Question 1

Hometown,NB,has a labour force of 78 567 persons and employment of 74 382.What is the unemployment rate for the city?

Accepted Answer

The unemployment rate is calculated as ((Labour force - Employment) / Labour force) * 100. For Hometown, NB, it is ((78,567 - 74,382) / 78,567) * 100 = 5.3 percent.

Question 2

Billy loses his job as a road construction worker and cannot find another position with equivalent pay and benefits.As a result,he is still checking the want ads and reporting to the unemployment office on a weekly basis.According to economists,what is he considered to be?

Accepted Answer

Billy is actively seeking employment but cannot find a job with equivalent pay and benefits, therefore he is considered unemployed. Option A (discouraged worker) typically refers to someone who has given up the search for employment, Option B (out of the labour force) refers to individuals who are not seeking employment, and Option C (underemployed) refers to individuals who are employed but in positions that are below their qualifications or in which they are not working full-time.

Question 3

What is the unemployment rate in a city with a labour force of 359 500 persons where 320 000 persons are employed?

Accepted Answer

The answer of What is the unemployment rate in a...

Question 4

Which of the following best describes the presence of discouraged workers?

Accepted Answer

Discouraged workers are those who have given up on finding a job and are no longer actively seeking employment. They are not included in the official count of the unemployed because they are not currently looking for work. However, they are still considered part of the potential labor force and their presence tends to understate the true level of unemployment because they are not included in the unemployment rate calculation.

Question 5

After looking for a job for more than eight months,Kyle has become frustrated and stopped looking.How do economists view Kyle?

Accepted Answer

Kyle is considered a discouraged worker, as he has given up looking for a job and is therefore not included in the unemployment rate despite still being willing to work. This type of unemployment is called "discouraged worker" unemployment.

Question 6

Which of the following factors might cause the unemployment rate to underestimate the true extent of unemployment?

Accepted Answer

When people become discouraged and stop looking for work, they are no longer counted as unemployed in the official unemployment rate. This means that the unemployment rate can underestimate the true extent of unemployment if a significant number of people are not included in the calculation.

Question 7

Which of the following factors might cause the unemployment rate to underestimate the true extent of unemployment?

Accepted Answer

The unemployment rate may underestimate true unemployment because it does not account for underemployment, where part-time workers desire full-time work but cannot find it.

Question 8

What do economists consider persons who do NOT hold jobs,but are actively seeking work?

Accepted Answer

Economists consider persons who do not hold jobs but are actively seeking work as unemployed.

Question 9

Which of the following groups of people would be included in the official unemployment rate?

Accepted Answer

The official unemployment rate only includes workers who are actively seeking employment but are unable to find a job. Workers temporarily laid off are included in this category as they are considered unemployed even though they have a job to return to. Discouraged workers, underemployed workers, and part-time workers may be considered in alternative measures of unemployment, but are not included in the official unemployment rate.

Question 10

If the unemployment rate is 6 percent and the number of persons unemployed is 6 million,how many people are employed?

Accepted Answer

The formula for calculating the total labor force is:
Labor Force = Employed + Unemployed 
We're given that the unemployment rate is 6 percent, which means that 6 percent of the labor force is unemployed.
So, we can write:
6% of Labor Force = 6 million
To solve for the total labor force, we need to divide both sides of the equation by 0.06 (which is the same as multiplying by 100/6 or 16.67):
Total Labor Force = 6 million / 0.06
Total Labor Force = 100 million
Now that we know the total labor force is 100 million, and we know that 6 million are unemployed, we can calculate how many people are employed:
Employed = Total Labor Force - Unemployed
Employed = 100 million - 6 million
Employed = 94 million

Question 11

Under what circumstances might the unemployment rate overestimate the true extent of unemployment?

Accepted Answer

The answer of Under what circumstances might the unemployment rate...

Question 12

St.Somewhere has a working age population of 20 million.Of those,11 million are employed and 1 million are unemployed.What is the unemployment rate?

Accepted Answer

The unemployment rate can be calculated by dividing the number of unemployed individuals by the total working age population and then multiplying by 100. So, the unemployment rate in St. Somewhere is (1 million / 12 million) * 100 = 8.3%. Thus, option D is the correct answer.

Question 13

Which of the following is a discouraged worker?

