Question

ECO - 252 - Macroeconomics

5. Classify each of the following as employed, unemployed, or not in the labor force.

a. The government decides to increase the minimum wage. Kirk loses his job as a result and reads through the classifieds for employment offers.

b. The Wildflour, a local bakery, experiences a decrease in sales caused by a slowing down of the economy. Due to the decrease in sales, the bakery lays off their assistant baker, John. John decides to enroll full time in a culinary school to learn new skills.

c. Sharon spent the last 13 years raising her children but she is now ready to go back to work. She started to look for a job but has not found anything yet.

d. Tao is looking for a job. He turned down a couple of offers because they did not let him use the skills he has recently acquired.

e. Alice was laid off from her job at the auto plant because a recession reduced the demand for cars. She immediately starts looking for a job but to keep busy she spends more time volunteering at her local church.

f. Karen, a software engineer, lost her job when the start-up company she was working for went bankrupt. She interviewed at five companies but was not called back. As a result she gave up looking for a job.

g. Jonathan currently works at the Federal Reserve Bank in Kansas City, but has no prospect of being promoted. He begins a job search and is called in his Kansas City office by Boeing based in Seattle.

Answer 1

Ans:

Unemployed means people must have no job and must be actively seeking employment.

Classify each of the following as employed, unemployed, or not in the labor force

The government decides to increase the minimum wage. Kirk loses his job as a result and reads through the classifieds for employment offers.	Unemployed
John decides to enroll full time in a culinary school to learn new skills.	Not in the labor force
Sharon spent the last 13 years raising her children but she is now ready to go back to work. She started to look for a job but has not found anything yet.	Unemployed
Tao is looking for a job. He turned down a couple of offers because they did not let him use the skills he has recently acquired.	Unemployed
Alice was laid off from her job at the auto plant because a recession reduced the demand for cars. She immediately starts looking for a job but to keep busy she spends more time volunteering at her local church.	Employed
Karen, a software engineer, lost her job when the start-up company she was working for went bankrupt. She interviewed at five companies but was not called back. As a result she gave up looking for a job.	Not in the labor force
Jonathan currently works at the Federal Reserve Bank in Kansas City, but has no prospect of being promoted. He begins a job search and is called in his Kansas City office by Boeing based in Seattle.	Employed