Assume the following people are interviewed by a representative of the Bureau of Labor Statistics. Classify...

Assume the following people are interviewed by a representative of the Bureau of Labor Statistics. Classify each as either employed, unemployed, or not in the labor force. For each scenario, explain why you classified the person the way you did.

Nancy Lopez reported to the interviewer that last week she worked 30 hours as a sales manager for the Coca-Cola Bottling company.
Bill Stevens lost his job when the local plant of Arco Steel Company was closed down. Since then, he has been visiting the personnel offices of the other factories in the town trying to find a job.
Patricia Hunter is a homemaker. Last week, she was occupied with her normal household chores. She neither held a job nor looked for a job. Her 75-year old father, Jake Jackson, lives with her and has not worked nor looked for work because of a disability.
Julie Simon is an autoworker. Last week she was not working because her union is on strike against the local automaker.
Tom Nguyen is a personnel director. Last week he was not working because he had problems finding child care for his two small children.
Explain how the natural rate of unemployment is determined.
Should the main macroeconomic aim of the government be full employment? Please explain your response.

Expert Solution

Solution

1.Nancy Lopez is unemployed as she is actively looking for job as she said she worked 30 hours last week but did not say she is presently working meaning she is unemployed right now.

2.Bill Stevens is unemployed as he lost his job and is actively looking for a new job.

3.Patricia Hunter is not in labor force since she is a homemaker meaning she is not employed and is not looking for any employment. Jake Jackson is also not in labor force

4. Julie Simon is employed since she is not working for the past 1 week due to strike.She is having her employment and is expected to work after the strike gets over.

5.Tom Nguyen is employed Last week he was not working because he had problems finding child care for his two small children He is expected to go for work once his problems settle

6. Natural rate of unemployment = (Frictional Unemployment + Structural Unemployment ) / Total Labor Force

Frictional unemployment occurs when the people are unemployed as they are in the process of moving from one job to another.

Structural unemployment is when the unemployment arises due to a mismatch between the skills the employees have and the skills the employers need.

7. No, the main macroeconomic aim of the government be full employment but it should be just minimum rate of unemployment / natural rate of unemployment.

This is because the situation of full employment is impossible.

In fact the least possible rate of unemployment possible is the natural rate of unemployment

Please comment in case you have any additional queries.Please give a "Thumbs Up" rating for the same !!

.

Rahul Sunny answered 1 year ago

1. What three categories does the Bureau of Labor Statistics classify adults in to measure unemployment?...

1. What three categories does the Bureau of Labor Statistics classify adults in to measure unemployment? _____________________________ _____________________________ ______________________________ What is the labor force? ___________________________________________________________________ What does the unemployment rate measure? ___________________________________________________ __________________________________________________________________________________________ 4. What does the labor force participation rate measure? ___________________________________________ __________________________________________________________________________________________ If the total population (age 16 and over) is 40 million, 1 million are unemployed, and 24 million currently hold jobs, how big is the labor force? _____________________________ what is the unemployment rate? _________________________ the labor...

According to the U.S. Bureau of Labor Statistics, 20% of all people 16 years of age...

According to the U.S. Bureau of Labor Statistics, 20% of all people 16 years of age or older do volunteer work. In this age group, women volunteer slightly more than men, with 22% of women volunteering and 19% of men volunteering. (Round all z values to 2 decimal places. Round all intermediate calculations and answers to 4 decimal places.) Appendix A Statistical Tables What is the probability of randomly sampling 140 women 16 years of age or older and getting...

The following data are from the Bureau of Labor Statistics and shows the outcome of women...

The following data are from the Bureau of Labor Statistics and shows the outcome of women at age 46: Less than High school High school grad Some college Bachelor’s degree + Ever Married 0.09 0.30 0.23 0.24 Ever Divorced 0.05 0.15 0.11 0.07 Never Married 0.02 0.05 0.03 0.04 Note that ever married and ever divorced are not mutually exclusive—the ”ever divorced” category is a subset of the ”ever married” category. (a) What percent of women were ever married? (b)...

How does the Bureau of Labor and Statistics compute the labor force and the unemployment rate?...

How does the Bureau of Labor and Statistics compute the labor force and the unemployment rate? How does the current U.S. unemployment rate compare with unemployment rates in other developed countries and unemployment rates from U.S. history? Define the following causes of unemployment: frictional, structural, and cyclical. Which of these causes is more paramount during a severe recession? How might governments reduce the amount of: 1) frictional and 2) structural unemployment? Why do unemployment rates in European countries tend to...

The survey by The Bureau of Labor Statistics American Time, showed that the time a person...

The survey by The Bureau of Labor Statistics American Time, showed that the time a person spends in the United States using a computer for entertainment varies greatly according to age. Individuals aged 75 years and older averaged 0.3 hrs (18 minutes) per day. Those aged 15 to 19 spent 1.0 hrs a day. If these times follow an exponential distribution find the proportion of each group that passes: a) Less than 15 minutes a day using the computer to...

The Bureau of Labor Statistics reported that the average yearly income of dentists in the year...

The Bureau of Labor Statistics reported that the average yearly income of dentists in the year 2011 was $110,000. A sample of 81 dentists, which was taken in 2012, showed an average yearly income of $120,000. Assume the standard deviation of the population of dentists’ incomes in 2012 is $36,000. a. We want to test to determine if there has been a significant increase in the average yearly income of dentists. Provide the null and the alternative hypotheses b. Compute...

According to the document Consumer Expenditures, a publication of the U.S. Bureau of Labor Statistics, the...

According to the document Consumer Expenditures, a publication of the U.S. Bureau of Labor Statistics, the average consumer unit spent $1749 on apparel and services in 2002. That same year, 25 consumer units in the Northeast had the following normally distributed annual expenditures, in dollars, on apparel and services. At the 5% significance level, do the data provide sufficient evidence to conclude that the 2002 mean annual expenditure on apparel and services for consumer units in the Northeast differed from...

When choosing a place to live, how is the Bureau of Labor Statistics beneficial ?

The Bureau of Labor and Statistics (BLS) calculates the unemployment rate for the United States. For...

The Bureau of Labor and Statistics (BLS) calculates the unemployment rate for the United States. For June of 2020, they published numbers that were close to the following: Civilian noninstitutional Population = 260 million Labor Force = 160 million Employed = 142 million Unemployed = 18 million Retired = 60 million A- Calculate the unemployment rate and the participation rate for June of 2020 in the US using two decimal places (3 points each). B- The United States have gone...

According to the bureau of labor statistics, it takes an average of 22 weeks for someone...

According to the bureau of labor statistics, it takes an average of 22 weeks for someone over 55 to find a new job, compared with 16 weeks for younger workers. Assume that the probability distributions are normal and that the standard deviation is 2 weeks for both distributions. A) What is the probability that it takes a worker over the age of 55 more than 19 weeks to find a job? B) What is the probability that it takes a...

Question