MACRO ECON 202 HW 2 (myeconlab)
Which of the following formulas does the Bureau of Labor Statistics use to calculate the unemployment rate?
(# of unemployed/# in labor force) x 100
Which of the following is the correct formula for calculating the unemployment rate?
(#of unemployed/labor force) x 100
The United States is divided into ___ Federal Reserve Districts. The Federal Reserve Bank's Board of Governors consists of ___ members appointed by the president of the U.S. to 14-year, non-renewable terms. One of the board members is appointed to a ___ year, renewable term as the chairman.
12 7 4
Suppose an economy is given by the following: Population = 289 million Labor force = 181 million The number of people employed = 167.4 million The number of people unemployed = 13.6 million Given the information above, the unemployment rate is ___%.
7.5
Suppose an economy is given by: Population = 274 million Working-age population = 152 million Labor force = 109 million The number of people employed = 100 million The number of people unemployed = 9 million The labor force participation rate for this economy is ___%.
71.7
Why is the unemployment rate, as measured by the Bureau of Labor Statistics, an imperfect measure of the extent of joblessness in the economy?
All of the above. - It fails to account for illegal activities. - It does not account for inaccurate responses to the Current Population Survey. - Discouraged workers are not considered unemployed. - Underemployed people are considered employed.
The (FOMC) Federal Open Market Committee
All of the above. - determines the target federal funds rate and the direction of open market operation policies. - includes the Board of Governors and the presidents of the 12 Federal Reserve regional banks (though not all are voting members). - makes decisions that are voted on by all 7 members of the Board of Governors but only 5 of the 12 regional bank presidents.
Which groups tend to have above-average unemployment rates, and which groups tend to have below-average unemployment rates?
Black teenagers as a group have lower unemployment rates than white teenagers.
In August 2013, the working-age population of the United States was 245.9 million. The working-age population is divided into those in the labor force (155.5 million) and those not in the labor force (90.4 million). The labor force is divided into the employed (144.2 million) and the unemployed (11.3 million). Those not in the labor force are divided into those not available for work (84.1 million) and those available for work (6.3 million). Finally, those available for work but not in the labor force are divided into discouraged workers (0.9 million) and those currently not working for other reasons (5.4 million). Use this data to help determine which one of the following statements is true:
Both A and B above are true. A) The unemployment rate is (11.3 million/155.5 million) x 100 = 7.3 %. B) The labor force participation rate is (155.5 million/245.9 million) x 100 = 63.2 %.
The BLS uses the establishment survey to collect information on employment in the economy. Indicate one drawback of the establishment survey compared to the current population survey and indicate one advantage.
It does not include information about self-employed people. It is based on company payroll and not on unverifiable answers.
Since 1948, which of the following best describes the trend in the labor force participation rate?
It is decreasing for men and increasing for women.
Which one of the following depicts an accurate description of the household survey and the establishment survey?
The household survey interviews households and collects data that is used to measure the unemployment rate whereas the establishment survey interviews businesses and measures total employment in the economy.
___ is the percentage of the working-age population in the labor force.
The labor force participation rate
Use the graph to the right to help determine which of the following statements regarding the labor force participation rates of adult men and women since 1950 is false.
The labor force participation rates of adult men and adult women were equal in 1990.
Currently, the Bureau of Labor Statistics does not include homemakers in its employment and labor force totals. What would happen to the unemployment rate and the labor force participation rate
The unemployment rate would decrease and the labor force participation rate would increase.
How would it affect the unemployment rate if the Bureau of Labor Statistics counted as unemployed both (1) discouraged workers and (2) people who work part-time but would prefer to work full-time?
The unemployment rate would increase.
Suppose that you are available to go to work but have not looked for a job for at least the last four weeks because you believe that there aren't any jobs available. You would be counted as
a discouraged worker.
The Federal Reserve Bank of New York is always a voting member of the FOMC because
it carries out the policy directives of the FOMC.
All of the following are problems in measuring the unemployment rate except that
people on active military service are included as unemployed.
The unemployment rate
shows the percentage of the labor force that is considered unemployed.
Many economists prefer
the establishment survey because it is determined by actual payroll records rather than unverified answers.
The labor force participation rate is calculated by
the percentage of the working-age population that is in the labor force or (Labor force/Working - age population) x 100
When there are workers that drop out of the labor force, the official BLS measure of the unemployment rate ___ the true degree of unemployment.
understates
Two important trends in the labor force participation rates of adults aged 20 and over in the United States since 1948 are the _________ labor force participation rate of adult women and the __________ labor force participation rate of adult men.
rising; falling
