ECON 101 HW CENGAGE (1).docx - 1 Measuring employment...

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1. Measuring employment, unemployment, and labor force participationConsider a small economy composed of six people: Dmitri, Frances, Jake, Latasha, Rosa, and Nick. Eachperson's employment status is described in the following table.Based on the criteria used by the Bureau of Labor Statistics (BLS), identify each person’s status as employed, unemployed, “not in the labor force” (if not in the civilian labor force but still part of the adult population), or “not in the adult population” if not in the civilian adult population.PersonStatusDmitri is a 43-year-old autoworker who was laid off from his job 6 months ago. He is frustrated with his inability to find a new full-time position. Last week, hetook a part-time job but was given only 3 hours of work.Employed Frances is a 25-year-old recent college graduate. She did not work for pay last week, but she had two job interviews.Unemployed Jake is a 37-year-old graphic designer who is taking 2 years off from work to care for his small daughter.Not in the labor force Rosa is a 31-year-old science teacher who taught at West Valley Middle School last year. Due to budget cuts, she was laid off at the end of the school year. It's the summer now, and after a few weeks of vacation with her family, she is looking for a part-time job as a tutor.Unemployed Nick is a 20-year-old American Studies major at the University of Tennessee. It's summer now, and he is working as a lifeguard in Mobile, Alabama.Employed Latasha is a 11-year-old student at Southside Middle School. She babysits her younger sister and does other chores, so her parents give her an allowance of $20 perweek.Not in the adult populationPoints:1 / 1Close Explanation
Explanation:The BLS considers a person to be unemployed if he or she is in the adult population, did not work for pay in the previous week, and has actively looked for work during the preceding 4 weeks. By this definition, the BLS classifies Frances and Rosa as unemployed.Anyone in the adult population who worked for pay in the last week, even if unsatisfied with his or her job, is considered employed. By this definition, the BLS classifies Dmitri and Nick as employed.Because Jake is not actively seeking employment, he is not considered part of the labor force. Note that not being in the labor force is different from being unemployed. Once people leave the labor force,they are not counted when calculating the unemployment rate.Because Latasha is under the age of 16, she is not considered part of the adult population.

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