Based on the criteria used by the Bureau of Labor Statistics (BLS), identify each personâs status as employed, unemployed, ânot in the labor forceâ (if not in the civilian labor force but still part of the adult population), or ânot in the adult populationâ if not in the civilian adult population.
Kenji is a 71-year-old professor. He teaches only one or two courses a year, but he's still pursuing an active research agenda.
Lucia is a 27-year-old recent college graduate. She did not work for pay last week, but she had two job interviews.
Paolo is a 39-year-old graphic designer who is taking 2 years off from work to care for his small daughter.
Amy is a 26-year-old who lost her job as a copy editor for a local newspaper. She has spent the past few weeks out of work and interviewing for other editing jobs. She is thinking about going back to grad school if her job search doesn't succeed after a few more weeks.
Van is a 17-year-old who just graduated from high school. He is taking it easy this summer, relaxing by the pool with his friends and family, and volunteering part-time at the local nursing home.
Sharon is a 11-year-old student at West Valley Middle School. She babysits her younger sister and does other chores, so her parents give her an allowance of $20 per week.
Based on the criteria used by the Bureau of Labor Statistics (BLS), identify each personâs status as employed, unemployed, ânot in the labor forceâ (if not in the civilian labor force but still part of the adult population), or ânot in the adult populationâ if not in the civilian adult population.
Kenji is a 71-year-old professor. He teaches only one or two courses a year, but he's still pursuing an active research agenda.
Lucia is a 27-year-old recent college graduate. She did not work for pay last week, but she had two job interviews.
Paolo is a 39-year-old graphic designer who is taking 2 years off from work to care for his small daughter.
Amy is a 26-year-old who lost her job as a copy editor for a local newspaper. She has spent the past few weeks out of work and interviewing for other editing jobs. She is thinking about going back to grad school if her job search doesn't succeed after a few more weeks.
Van is a 17-year-old who just graduated from high school. He is taking it easy this summer, relaxing by the pool with his friends and family, and volunteering part-time at the local nursing home.
Sharon is a 11-year-old student at West Valley Middle School. She babysits her younger sister and does other chores, so her parents give her an allowance of $20 per week.
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Related questions
Although GDP is a reasonably good measure of a nation's output, it does not necessarily include all transactions and production for that nation. Which of the following activities is either not accounted for or are measured inaccurately in calculations of GDP for the United States? Check all that apply.
-Funds spent by city governments to renovate their buildings
-The costs of air and water pollution
-The Brazilian wood that is used for flooring in a new U.S. house
-The leisure time enjoyed by Americans
-The value produced by doing your own laundry
2.
Consider a small economy composed of six people: Clancy, Eileen, Hubert, Kate, Poornima, and Manuel. Each person's employment status is described in the following table.
Based on the criteria used by the Bureau of Labor Statistics (BLS), identify each person's status as employed, unemployed, not in the labor force, if not in the civilian labor force but still part of the adult population, or not in the adult population if not in the civilian adult population.
Person | Status |
---|---|
-Clancy is a 20-year-old professional tennis player. When he's not competing, he works as a coach at a local tennis club. | |
-Eileen is a 36-year-old autoworker who was just laid off by her employer. She is trying to find any kind of job to help make ends meet. |
|
-Hubert is a 79-year-old retired professor. He enjoys volunteering at the local public library. |
|
-Poornima is a 29-year-old who lost her job as an associate producer for a radio station. After spending a few weeks out of work and interviewing for several other positions, she gave up on her job search and decided to go back to grad school. She made that decision a few months ago. |
|
-Manuel is a famous novelist. He is spending the summer at his lake house in upstate New York, doing a little writing each day but mostly spending his time gardening and reading. |
|
-Kate is an 11-year-old student at East Valley Middle School. She baby-sits her younger brother and does other chores for which her parents give her an allowance of $30 per week. |
3.
