Question

suppose that homemakers are included as employed in the labor force statistics, rather than being counted as out of the labor force. this would
increase the measured labor force participation rate.
increase the measured unemployment rate.
decrease the number of persons in the working - age population.
decrease the number of persons in the labor force.
question 7
1 pts
suppose that the labor movement has a revival in the united states and the majority of workers join labor unions. as a result we would expect
the labor force participation rate to fall.
the unemployment rate to fall.
no change in the unemployment rate or labor force participation rate.
the unemployment rate to rise.

Explanation:

First Question (About Homemakers in Labor Force)

• Labor force participation rate = (Labor Force / Working - Age Population) × 100. Labor force includes employed + unemployed. Homemakers were out of labor force; including them as employed increases labor force. Working - age population doesn't change. So the participation rate (labor force/working - age population) increases.
• Unemployment rate = (Unemployed / Labor Force) × 100. Homemakers are employed, so unemployed number doesn't change, but labor force increases. So unemployment rate would decrease, not increase.
• Working - age population is a demographic measure, not affected by labor force classification of homemakers, so it doesn't decrease.
• Labor force increases (as homemakers are added as employed), so it doesn't decrease.

• Labor force participation rate is about people in/out of labor force (employed + unemployed) relative to working - age population. Union membership doesn't directly affect who is in the labor force or working - age population, so participation rate doesn't fall.
• Unemployment rate = (Unemployed / Labor Force) × 100. Union membership (workers joining unions) doesn't change the number of unemployed or the labor force (since unions are about employed workers' organization, not about employment status counts). So unemployment rate doesn't fall.
• Since union membership doesn't affect the counts of unemployed or labor force (employed + unemployed) relative to working - age population, there's no change in unemployment rate or labor force participation rate.
• Unemployment rate doesn't rise as union membership doesn't create unemployment or change labor force composition in a way that increases unemployed relative to labor force.

Answer:

increase the measured labor force participation rate.

Question 7 (Labor Movement and Unions)