Social and Economic Statistics and Demography Module

1.1.12 Chapter Exercises

I. Choose the best Answer from the Given Alternatives
1. A series of numerical figures which show the relative position is called
a) Index no. b) relative no. c) absolute no. d) none
2. Index no. for the base period is always taken as
a) 200 b) 50 c) I d) 100
3. _________ play a very important part in the construction of index nos.
a) Weights b) classes c) estimations d) none
4. ________ is particularly suitable for the construction of index nos.
a) H.M. b) A.M. c) G.M. d) None
5. Index nos. show _________ changes rather than absolute amounts of change.
a) Relative b) Percentage c) both d) none
6. The ________ makes index nos. time-reversible.
a) A.M. b) G.M. c) H.M. d) None
7. Price relative is equal to
a) b). c) d)
8. Weighted G.M. of relative formula satisfy_______ test
a) Time Reversal Test b) Circular test
c) Factor Reversal Test d) none
9. Factor Reversal test is satisfied by
a) Fisher‘s Ideal Index b) Laspeyres Index
c) Paasches‘ Index d) none
10. ___________ is an extension of time reversal test
a) Factor Reversal Test b) Time Reversal Test
c) Circular Test d) none

11. The _______ of group indices given the General Index

a) H.M. b) G.M. c) A.M. d) None
12. Circular Test is one of the tests of
 Social and Economic Statistics and Demography Module

a) Index nos. b) Hypothesis c) both d) none

13. Index no. is equal to
a) Sum of price relatives b) average of the price relatives
c) Product of price relative d) none
14. Laspeyre‘s formula does not obey
a) Factor Reversal Test b) Time Reversal Test c) Circular Test d) none
15. A ratio or an average of ratios expressed as a percentage is called
a) a relative no. b) an absolute no. c) an index no. d) None
16. The value at the base time period serves as the standard point of comparison
a) False b) true c) both d) none
17. An index time series is a list of _______ nos. for two or more periods of time
a) index b) absolute c) relative d) none
18. Index nos. are often constructed from the
a) Frequency b) class c) sample d) none
19. ___________is a point of reference in comparing various data describing
individual behavior.
a) Sample b) Base period c) Estimation d) none
20. The ratio of price of single commodity in a given period to its price in another
period called the
(a) Base period b) Price ratio (c) relative price (d) none
Sum of all commodity prices in the current year x 100
21.
Sum of all commodity prices in the base year is
(a) Relative Price Index (b) Simple Aggregative Price Index (c)
both (d) none,
22. Chain index is equal to
a) Link relative of current year x chain index of the current year/ 100
b) Link relative of previous year x chain index of the current year/100
c) Link relative of current year x chain index of the previous year/100
d) Link relative of previous year x chain index of the previous year/100
23. P01 is the index for time
(a) 1 on 0 (b) 0 on 1 (c) I on 1 (d) 0 on 0

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24. P10 is the index for time

(a) 1 on 0 (b) 0 on 1 (c) 1 on 1 (d) 0 on 0
25. When the product of price index and the quantity index is equal to the
corresponding value index then
(a) Unit Test (b) Time Reversal Test (c) Factor Reversal Test (d) none holds
26. The formula should be independent of the unit in which or for which price and
quantities are quoted in
(a) Unit Test (b) Time Reversal Test (c) Factor Reversal Test (d) none
27. Laspeyre‘s method and Paasche‘s method do not satisfy
(a) Unit Test (b) Time Reversal Test (c) Factor Reversal Test (d) none
28. The purpose determines the type of index no. to use
(a) yes (b) no (c) may be (d) may not be
29. The index no. is a special type of average
(a) False (b) true (c) both (d) none
30. The choice of suitable base period is at best temporary solution
(a) True (b) false (c) both (d) none
31. Fisher‘s Ideal Formula for calculating index nos. satisfies the _______ tests
(a) Units Test (b) Factor Reversal Test` (c) both (d) none
32. Fisher‘s Ideal Formula dose not satisfy _________ test
(a) Unit test (b) Circular Test (c) Time Reversal Test (d) none
33. ____________________ satisfies circular test
a) G.M. of price relatives or the weighted aggregate with fixed weights
b) A.M. of price relatives or the weighted aggregate with fixed weights
c) H.M. of price relatives or the weighted aggregate with fixed weights d) none
34. Laspeyre‘s and Paasche‘s method _________ time reversal test
(a) satisfy (b) do not satisfy (c) are (d) are not
35. There is no such thing as unweighted index numbers
(a) false (b) true (c) both (d) none
36. Theoretically, G.M. is the best average in the construction of index nos. but in
practice.
mostly the A.M. is
used
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(a) false (b) true (c) both (d) none