Initially, Ana earns a salary of $300 per year and Yakov earns a salary of $200 per year. Ana lends Yakov $100 for one year at an annual interest rate of 16% with the expectation that the rate of inflation will be 12% during the one-year life of the loan. At the end of the year, Yakov makes good on the loan by paying Ana $116. Consider how the loan repayment affects Ana and Yakov under the following scenarios.
Scenario 1: Suppose all prices and salaries rise by 12% (as expected) over the course of the year. In the following table, find Ana's and Yakov's new salaries after the 12% increase, and then calculate the $116 payment as a percentage of their new salaries. (Hint: Remember that Ana's salary is her income from work and that it does not include the loan payment from Yakov.)
- Value of Ana's new salary after one year?
-The $116 payment as a percentage of Ana's new salary?
-Value of Yakov's new salary after one year
-The $116 payment as a percentage of Yakov's new salary
Scenario 2: Consider an unanticipated decrease in the rate of inflation. The rise in prices and salaries turns out to be 2% over the course of the year rather than 12%. In the following table, find Ana's and Yakov's new salaries after the 2% increase, and then calculate the $116 payment as a percentage of their new salaries.
-Value of Ana's new salary after one year
-The $116 payment as a percentage of Ana's new salary
-Value of Yakov's new salary after one year
-The $116 payment as a percentage of Yakov's new salary
QUESTION 1
Rosina Gonzales quit her job in Pennsylvania and moved to California to be close to her family. She is currently looking for work, so she would be considered
frictionally unemployed. | ||
cyclically unemployed. | ||
a discouraged worker. | ||
seasonally unemployed. |
1 points
QUESTION 2
Discouraged workers
are counted as unemployed workers when the unemployment rate is calculated. | ||
would decrease the unemployment rate if they were added to the number of unemployed workers. | ||
are counted as one-half of a worker in the unemployment statistics. | ||
would increase unemployment rate if they were added to the number of unemployed workers. |
1 points
QUESTION 3
In measuring the unemployment rate, part-time workers are ________ and discouraged workers are ________.
included as employed; included as unemployed | ||
excluded; excluded | ||
excluded; included as unemployed | ||
included as employed; excluded |
1 points
QUESTION 4
Mary has decided that the she does not like Iowa and has decided to quit her job as a medical technician and move to Arizona. Mary's unemployment as she searches for a new job is best classified as
frictional. | ||
cyclical. | ||
structural. | ||
seasonal. |
1 points
QUESTION 5
When a golf caddy in Minnesota (where golf courses close in the winter) is unemployed in December, it is most likely the case that the golf caddy is
cyclically unemployed during long droughts. | ||
frictionally unemployed during spring and summer. | ||
structurally unemployed during spring and summer. | ||
seasonally unemployed. |
1 points
QUESTION 6
After graduating from college, Yunis, age 22, started working for his parent's real estate business as an unpaid assistant. He works 25 hours a week helping manage rental units . In the Current Population Survey, Yunis is considered
part of the labor force and employed. | ||
part of the labor force and unemployed. | ||
a discouraged worker. | ||
not part of the labor force. |
1 points
QUESTION 7
The working-age population includes
youngsters between the ages of 14 and 16 if they are working at least part time. | ||
only employed people over the age of 16. | ||
those in jails and hospitals. | ||
employed and unemployed people over the age of 16. |
1 points
QUESTION 8
Involuntary part-time workers are workers who
work less than 35 hours but would like to work full time. | ||
work more than 35 hours but would like to work less than 35 hours. | ||
work less than 35 hours by choice. | ||
work have lost their jobs within the last four weeks and are seeking another job. |
1 points
QUESTION 9
Frictional unemployment is the result of
the normal process of jobs being created and destroyed. | ||
an economic recession. | ||
people not getting along (having friction) with their employers. | ||
the economic decline of major industries |
1 points
QUESTION 10
Bill just graduated with his degree in economics. Through Career Services he submitted his resume to several companies and he will visit them during the next two weeks. Bill is considered
not in the labor force. | ||
cyclically unemployed. | ||
frictionally unemployed. | ||
structurally unemployed. |
1 points
QUESTION 11
Harry works at the video rental store for 20 hours per week. He's asked his boss to allow him to work 40 hours per week, but has been told that business is too slow. Harry is considered
an involuntary part-time worker. | ||
a marginally attached worker. | ||
a discouraged worker. | ||
not in the labor force. |
1 points
QUESTION 12
Discouraged workers who are over 16 years old are
i.not counted as unemployed.
