EXPLORING ECON.-W/ACCESS (LL) >CUSTOM<
EXPLORING ECON.-W/ACCESS (LL) >CUSTOM<
7th Edition
ISBN: 9781305757448
Author: Sexton
Publisher: CENGAGE C
Question
Chapter 18, Problem 1P
To determine

(a)

To compute:

The labor force participation rate for the given situation.

Expert Solution
Check Mark

Answer to Problem 1P

The labor force participation is 80% if the total adult population =200million, the labor force =160million and employment =140million.

Explanation of Solution

Given information:

Total adult population =200million

The labor force =160million

Calculation for labor force participation:

Laborforceparticipation=LaborforceTotaladultpopulation×100=160million200million×100=80

Hence, the labor force participation is 80%.

Economics Concept Introduction

Labor force participation:

It refers to that percentage of current total population that is willing to work or is working;which means the labor force in total adult population.

Laborforceparticipation=LaborforceTotaladultpopulation×100

To determine

(b)

To compute:

The labor force participation rate for the given situation.

Expert Solution
Check Mark

Answer to Problem 1P

The labor force participation is 70% if

Totaladultpopulation=200million, thelaborforce=140million,andemployment=120million.

Explanation of Solution

Given information:

Total adult population =200million

The labor force =140million

Calculation for labor force participation:

Laborforceparticipation=LaborforceTotaladultpopulation×100=140million200million×100=70

Labor force participation is 70%.

Economics Concept Introduction

Labor force participation:

It refers to that percentage of current total population that is willing to work or is working;which means the labor force in total adult population.

Laborforceparticipation=LaborforceTotaladultpopulation×100

To determine

(c)

To compute:

The labor force participation rate for the given situation.

Expert Solution
Check Mark

Answer to Problem 1P

Labor force participation will be 65% If 30million people have lost, their jobs and all of them exited the labor force

Explanation of Solution

Given information:

Total adult population =200million

The labor force =160million

Calculation for labor force participation:

  Laborforceparticipation=LaborforceTotaladultpopulation×100=160million200million×100=80

Labor force participation is 80%

It is the initial labor force participation.

Now, if 30million people have lost their jobs and all of them exit the labor force, then the new labor force will be130 million (160million30million).

The new labor force participation is,

Laborforceparticipation=LaborforceTotaladultpopulation×100=130200×100=65

Thus, the labor force participation will be 65% if 30million people lost their jobs and all of them exited the labor force.

Economics Concept Introduction

Labor force participation:

It refers to that percentage of current total population that is willing to work or is working;which means the labor force in total adult population.

Laborforceparticipation=LaborforceTotaladultpopulation×100

To determine

(d)

To compute:

The labor force participation rate for the given situation.

Expert Solution
Check Mark

Answer to Problem 1P

Labor force participation will be 85% if employment rises from 140million to 150million.

Explanation of Solution

Given information:

Total adult population =200million

The labor force =160million

Calculation for labor force participation:

Laborforceparticipation=LaborforceTotaladultpopulation×100=160million200million×100=80

Labor force participation is 80%. It is the initial labor force participation.

Now,

If employment rose from 140million to 150million, this means the labor force increased from 160milllion and 10million .Total number of labor force is 170million.

Calculation of labor force participation:

Laborforceparticipation=LaborforceTotaladultpopulation×100=170million200million×100=85

Thus, the labor force participation will be 85% if employment rose from 140million to 150million.

Economics Concept Introduction

Labor force participation:

It refers to that percentage of current total population that is willing to work or is working;which means the labor force in total adult population.

