Chapter 12 Unemployment and Inflation

11) What is the threshold age for individuals to be considered as being in the "labor force" for statistical purposes?

A) 16

B) 18

C) 21

D) Over 21

12) Suppose an economy consists of 500,000 individuals 16 years and older, 260,000 are employed, and 21,000 are unemployed but actively seeking work. In this example the labor force is

A) 239,000.

B) 260,000.

C) 281,000.

D) 500,000.

13) Suppose an economy consists of 500,000 individuals 16 years and older, 260,000 are employed, and 21,000 are unemployed but actively seeking work. In this example the labor force participation rate is approximately

A) 4%.

B) 48%.

C) 52%.

D) 56%.

14) Suppose an economy consists of 500,000 individuals 16 years and older, 260,000 are employed, and 21,000 are unemployed but actively seeking work. In this example the unemployment rate is approximately

A) 4.2%.

B) 6.1%.

C) 7.5%.

D) 8.0%.

15) In June 2012, the U.S. labor force consisted of 142,415,000 employed and 12,749,000 unemployed. The U.S. unemployment rate for June 2012 was about

A) 7.4%.

B) 8.2%.

C) 9.0%.

D) 11.2%.

Employment status of the working age

population of Metropolis is approximately:

Employed full-time:	4,200
Employed part-time:	700
Not employed and looking for work:	300
Not employed and not looking for work:	200

Table 12.1

16) Given the data in Table 12.1, the labor force participation rate of Metropolis is approximately

A) 96%.

B) 91%.

C) 83%.

D) 78%.

17) Given the data in Table 12.1, the unemployment rate of Metropolis is approximately

A) 6%.

B) 9%.

C) 12%.

D) 22%.

18) Suppose that 50% of the part-time workers of Metropolis are looking for full-time jobs. Given the data in Table 12.1, if these workers were counted as not employed and looking for work, the unemployment rate of Metropolis would be approximately

A) 6%.

B) 13%.

C) 16%.

D) 21%.

19) Given the data in Table 12.1, if the workers who are "not employed and not looking for work" were counted as not employed and in the labor force, the unemployment rate of Metropolis would be approximately

A) 4%.

B) 7%.

C) 9%.

D) 10%.

Recall the Application about declining U.S. labor force participation since 1999 to answer the following question(s).

20) Recall the application. One explanation for the decline in the U.S. labor force participation rate since 1999 is

A) the decline in the overall population.

B) the increasing number of retiring baby boomers.

C) the increase in immigration to the United States.

D) the increase in outsourcing by U.S. companies.