Accepted Answer

A discouraged worker is someone who has given up searching for work after being unsuccessful in finding employment. Option A is a person who is voluntarily quitting work for education, option B is a skilled worker who has accepted an unskilled job, and option C is a part-time worker who wants to work more hours, none of which fit the definition of a discouraged worker.

Question 14

In November 2008,the labour force in Centraltown was 14 800.There were 14 483 persons employed.What was the local unemployment rate?

Accepted Answer

The answer of In November 2008,the labour force in Centraltown...

Question 15

If the population older than 16 years of age equals 150 million,the labour force equals 110 million,and the total number of persons employed equals 98 million,then what is the unemployment rate?

Accepted Answer

The unemployment rate can be calculated as follows:

Unemployment Rate = (Number of Unemployed / Labour Force) x 100

Number of Unemployed = Labour Force - Number Employed

Number of Unemployed = 110 million - 98 million

Number of Unemployed = 12 million

Therefore,

Unemployment Rate = (12 million / 110 million) x 100

Unemployment Rate = 10.9%

So, the best choice is B, which represents the correct answer of 10.9% unemployment rate.

Question 16

What does an economist consider a university student who is enrolled in school full-time and NOT seeking employment?

Accepted Answer

An economist would consider a university student who is enrolled in school full-time and not seeking employment as "out of the labour force." This is because the student is not actively seeking work and is not available for work during regular working hours due to their full-time education commitment.

Question 17

Which of the following will occur if a large number of individuals file unemployment claims and work in the underground economy?

Accepted Answer

The answer of Which of the following will occur if...

Question 18

Which of the following individuals is considered officially unemployed?

Accepted Answer

An individual who quits their job to look for a better paying job is considered unemployed because they are actively seeking employment.

Question 19

Cody has recently graduated from university with an MA in economics.Having been unsuccessful in getting a job in Toronto's financial district,he accepts a job at Home Depot in Kingston.How does Statistics Canada view Cody?

Accepted Answer

The answer of Cody has recently graduated from university with...

Question 20

What is the unemployment rate in a town in which 65 400 persons are employed and 11 000 are unemployed?

Accepted Answer

To find the unemployment rate, we need to divide the number of unemployed people by the total labor force (employed + unemployed) and then multiply by 100 to get a percentage. 
Unemployment rate = (11,000 / (65,400 + 11,000)) x 100% = 14.4% 
Therefore, the answer is B) 14.4 percent.

Quiz 5: Introduction to the Macroeconomy

Hometown,NB,has a labour force of 78 567 persons and employment of 74 382.What is the unemployment rate for the city?

Billy loses his job as a road construction worker and cannot find another position with equivalent pay and benefits.As a result,he is still checking the want ads and reporting to the unemployment office on a weekly basis.According to economists,what is he considered to be?

What is the unemployment rate in a city with a labour force of 359 500 persons where 320 000 persons are employed?

Which of the following best describes the presence of discouraged workers?

After looking for a job for more than eight months,Kyle has become frustrated and stopped looking.How do economists view Kyle?

Which of the following factors might cause the unemployment rate to underestimate the true extent of unemployment?

Which of the following factors might cause the unemployment rate to underestimate the true extent of unemployment?

What do economists consider persons who do NOT hold jobs,but are actively seeking work?

Which of the following groups of people would be included in the official unemployment rate?

If the unemployment rate is 6 percent and the number of persons unemployed is 6 million,how many people are employed?

Under what circumstances might the unemployment rate overestimate the true extent of unemployment?

St.Somewhere has a working age population of 20 million.Of those,11 million are employed and 1 million are unemployed.What is the unemployment rate?

Which of the following is a discouraged worker?

In November 2008,the labour force in Centraltown was 14 800.There were 14 483 persons employed.What was the local unemployment rate?

If the population older than 16 years of age equals 150 million,the labour force equals 110 million,and the total number of persons employed equals 98 million,then what is the unemployment rate?

What does an economist consider a university student who is enrolled in school full-time and NOT seeking employment?

Which of the following will occur if a large number of individuals file unemployment claims and work in the underground economy?

Which of the following individuals is considered officially unemployed?

Cody has recently graduated from university with an MA in economics.Having been unsuccessful in getting a job in Toronto's financial district,he accepts a job at Home Depot in Kingston.How does Statistics Canada view Cody?

What is the unemployment rate in a town in which 65 400 persons are employed and 11 000 are unemployed?