ECON 272
Out of Class Practice Problem on Employment, Labor Force, Unemployment Rates
The following is information regarding Bobville’s economy:
|
TOTAL Population: |
600 |
|
Employed: |
270 |
|
Unemployed: |
70 |
|
Not in the Labor Force: |
110 |
|
Under Age 16 or in the Military or in an Institution: |
150 |
1. Given the data in the table above, what is the labor force participation rate? (%)
Answer (always show all calculations):
2. Given the data in the table above, what is the unemployment rate? (%)
Answer (always show all calculations):
3. Given the data in the table above, what is the employment rate (or employment/population ratio)? (%)
Answer (always show all calculations):
4. Assume 20 people went from the “unemployed” category to the “not in the labor force” category due to them being “discouraged” (all other things the same) – what would the unemployment rate be now?
5. Given your answer to #2 above, do you think Bobville is at full employment? Explain.