2. For each of the following scenarios, determine whether the person is official

Question

2. For each of the following scenarios, determine whether the person is officially considered employed (E), unemployed (U), or are not part of the labor force (NLF). If these are the only 7 people in the economy determine the unemployment rate and the labor force participation rate. Show your work by indicating the values in the numerator and denominator. Report all values to 2 decimal places (X.XX). A. Steve worked 48 hours last week in an office supply store. B. Last week, Elizabet attended night classes at the local college. She would prefer a full-time job. h worked 12 hours as a computer programmer for the National Video Company and C. Roger lost his job at the R-gone Manufacturing Company. Since then he has been trying to find a job at other D,. Linda is a homemaker. Last week she was occupied with her normal household chores. She neither held a local factories. job nor looked for a job. E. Linda's father, due to a disability, is unable to work. F. Scott has a Ph.D (not in economics). He works full-time, but does not like his job as a dishwasher. He has applied for jobs with three companies and five universities. As soon as he gets an offer, he will quit his current job. G. Mary-Helen has been out of work for a full year. She would take a job if it was offered, but no local companies are hiring. She is not actively searching for work. LFPR =

Explanation / Answer

here we see

A = Employed

B = Employed

C = Unemployed

D = NLF because she is not actively looking for a job

E = NLF because he is not in a position ot be employed

F = Employed

G = NLF because she is not actively searching for a job

so now total labor force = number of employed + number of unemployed = 3 +1 =4

so UNEMPLOYEMENT RATE = unemployed/labor force = 1/4 = 0.25 = 25%

LABOR FORCE PARTICIPATION RATE = labor force/population = 4/7 = 0.57 = 57%

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