Foundations of Economics (8th Edition)
8th Edition
ISBN: 9780134486819
Author: Robin Bade, Michael Parkin
Publisher: PEARSON
expand_more
expand_more
format_list_bulleted
Concept explainers
Question
Chapter 24, Problem 4IAPA
To determine
To list:
The events that increase the
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
In December 2021, a small island country has an adult population of 20,000. The number of employed is 9,000 and the number of unemployed is 1,000.
(a) Find the unemployment rate and the labor-force participation rate.
(b) In June 2022, a foreign bank opens a branch in the capital of the country and hires 700 students who graduated from college in May 2022. In July 2022, a local company decides to close its factory laying off 3,000 workers. 600 of them find jobs in other industries, 2,000 spend three months looking for a job but get discouraged and decide to stay home and wait for better economic conditions, and as of December 2022 the remaining 400 have not found a job yet but are actively searching. Find the official unemployment rate and the labor-force participation rate in December 2022 if the only change in the adult population during the year was the tragic loss of 200 non-working retirees and 10 crew members in a local plane crash.
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.…
The country of Econoland produces two goods: textbooks and widgets. Last year produced 200 textbooks and 500 widgets. This year it produced 250 textbooks and 600 widgets. Given no other information which of the following could not explain the change? 
A) Econo land experienced an improvement in widget making technology
B) none of these answers are correct based on the question
C) Econo land experienced a reduction in unemployment
Can you help me understand this more
Chapter 24 Solutions
Foundations of Economics (8th Edition)
Ch. 24 - Prob. 1SPPACh. 24 - Prob. 2SPPACh. 24 - Prob. 3SPPACh. 24 - Prob. 4SPPACh. 24 - Prob. 5SPPACh. 24 - Prob. 6SPPACh. 24 - Prob. 7SPPACh. 24 - Prob. 8SPPACh. 24 - Prob. 9SPPACh. 24 - Prob. 10SPPA
Ch. 24 - Prob. 11SPPACh. 24 - Prob. 1IAPACh. 24 - Prob. 2IAPACh. 24 - Prob. 3IAPACh. 24 - Prob. 4IAPACh. 24 - Prob. 5IAPACh. 24 - Prob. 6IAPACh. 24 - Prob. 7IAPACh. 24 - Prob. 8IAPACh. 24 - Prob. 9IAPACh. 24 - Prob. 1MCQCh. 24 - Prob. 2MCQCh. 24 - Prob. 3MCQCh. 24 - Prob. 4MCQCh. 24 - Prob. 5MCQCh. 24 - Prob. 6MCQCh. 24 - Prob. 7MCQCh. 24 - Prob. 8MCQ
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.Similar questions
- Comment on the following statement. Analyze from an economic standpoint. Do you agree or disagree?a) Rising productivity means that it takes fewer workers to produce a given level of output. Productivity increases are therefore a source of unemployment“.b) It is impossible that you are worse off with a wage increase than you were before it“.arrow_forwardEconomists 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 retireesarrow_forward16 Every economy comprises of people who are out of the labor force. “Out of the labor force” is an economic term that refers to _______. a. Children below the age of 14 b. People who are retired c. All of the options d. People who are not ready to workarrow_forward
- Use the data presented in the following scenario to answer the questions that follow. labor force participation rate = # in labor force / # working age population * 100 unemployment rate = # unemployed / # in labor force * 100 The population of the country Econostan is 500,000 people, with 100,000 children, 50,000 elderly, and 350,000 working age people (assume no elderly people want to work). In 2016, 225,000 people in Econostan had a paying job and 50,000 people didn’t have a job but were actively looking for one. In 2017, 220,000 people in Econostan had a paying job and 30,000 people didn’t have a job but were actively looking for one. Question: What was the labor force participation rate in Econostan the unemployment rate in Econostan in 2016 and 2017 ?arrow_forwardUse the data presented in the following scenario to answer the questions that follow. labor force participation rate = # in labor force / # working age population * 100 unemployment rate = # unemployed / # in labor force * 100 The population of the country Econostan is 500,000 people, with 100,000 children, 50,000 elderly, and 350,000 working age people (assume no elderly people want to work). In 2016, 225,000 people in Econostan had a paying job and 50,000 people didn’t have a job but were actively looking for one. In 2017, 220,000 people in Econostan had a paying job and 30,000 people didn’t have a job but were actively looking for one. What was the labor force participation rate in Econostan in 2016? What was the unemployment rate in Econostan in 2016? What was the labor force participation rate in Econostan in 2017? What was the unemployment rate in Econostan in 2017? Describe what changes are happening in Econostan from 2016 to 2017. Is the labor market in Econostan improving?…arrow_forward1) Additional labor productivity would be equivalent to a) it is not equivalent any of the choices.b) education and skills.c) additional output for additional input.d) GDP per number of active labor force.e) all of the choices are correctf) marginal productivity of the worker. 2. All of the following will cause unemployment except a) educational institutionsb) quality of graduatesc) government policiesd) use of modern technologye) stable prices 3. Having a higher income means having more money to buy food, but a) there are choices that must be made to get the proper value for food consumed.b) eating processed/manufactured foods do little for the economy.c) quality and quantity of foods must be chosen.d) prices increase when income increases.e) restaurants are far better to eat in than fast food.arrow_forward
- "We believe that if men have the talent to invent new machines that put men out of work, they have the talent to put those men back to work which type of unemployment was president John F. Kennedy referring toarrow_forward1. Over the news, we have seen the exodus of unemployed migrant workers. They brought stories of struggles and sorrows on the future of their families. Most of the returning Overseas Foreign Workers (OFW) are the bread-winners of their families. Now they are unemployed they have to tighten their belts to make both ends meet. However, we have not heard much about the senior citizens who are the more vulnerable sector of society. With prices going up and a general advisory for them to refrain from going outside their quality of life is deteriorating. Therefore discuss what are the economic impacts of the current situation that posed problems/challenges to senior citizens.arrow_forwardQuestion 3 The table below gives some data on the population of Crescent Highland. Use the provided information to fill the table. YEARS 1 2 3 4 5 6 7 Population: 16 Years Older or Over (Millions) Labour Force (Millions) Employed (Millions) Unemployed (Millions) Labour Force Participation Rate Unemployment Rate Employment Rate 2000 105.0 58.9 3.3 2005 117.2 65.8 3.9 2010 137.1 78.7 4.1 2015 167.7 99.3 7.6 2020 189.2 118.8 7.0 2025 212.6 136.9 5.7 2030 232.8 139.1 14.8 2035 247.9 146.3 9.6 Note: Show the formula you used to calculate each column.arrow_forward
- Question No.15: Suppose the number of employed people in an economy is 121,166,640. The unemployment rate in this economy is 10.4 percent, or .104, and the labor force participation rate is 72.5 percent, or .725. What is the size of the labor force? How many people are unemployed? What is the size of the working-age population?arrow_forwardAn unemployed person is A person who wants a to work but does not look for oneA person who is actively seeking a paid jobA university graduateA volunteer who does charity workarrow_forwardBriefly describe what economists do and their typical working conditions.arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Brief Principles of Macroeconomics (MindTap Cours...EconomicsISBN:9781337091985Author:N. Gregory MankiwPublisher:Cengage Learning
Essentials of Economics (MindTap Course List)EconomicsISBN:9781337091992Author:N. Gregory MankiwPublisher:Cengage Learning
Brief Principles of Macroeconomics (MindTap Cours...
Economics
ISBN:9781337091985
Author:N. Gregory Mankiw
Publisher:Cengage Learning
Essentials of Economics (MindTap Course List)
Economics
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:Cengage Learning