Question
Consider the population of a small country, assuming that the number of people in each category is as follows: total population = 1,200 children under
Consider the population of a small country, assuming that the number of people in each category is as follows:
total population = 1,200
children under age 14 = 200
elderly retired people = 300
full-time adult students = 20
full-time homemakers = 30
people working full time for pay = 420
people working part time for pay = 120
people not working but seeking employment = 60
people not working but have given up seeking employment = 50
a. Calculate the labour force participation rate.
b. Calculate the unemployment rate.
c. In the above list, identify the discouraged worker category
d. State True or False: In presence of discouraged workers, the unemployment rate reported in part b of your answer is an understatement of the true unemployment rate. To support your answer, include the discouraged workers in your unemployment rate calculation and compare the result with part b answer.
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