ii.part of the working-age population.
iii.part of the labor force.
i and ii | ||
ii and iii | ||
ii only | ||
i only |
1 points
QUESTION 13
Higher unemployment benefits create
higher seasonal unemployment as workers switch jobs. | ||
a lower number of job leavers. | ||
incentives for longer job searches and higher frictional unemployment. | ||
incentives for shorter job searches and higher structural unemployment. |
1 points
QUESTION 14
Seasonal unemployment includes people who become unemployed from
changes in the business cycle. | ||
technological changes. | ||
the seasonal weather patterns. | ||
normal changes in the labor force. |
1 points
QUESTION 15
Cyclical unemployment is
higher when the economy is expanding. | ||
always greater than the total of structural and frictional unemployment. | ||
the total of structural and frictional unemployment. | ||
created by a recession. |
1 points
QUESTION 16
Which of the following people would be classified as employed in the Current Population Survey?
April, who just graduated from college and is looking for work | ||
Jason, who was laid off from work less than 6 months ago but who has stopped looking for work | ||
Rich, who is working 20 hours a week but wants a full-time job | ||
Misty, who just quit her job to return full time to school |
1 points
QUESTION 17
People who are willing and able to work but are not looking for work because they have been discouraged by their previous futile efforts are called
discouraged workers. | ||
involuntarily unemployed. | ||
part-time lookers. | ||
unemployed workers. |
1 points
QUESTION 18
Discouraged workers are included in the calculation of the
i.unemployment rate.
ii.labor force participation rate.
iii.working-age population.
i and ii | ||
i only | ||
iii only | ||
ii only |
1 points
QUESTION 19
As firms search for the best employee to fill an opening and the unemployed search for the job that best fits their skills, the economy experiences
changes in the business cycle. | ||
cyclical unemployment. | ||
frictional unemployment. | ||
structural unemployment. |
1 points
QUESTION 20
Suppose the U.S. population is 275 million. If 210 million people are of working age, 135 million are employed, and 6 million are unemployed, what is the labor force participation rate?
64 percent | ||
67 percent | ||
76 percent | ||
49 percent |
1 points
QUESTION 21
During a recession the unemployment rate generally ________ and during an expansion the unemployment rate generally ________.
rises; rises | ||
rises; does not change | ||
falls; rises | ||
rises; falls |
1 points
QUESTION 22
In January of 2001, the population of the United States was 276.8 million, the working-age population was 210.2 million, the total number of people employed was 140, and the total number of people unemployed was 5.0 million. What was the labor force participation rate?
56 percent | ||
69 percent | ||
78 percent | ||
67 percent |
1 points
QUESTION 23
If Brian, age 24, had no job but was available for work and had looked for a job the week before the survey, Brian is classified in the Current Population Survey as
unemployed. | ||
employed. | ||
a discouraged worker. | ||
not in the labor force. |
1 points
QUESTION 24
Julie works part-time for economic reasons. She would be considered
an involuntary part-time worker. | ||
not in the labor force. | ||
a job seeker. | ||
a discouraged worker. |
1 points
QUESTION 25
Suppose the population is 300 million people, the labor force is 200 million people, the number of people employed is 185 million, and the working-age population is 170 million people. What is the unemployment rate?
5 percent | ||
7.5 percent | ||
8.8 percent | ||
92.5 percent |
1 points