1. The following is based on an American drama series, Lost, which was quite popular about 15 years ago. (Spoiler alert if you plan to watch it!) The survivors of a plane crash landed on an island. There were 40 of them. With no sign of rescue, they started organizing a small economy on the island. In the rst 30 days (Period 1], 38 of them were available to work (the two not available were Walt, who was under 16, and Claire, who was in her twenties and was pregnant]. Among these 38 people, some of them were like James who was anti-social and refused to workonly 30 out of the 38 people were actively looking for an assignment.1 The leader on the island, Jack, could only nd jobs for 29 people, and the remaining 10 people were left idle. In the next 30 days (Period 2}, the following happened: or The group discovered that there was another group of survivors staying on the (a) (b) (C) (d) other side of the island led by Ana. There were 10 of them, and all of them were eligible and willing to work. They joined Jack's group. As the exploration of the island expanded, Jack managed to nd jobs for all 10 of them. Walt turned 16 and Claire delivered her baby, Aaron. Walt and Claire became available to work. Indeed, they were also willing to work, and Jack assigned Walt and Claire to push a button in a hatch they discovered on the island. James got along better with others and joined the work force. However, because of some personal reason related to their common friend, Kate, Jack did not nd him a job. James then was looking for other opportunity, but he had no luck yet. Hurley, who did not have an assignment in Period 1 (though he was looking for one), nally found a joblooking after the food found in the hatch. Shannon, who was working in Period 1, was unfortunately killed in an accident. Charles, who was also working in Period 1, picked up his old bad habit and was red by Jack. He was so discouraged that he did not attempt to find another job in Period 2 and focused his effort on kicking his habit. Calculate the laborforce participation rate on the island in Period 1. Calculate the unemployment rate on the island in Period 1. Calculate the labor-force participation rate on the island in Period 2. Calculate the unemployment rate on the island in Period 2. 1Pregnancy does not necessarily make a person not available to work. It is a choice. In this example, Claire chooses not to be available to work, much like those who refused to work. In reality, it will also depend on the regulation of a country and the stage of the pregnancy