Given the following: Given the following: population- 4,500,000 Less than 16 yea

Question

Given the following:

Given the following: population- 4,500,000

Less than 16 years old-500,000

unemployed but actively seeking work-100,000

philosophers---(non working) 50,000

house-husbands/housewives (non employed)-20,000

discouraged workers-10,000

people in institutions-30,000

full time students (non working)-100,000

full time workers-3,000,000

part time workers-690,000

Given the information in the questions above, what is the unemployment rate?

A) 7 .1%

B) 2.6 %

C) 2 .7%

D) 9.2%

Ms. Krupsky has shorthand and typing skills and still finds herself unemployed. In today's economy, Ms. Krupsky is an example of what type of unemployment? O frictional unemployment frictional unemployment Ostructural unemployment cyclical unemployment None of the above answers is correct.

Explanation / Answer

1. Krupsky seems to have structural unemployment. Structural employment is one where one is unemployed because of the technological changes rather than mere forces of demand and supply. She is having typing skills still she is not able to get the employment because of the changes that are happening to the technology. Now computers have become more automated, thus reducing the need for the typing experts.

2. Total Population = 4,500,000

We will look at the active labour force, so for calculating the unemployment rate in the economy, we will simply reduce the no. of children who are of age less than 16, assuming they do not form the part of the labour force.

Labour Force = 4,500,000 - 500,000 - 100,000 = 3,900,000

Employed people = Full time workers + Part time workers + Philosophers = 3,000,000 + 690,000+ 50,000 = 3,740,000

So unemployment Rate = 3,740,000 / 3,900,000

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