Question

Consider a small economy composed of six people: Yakov, Ana, Charles, Dina, Juanita, and Gilberto. Each person's employment status is described in the following table.
Based on the criteria used by the Bureau of Labor Statistics (BLS), identify each person’s status as Employed, Unemployed, "Not in the labor force" if not in the civilian labor force but still part of the adult population, or "Not in the adult population" if not in the civilian adult population.

Person Status
A. Yakov is a 20-year-old professional tennis player. When he's not competing, he works as a coach at a local tennis club.
B. Ana is a 42-year-old autoworker who was just laid off by her employer. She is trying to find any kind of job to help make ends meet.
C. Charles is a 41-year-old graphic designer who is taking 2 years off from work to care for his small daughter.
D. Juanita is a 29-year-old who lost her job as an associate producer for a radio station. After spending a few weeks out of work and interviewing for several other positions, she gave up on her job search and decided to go back to grad school. She made that decision a few months ago.
E. Gilberto is a famous novelist. He is spending the summer at his lake house in upstate New York, doing a little writing each day but mostly spending his time gardening and reading.
F. Dina is a 10-year-old student at Southside Middle School. She baby-sits her younger sister and does other chores for which her parents give her an allowance of $20 per week.

There are status = Employed / Not in the labor force / Not in the adult population / Unemployed

Complete the right half of the following equation to reflect the labor force participation rate reported by the BLS.

Answer 1

Solution and Explanation:

The status of each of the given case is as follows:

person            Status                        Explanation

A       Employed                      He is already working as a coach

B      Unemployed               Been laid off and also looking for a job

C      Not in the labor force  Since he was willingly off from the work and he is not actively looking for another work

D Not in the labor force          Since she is not actively looking for another work.

E        Employed                          As he is working on novel

F Not in the adult population     Since he is 10- year old and is also a student    

Labor force participation = Number of labor force divided by Adult population   = 3 divided by 5 = 60 percent

Thus, the option D is correct answer.

Unemployment rate = Number of unemployed divided by labor force

= 1 divided by 3 = 33.33 percent

Therefore, the correct option is A option.