Question

In: Economics

Consider a country with 500 adult population in 2018. Suppose in the year 2018, the labor...

Consider a country with 500 adult population in 2018. Suppose in the year 2018, the labor force

participation rate is unknown but the employment rate is 60%. Suppose further that in the year 2019,

the labor force participation is 75%, and the employment rate is 80%. If the labor force participation

rate increased from 2018 to 2019 and the total number of people unemployed remained the same, what

must be true of the total adult population size in 2019?

(a) The total adult population size is more than 1000 in 2019.

(b) The total adult population size is less than 1000 in 2019.

(c) The total adult population size increased.

(d) The total adult population size decreased.

Solutions

Expert Solution

Labor force participation Rate = (No. of people in labor force / Total working age population)*100

Employment rate = (No. of people employed / No. of people in labor force)*100

In 2018:

Employment rate = 60%

Let labor force participation rate be x%

In 2019:

Employment rate = 80%

Labor force participation rate = 75%

Multiplying (1) and (2)

No. of unemployed people same in 2018 and 2019.

Given,  labor force participation rate increased from 2018 to 2019 => x < 0.75

=> Working age population in 2019 < 1000

Correct Ans - B

Rahul Sunny answered 1 year ago
Next > < Previous

Related Solutions

Employment status 2018 2019 Adult population 257,791 259,175      Labor force 162,075 163,539            Participation rate...
Employment status 2018 2019 Adult population 257,791 259,175      Labor force 162,075 163,539            Participation rate 62.9%            Employed 155,761 157,538            Unemployed 6,314                 Unemployment rate 3.9% Duration of unemployment Less than 5 weeks 2,170 2,086 5 to 14 weeks 1,876 1,789 15 to 26 weeks 2,268 2,126 27 weeks and over 1,350 1,266 Part-time due to economy 3,564 3,207 Part-time due to choice 22,072 22,175 Discouraged workers 423 382 Calculate the participation rate for 2019. Calculate the unemployment...
Consider the Solow growth model with population growth and growth in the efficiency of labor. Suppose...
Consider the Solow growth model with population growth and growth in the efficiency of labor. Suppose that 2 countries A and B have the same production function given by Yt = Ktα(LtEt)1−α, the same rate of growth of E (g), the same depreciation rate of physical capital (δ) and the same saving rate s. The initial level of E, E0, is lower in country A than in country B. (a) Compare the steady-state levels of output per effective worker of...
Suppose that a Home country is a labor-abundant country, and produces bananas (labor intensive) and computers...
Suppose that a Home country is a labor-abundant country, and produces bananas (labor intensive) and computers (capital intensive). Given all the theory and assumptions of the Heckscher-Ohlin model holds true, answer the following questions: A). Draw and explain in a graph the free trade equilibrium for Home Country (Remember PPFs? Make sure to clearly indicate the production point, the consumption point, and the quantity of exports and imports). B). In the graph drawn above for question (a), show the effects...
Suppose that a Home country is a labor-abundant country, and produces bananas (labor intensive) and computers...
Suppose that a Home country is a labor-abundant country, and produces bananas (labor intensive) and computers (capital intensive). Given all the theory and assumptions of the Heckscher-Ohlin model holds true, answer the following questions: A). Draw and explain in a graph the free trade equilibrium for Home Country (Remember PPFs? ! Make sure to clearly indicate the production point, the consumption point, and the quantity of exports and imports). B). In the graph drawn above for question (a), show the...
Suppose a country experiences a significant immigration of labor. Further, this country produces both labor-intensive and...
Suppose a country experiences a significant immigration of labor. Further, this country produces both labor-intensive and capital intensive goods. According to the Rybczynski theorem, what changes in the production of the two type of goods should we anticipate because of the labor immigration? Be sure to use the Rybczynski theorem to answer the question.
Q1. Consider the population of adult females resident in Melbourne. Our focus is on the population...
Q1. Consider the population of adult females resident in Melbourne. Our focus is on the population mean height. Assume we know ? (population standard deviation) is 25, but we do not know the population mean, µ. We take a sample of adult females resident in Melbourne (n=100) and calculate the sample mean height as 70 cm. Write down the distribution of X, female height. Write down the distribution of X. Are you relying on any theorems in your answer? If...
Consider the population of adult females resident in Melbourne. Our focus is on the population mean...
Consider the population of adult females resident in Melbourne. Our focus is on the population mean height. Assume we know ? (population standard deviation) is 25, but we do not know the population mean, µ. We take a sample of adult females resident in Melbourne (n=100) and calculate the sample mean height as 70 cm. Write down the distribution of X, female height. Write down the distribution of . Are you relying on any theorems in your answer? If yes...
Q1. Consider the population of adult females resident in Melbourne. Our focus is on the population...
Q1. Consider the population of adult females resident in Melbourne. Our focus is on the population mean height. Assume we know ? (population standard deviation) is 25, but we do not know the population mean, µ. We take a sample of adult females resident in Melbourne (n=100) and calculate the sample mean height as 70 cm. i) Write down the distribution of X, female height. ii) Write down the distribution of Are you relying on any theorems in your answer?...
Suppose there are two countries (a capital-abundant country and a labor-abundant country) and two goods (labor-intensive...
Suppose there are two countries (a capital-abundant country and a labor-abundant country) and two goods (labor-intensive good X and capital-intensive good Y). The two countries have identical demand for the two goods and are considering forming a free trade agreement. However, while this agreement received support from most voters in country A, many voters in country B were concerned that the agreement will likely widen income inequality in country B. Please identify which country is likely labor abundant and which...
if a country had an adult population (those 15 years of age and over) of 200...
if a country had an adult population (those 15 years of age and over) of 200 million and a labor force of 160 million, and 140 million people were employed, what would be its labor force participation rate and its unemployment rate? b. If 20 million new jobs were created in the country and it attracted to the labor force 20 million of the people who were previously not in the labour force, what would be its new labour force...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT