Question

Consider a small economy composed of six people: Felix, Janet, Larry, Megan, Susan, and Raphael. 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
Felix is a 23-year-old professional tennis player. When he's not competing, he works as a coach at a local tennis club.
Janet is a 25-year-old recent college graduate. She did not work for pay last week, but she had two job interviews.
Larry is a 45-year-old accountant who has been out of work for almost a year. He became so discouraged that he gave up on his job search a couple of months ago.
Susan 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.
Raphael 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.
Megan is a 10-year-old student at Southside Middle School. She babysits her younger sister and does other chores, so her parents give her an allowance of $20 per week.

What is the formula for the labor force participation rate?

According to this formula, what is the labor force participation rate of this economy of six people?

33.33%

40%

50%

60%

What is the formula for the unemployment rate?

According to this formula, what is the unemployment rate of this economy of six people?

33.33%

40%

50%

60%

Answer 1

Person	Status
Felix is a 23-year-old professional tennis player. When he's not competing, he works as a coach at a local tennis club.	Employed
Janet is a 25-year-old recent college graduate. She did not work for pay last week, but she had two job interviews.	Unemployed
Larry is a 45-year-old accountant who has been out of work for almost a year. He became so discouraged that he gave up on his job search a couple of months ago.	Not in the labor force
Susan 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.	Not in the labor force
Raphael 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.	Employed
Megan is a 10-year-old student at Southside Middle School. She babysits her younger sister and does other chores, so her parents give her an allowance of $20 per week.	Not in the adult population

labor force participation rate = 100*Number in labor force/Adult population

= 100*3/5 = 60%

unemployment rate = 100*Number of unemployed workers/labor force

= 100*1/3 = 33.33%