemployment rate $=\frac{\text{Unemployed}}{\text{Labor Force}}\times100=\frac{20}{100}\times100$? Wait, no, wait 60 + 20 is 80 (employed), 20 is unemployed. So labor force is 80+20 = 100. So unemployment rate is $\frac{20}{100}\times100$? Wait, but let's re - check. The formula for the official unemployment rate (by U.S. Bureau of Labor) is $\frac{\text{Number of unemployed (actively seeking work)}}{\text{Labor Force}}\times100$, where labor force is employed + unemployed (actively seeking). Employed: 60 (full - time)+20 (part - time) = 80. Unemployed (actively seeking): 20. So labor force $=80 + 20=100$. Unemployed (actively seeking) = 20. So unemployment rate $=\frac{20}{100}\times100$.

Step 2: Analyze the Options

Option 1: $(20/80)\times100$: Denominator is wrong, labor force is not 80. Option 2: $(20/100)\times100$: This is correct as labor force is 100 and unemployed (actively looking) is 20. Option 3: $(30/80)\times100$: 30 is not the number of unemployed (we only count actively looking, which is 20, not 20 + 10 as 10 are not actively looking). Option 4: $(20/60)\times100$: Denominator is wrong.

Answer:

remain constant.

Question 11 (Unemployment Rate)