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Consider a small economy composed of 6 people: Hubert, Alyssa, Nathan, Sunita, R

ID: 1160744 • Letter: C

Question

Consider a small economy composed of 6 people: Hubert, Alyssa, Nathan, Sunita, Robert, and Julia. Each person's employment status is described in the following table. Based on the criteria used by the Bureau of Labor Statistics, classify each person as employed, unemployed, not in the labor force but still part of the adult population, or not in the adult population.

The labor force participation rate reported by the BLS is given by the following formula:

Person Status Robert is a 32 year-old who lost his job as an associate producer for a radio station. After spending a few weeks out of work and interviewing for several other positions he gave up on his job search a few months ago and has decided to go grad school Julia is a famous novelist. She is spending the summer at her lake house in upstate New York, doing a little writing each day but mostly spending her time gardening and reading Nathan is a 39-year-old accountant who has been out of work for almost a year. He became so discouraged that, a couple of months ago, he gave up on his job search. Hubert is a 22-year-old professional tennis player. When he's not competing, he works l as a coach at a local tennis club. Alyssa is a 32-year-old professional basketball player. She finished her last season as a player three weeks ago and is currently interviewing for a coaching position. Sunita is a 13-year-old student at East Valley Middle School. She babysits her younger brother and does other chores, for which her parents give her an allowance of $30 per week.

Explanation / Answer

Ans

Not in labour force

Employed because she works part time

Not in labour force

Employed

UnEmployed  

Not in labour force

2 number of people actively participating in labour force /total no. Of people eligible to participate in labour force (100)=3/5(100)=60%.note sunita is underage and can't be in labour force

Unemployment rate=unemployed /labour force (100)=1/3(100)=33%