8/3/2019 Macro ICA Ch10 Part1

1/3

Name: ______________________________________________ Macroeconomics Dr. Sauer

Unemployment: ch 10 (part1)

1. The following two charts show unemployment rates for workers age 25 and older. The first chart is

for workers who have some college, but not a bachelors degree. The second chart is for workers with atleast a bachelors degree.

Make some observations on the differences you notice. How does the level of education relate to

unemployment?

2. In the Denver area in August 2010, there were 1,268,700 employed people and 112,200 unemployed

people. In Colorado in August 2010, there were 2,440,000 employed people and 216,500 unemployedpeople.

a. Calculate Denvers labor force and Colorados labor force.

b. Calculate Denvers unemployment rate and Colorados unemployment rate.

8/3/2019 Macro ICA Ch10 Part1

2/3

3. The following tables contain employment data for US men and women separately.

Men (thousands) (thousands) (thousands) Women (thousands) (thousands) (thousands)

adult

population

in labor

force unemployed

adult

population

in labor

force unemployed

1950 46,663 41,129 2,349 1950 49,771 16,285 1,030

1960 50,529 43,563 1,926 1960 56,807 20,689 1,003

1970 56,576 46,842 1,188 1970 64,871 27,954 1,046

1980 70,538 56,225 2,724 1980 79,385 40,747 2,380

1990 82,499 64,805 3,063 1990 91,148 52,925 2,489

2000 93,203 71,772 2,353 2000 102,205 62,135 2,293

2010 105,998 78,386 7,861 2010 113,796 68,958 5,409

Calculate the unemployment rate and labor force participation rate for men and women for each year.

Men Women

year

Unemployment

rate

Labor Force

Participation

Rate

Unemployment

rate

Labor Force

Participation

Rate

1950

1960

1970

1980

1990

2000

2010

Now plot your answers on the graphs below, in a line graph format. (That is, plot each point and then

connect the points you will have one line for men and one line for women on each graph.)

Unemployment Rate Labor Force Participation Rate

1950 1960 1970 1980 1990 2000 2010 1950 1960 1970 1980 1990 2000 2010

Comment on the trends you observe for men and women in the labor market.

8/3/2019 Macro ICA Ch10 Part1

3/3

4. Classify each of the following people as Employed (E), Unemployed (U) or Not in the Labor Force(N).

a. Steve worked 40 hours last week in a music supply store.

b. Last week, Elizabeth worked 10 hours as a computer programmer for the National Video Company

and attended night classes at the local college. She would prefer a full-time job.

c. Roger lost his job at the R-gone Manufacturing Company. Since then he has been trying to find a jobat other local factories.

d. Linda is a homemaker. Last week she was occupied with her normal household chores. She neither

held a job nor looked for a job.

e. Lindas father is unable to work.

f. Scott has a Ph.D. He works full-time but does not like his job as a dishwasher. He has applied for jobswith three companies and five universities. As soon as he gets an offer, he will quit his current job.

g. Mary-Helen has been out of work for a full year. She would take a job if it was offered, but no localcompanies are hiring. The last time she looked for a job was 2 months ago.