revision questions chapter 21 pt3

Question 1

> under 16: 50 mill
working full-time: 90 mill
working part time: 30 mill
between age of 16 and retirement age: 165
unemployed: 5

using the data in the above table, the unemployment rate is…

Answer 1

= 4.0%
unemployed / total labour force (employed, unemployed and looking for work) x100
5 / (90+30+5) = 0.04
0.04 x 100= 4%

Question 2

> Total population: 246
Working-age population: 207
Workforce: 139
Employed: 133
Unemployed: 6

using the information in the above table, the unemployment rate is…

Answer 2

4.3%
unemployed / workforce
6 / 139 x100= 4.3%

(when in the table it says workforce, that includes employed, unemployed and looking for work so just use that. on charts where it doesn’t say workforce you have to add it up yourself)

(working age population includes those in the workforce and not in the workforce)

Question 3

what happens to cyclical unemployment during economic expansion

Answer 3

cyclical unemployment decreases

Question 4

Based on the following data for the country of Tiny Town, the measured unemployment rate equals
Population = 100
Workforce = 80
Number of employed persons = 70
Number of discouraged workers = 5

Answer 4

workforce=80, employed=10so unemployed= 80-70= 10 mill unemployed
10 / 80 x100= 12.5

Question 5

what happens when the unemployment rate is below the natural rate of unemployment,

Answer 5

real GDP is greater than potential GDP

Question 6

If the economy enters an expansion

Answer 6

cyclical unemployment decreases.

Question 7

Total population 2600
Working-age population 2,000
Economically inactive 500
Employed 1,300

Using the information in the table above, calculate the employment rate

Answer 7

employed / working age population
1300 / 2000 x100 = 65%

Question 8

Discouraged workers 15
Unemployed workers 40
Employed workers 100
Population (over 16 years and less than retirement) 225

In the above table, the economic activity rate is…

Answer 8

economic activity rate= total labour force / population x100
140 / 225 x100= 62%

(remember that discouraged workers are people that are not looking for work because they believe there is nothing available for them)

Question 9

Job leavers are people who

Answer 9

quit a job to look for something better