1. Illustrate and explain the labour demand curve. 2. Government officials find it useful to measure the nation's economic health. The unemployment rate is currently used as a major indicator of the relative strength of the labour market. Explain whether the unemployment rate overstates or understates true unemployment. 3. The Seva Island has hired you as an international consultant to analyse labour market data to enable them formulate relevant labour policies. Seva Island has a population size of 6.6 million persons of which 2.5 million are in paid job. Of the 4.1 million persons not working, 1.3 million persons are underaged or retired, 100,000 persons are institutionalised, 400,000 persons have stopped looking for work because they believed there are no jobs for them, and the rest of the persons not working are actively seeking for job. Define and determine the following labour market indicators: a. size of the economically active b. size of the economically inactive c. working-age-population d. unemployment rate e. labour force participation rate f. employment-to-population ratio