) By definition, the labor force participation rate is
A) the percentage of institutionalized working-age individuals who are employed or seeking employment.
B) the percentage of noninstitutionalized working-age individuals who are employed or seeking employment.
C) the annual rate of growth in the number of people who are either employed or searching for available jobs.
D) the annual rate of growth in the number of people who are unemployed and searching for available government-provided unemployment benefits.
B) the percentage of noninstitutionalized working-age individuals who are employed or seeking employment.
Suppose the population of El Campo is 120,000. Of the population 16 years and older, 50,000 are employed, 10,000 have never worked and are not looking for work, 5,000 are not working and are looking for work, and 15,000 are retired and not looking for work. The labor force equals
A) 50,000.
B) 55,000.
C) 65,000.
D) 80,000.
C) 65,000.
The labor force includes those who are employed or actively seeking employment. In this case, that would be the 50,000 employed individuals and the 5,000 who are not working but are actively looking for work. Therefore, the labor force is 50,000+5,000=55,000.
The population is 1,000 million, the labor force is 700 million, and the number of unemployed is 35 million. What is the unemployment rate?
A) 7 percent
B) 5 percent
C) 10 percent
D) 3.5 percent
D) 3.5 percent
The unemployment rate is the number of unemployed individuals divided by the total labor force, expressed as a percentage.
So, unemployment rate = (number of unemployed / labor force) x 100
Plugging in the numbers:
unemployment rate = (35 million / 700 million) x 100
unemployment rate = 0.05 x 100
unemployment rate = 5%
Therefore, the correct answer is option B) 5 percent.
(Note: The question has a typo stating the population to be "1,000 million" instead of "1 billion".)
The correct answer is B) the percentage of noninstitutionalized working-age individuals who are employed or seeking employment.
To determine the correct answer to this question, we can break down each option and determine which one matches the definition of the labor force participation rate.
A) The percentage of institutionalized working-age individuals who are employed or seeking employment.
This option is not accurate because the labor force participation rate includes both institutionalized and noninstitutionalized individuals.
B) The percentage of noninstitutionalized working-age individuals who are employed or seeking employment.
This option is the most accurate definition of the labor force participation rate. It refers to the percentage of working-age individuals who are not institutionalized and are either employed or actively looking for work.
C) The annual rate of growth in the number of people who are either employed or searching for available jobs.
This option describes the job growth rate rather than the labor force participation rate. The labor force participation rate represents the percentage of people participating in the labor force, not the rate of growth.
D) The annual rate of growth in the number of people who are unemployed and searching for available government-provided unemployment benefits.
This option describes the unemployment growth rate, which is different from the labor force participation rate. The labor force participation rate includes both employed and unemployed individuals who are actively seeking employment, regardless of whether they receive unemployment benefits.
Therefore, the correct answer is B) the percentage of noninstitutionalized working-age individuals who are employed or seeking employment.