Q1. The table below reports the unemployment rate, labor force participation rate, and (working-age) population for the United States in January 2008, 2011, and 2016. Using the data, answer the following questions. a. What was the size of the labor force at the start of each year? b. How many people were officially unemployed at the start of each year? c. What about these numbers may cause some concern even though the unemploy- ment rate to start 2016 was a notch below the unemployment rate in 2008 as the economy was entering the Great Recession? Q2 Unemployment Rate Labor Force Participation Rate Working-age Population 2008 5.0% 66.2% 234m Q3 2011 9.1% 64.2% 238m 2016 4.9% 62.7% 251m per hour for Tom earns $15 per hour for up to 40 hours of work each week and $30 every hour in excess of 40. Tom also faces a 20 percent tax rate, pays $4 per hour in child care expenses for each hour he works, and receives $80 in child support payments each week. There are 110 (non-sleeping) hours in the week. Graph Tom's weekly budget line. Cindy gains utility from consumption C and leisure L. The most leisure she can consume in any given week is 110 hours. Her utility function is U(C, L) = C x L This functional form implies that Cindy's marginal rate of substitution is C/L. Cindy receives $660 each week from her great-grandmother-regardless of how much Cindy works. What is Cindy's reservation wage?

The table below reports the unemployment rate, labor force participation rate, and (working-age) population for the United States in January 2008, 2011, and 2016. Using the data, answer the following questions. a. What was the size of the labor force at the start of each year? b. How many people were officially unemployed at the start of each year? c. What about these numbers may cause some concern even though the unemployment rate to start 2016 was a notch below the unemployment rate in 2008 as the anannmv was entering the Great Recession? Q2 Tom earns $15 per hour for up to 40 hours of work each week and $30 per hour for every hour in excess of 40 . Tom also faces a 20 percent tax rate, pays $4 per hour in child care expenses for each hour he works, and receives $80 in child support payments each week. There are 110 (non-sleeping) hours in the week. Graph Tom's weekly budget line. Q3 Cindy gains utility from consumption C and leisure L. The most leisure she can consume in any given week is 110 hours. Her utility function is U(C,L)=CL This functional form implies that Cindy's marginal rate of substitution is C/L. Cindy receives $660 each week from her great-grandmother-regardless of how much Cindy works. What is Cindy's reservation wage