If the labor force consists of 90 full-time workers, 10 part-time, workers and the number of...

Question:

If the labor force consists of 90 full-time workers, 10 part-time, workers and the number of people who are looking for jobs but cannot find them is 9, the unemployment rate can be represented by _____

A. {eq}\frac{9}{90} {/eq}

B. {eq}\frac{9}{9 + 90 + 10} {/eq}

C. {eq}\frac{90 + 10}{9} {/eq}

D. {eq}\frac{9 + 10}{90 + 10} {/eq}

Which of the following people would NOT be included among the unemployed?

A. A construction worker laid off because of a slowdown in house building

B. A young mother on welfare because her husband has left her and she must stay home to take care of her children

C. A recent high school graduate who has quit his first job as a stock clerk in a grocery store in order to look for a better job

D. A recent college graduate who has not yet found a job

Unemployment

Unemployment is a measure watched closely by government policymakers because changes in unemployment indicate the economy's health. Changes in fiscal or monetary policy can decrease the unemployment rate.

Answer and Explanation: 1


The answer is the unemployment rate is represented by B. {eq}\frac{9}{9 + 90 + 10} {/eq} .

The labor force includes everyone who is working full or part-time and those people who are looking for work. Therefore unemployment is this example is

{eq}\frac{9}{9 + 90 + 10} \approx{8.26\%} {/eq}


The answer is that the person not included among the unemployed is B., a young mother on welfare because her husband left her, and she must stay at home to take care of her children.

To be considered unemployed, one must be actively looking for work. In answers A., C., and D., each person is looking for a job. The young mother is not looking for work and is not considered unemployed.


Learn more about this topic:

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What is Unemployment? - Definition, Causes & Effects

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Chapter 6 / Lesson 7
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Explore the concept of unemployment. Learn the definition of unemployment and understand its different effects, and discover the various reasons for unemployment.


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