Laborforceparticipation=LaborforceTotaladultpopulation×100

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!
Students have asked these similar questions
the ______ population = 200 million, the labor= 160 million, and employment= 140 million  c) Starting from the situation in (a), what would happen to the labor force participation rate if 30 million people lost their jobs and all of them exited the labor force?   d) Starting from the situation in (a), what would happen to the labor force participation rate if employment rose from 140 million to 150 million?
Based on the information in the table below, calculate the labor force participation rate, and the percentage or workers out of the labor force: Total adult population over the age of 16 83 million Total in the labor force 63 million Total Employed 60 million Total Unemployed 3 million Total out of the labor force 20 million Group of answer choices Participation rate: 24.1%, Out of the labor force: 92.5% Participation rate: 75.9%; Out of the labor force: 24.1% Participation rate: 5%,Out of the labor force: 15% Participation rate: 24.1%, Out of the labor force:75.9%
Between 1980 and 2015, by how many percentage did the labor force participation rate of men change? women change?
Knowledge Booster
Similar questions
  • The following information is given for an economy:   Labor Force of an Economy                                                                                                 Number of People (millions) Total population                                                                                      46.5 Children under the age of 16                                                                    8.5 Retirees                                                                                                    7.8 Employed                                                                                                23.9 Unemployed                                                                                              2.5 Not actively seeking employment                                                             3.0 Homemakers                                                                                            0.8   Instructions: Round your answers to one decimal place.…
    Economists use labour-market data to evaluate how well an economy is using its most valuable resource— its people. Two closely watched statistics are the unemployment rate and the employment-population ratio. Explain what happens to each of these in the following scenarios. In your opinion, which statistic is the more meaningful gauge of how well the economy is doing? a. An auto company goes bankrupt and lays off its workers, who immediately start looking for new jobs. b. After an unsuccessful search, some of the laid-off workers quit looking for new jobs. c. Numerous students graduate from college but cannot find work. d. Numerous students graduate from college and immediately begin new jobs. e. A stock market boom induces newly enriched 60-year-old workers to take early retirement. f. Advances in healthcare prolong the life of many retirees
    Suppose the population of a fictional economy falls into the following categories:  28 million are retired or homemakers; 30 million have full-time employment; 24 million have one part-time job; 28 million have two part-time jobs; 12 million do not have employment, but are actively looking for employment; and 20 million would like employment but do not have employment and are not actively looking for employment. 5 million are under the age of 10.  What is the labor force participation rate (as a percentage, not decimals) for this economy? Use the numbers from Question above
  • If you are out of school but working part time, are you considered employed or unemployed in U.S. labor statistics? If you are a full time student and working 12 hours a week at the college cafeteria are you considered employed or not in the labor force? If you are a senior citizen who is collecting social security and a pension and working as a greeter at Wal-Mart are you considered employed or not in the labor force?
    Economists use labor-market data to evaluate how well an economy is using its most valuable resource— its people. Two closely watched statistics are the unemployment rate and the employment–population ratio (calculated as the percentage of the adult population that is employed). Explain what happens to each of these in the following scenarios. In your opinion, which statistic is the more meaningful gauge of how well the economy is doing?   Situations unemployment rate employment–population ratio More meaningful one a. An auto company goes bankrupt and lays off its workers, who immediately start looking for new jobs       b. After an unsuccessful search, some of the laid-off workers quit looking for new jobs.       c. Numerous students graduate from college but cannot find work.       d. Numerous students graduate from college and immediately begin new jobs.       e. A stock market boom induces newly enriched 60-year-old workers to take early retirement.…
    If wages are rising over time, what would you predict about the trend in the labor force participation for each of the two populations?
    • SEE MORE QUESTIONS
    Recommended textbooks for you
  • Exploring Economics
    Economics
    ISBN:9781544336329
    Author:Robert L. Sexton
    Publisher:SAGE Publications, Inc
    Macroeconomics: Private and Public Choice (MindTa...
    Economics
    ISBN:9781305506756
    Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
    Publisher:Cengage Learning
    Economics: Private and Public Choice (MindTap Cou...
    Economics
    ISBN:9781305506725
    Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
    Publisher:Cengage Learning
  • Exploring Economics
    Economics
    ISBN:9781544336329
    Author:Robert L. Sexton
    Publisher:SAGE Publications, Inc
    Macroeconomics: Private and Public Choice (MindTa...
    Economics
    ISBN:9781305506756
    Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
    Publisher:Cengage Learning
    Economics: Private and Public Choice (MindTap Cou...
    Economics
    ISBN:9781305506725
    Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
    Publisher:Cengage Learning