37. Laspeyre‘s or Paasche‘s or the Fisher‘s ideal index do not satisfy
a) Time Reversal Test (b) Unit Test (c) Circular Test (d) none
38. ___________ is concerned with the measurement of price changes over a period of
years when it is desirable to shift the base
(a) Unit Test (b) Circular Test (c) Time Reversal Test (d) none
39. The test of shifting the base is called
(a) Unit Test (b) Time Reversal Test (c) Circular Test (d) none
originalindex
40. Shifted price Index = 100 .
Price Index of the year on which it has to be shifted
a) True b) false c) both d) none
42. The no. of test of Adequacy is a)2 b)5 c)3 d)4
43. We use price index numbers
(a) To measure and compare prices (b) to measure prices (c) to compare prices (d) none
44. Simple aggregate of quantities is a type of
(a) Quantity control (b) Quantity indices (c) both (d) none
45. Each of the following statements is either True or False write your choice of the answer
1 writing T for True
(a) Index Numbers are the signs and guideposts along the business highway that
indicae to the businessman how he should drive or manage.
(b) ―For Construction index number. The best method on theoretical ground is not th
best method from practical point of view‖.
(c) Weighting index numbers makes them less representative.
(d) Fisher‘s index number is not an ideal index number.
46. Each of the following statements is either True or False. Write your choice of the answer
by writing F for false.
(a) Geometric mean is the most appropriate average to be used for constructing an index
number.
(b) Weighted average of relatives and weighted aggregative methods render the same result.

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(c) ―Fisher‘s Ideal Index Number is a compromise between two well known indices — not a
right compromise, economically speaking‖.
(d) ―Like all statistical tools, index numbers must be used with great caution‖.
47. The best average for constructing an index numbers is
(a) Arithmetic Mean (b) Harmonic Mean (c) Geometric Mean (d) None of these.
48. The time reversal test is satisfied by
(a) Fisher‘s index number. (b) Paasche‘s index number
(c) Laspeyre‘s index number. (d) None of these.
49. The factor reversal test is satisfied by
(a) Simple aggregative index number. (b) Paasche‘s index number. (c) Laspeyre‘s index
number. (d) None
50. The circular test is satisfied by
(a) Fisher‘s index number. (b) Paasche‘s index number. (c) Laspeyre‘s index number. (d)
None of these.
51. Fisher‘s index number is based on
(a) The Arithmetic mean of Laspeyre‘s and Paasche‘s index numbers.
(b) The Median of Laspeyre‘s and Paasche‘s index numbers.
(c) the Mode of Laspeyre‘s and Paasche‘s index numbers. (d) None of these.
52. Paasche index is based on
(a) Base year quantities. (b) Current year quantities.
(c) Average of current and base year. (d) None of these
53. Fisher‘s ideal index number is
(a) The Median of Laspeyre‘s and Paasche‘s index number (b) The Arithmetic Mean of
Laspeyre‘s and Paasche‘s.
(c) The Geometric Mean of Laspeyre‘s and Paasche‘s
(d) None of these.
54. Price-relative is expressed in term of

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55. Paasehe‘s index number is expressed in terms of:

56. Cost of living Index number (C. L. I.) is expressed in terms of:

57. If the ratio between Laspeyre‘s index number Paasche‘s Index number is 28 : 27. Then
the Missing figure in the following table P is:

(a) 7 (b)4 (c)3 (d)9

58. Time reversal Test is satisfied by following index number formula is
(a) Laspeyre‘s Index number. (b) Simple Arithmetic Mean of price relative formula
(c) Marshall-Edge worth formula. (d) None of these.
59. If the prices of all commodities in a place have increased 1.25 times in comparison to
the base period, the index number of prices of that place is now
(a) 125 (b) 150 (c) 225 (d) None of these.
60. If the index number of prices at a place in 1994 is 250 with 1984 as base year, then the
prices have increased on average

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(a) 250% (b) 150% (c) 350% (d) None of these.

61. If the prices of all commodities in a place have decreased 35% over the base period
prices, then the index number of prices of that place is now
(a) 35 (b) 135 (c) 65 (d) None of these.
62. Link relative index number is expressed for period n is

63. Fisher‘s Ideal Index number is expressed in terms of:

64. Factor Reversal Test According to Fisher is

65. . Marshall Edge worth Index formula after interchange of p and q is impressed in terms
of:

True/False
1. The base period should be a normal period (T/F)
2. Bowley‘s index is G.M of Lasperey‘s and Paasche‘s index number.(T/F)
3. The circular test is an extension of time reversal test.(T/F)
4. The base year quantities are used as weights in Paasche‘s method.(T/F)
5. If with the rise of 10% in prices the wages are increased by 20%, the real wage increase
by_____________%.
6. The A.M of Lasperey‘s and Paasche‘s index numbers is _______________.

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CHAPTER TWO
.
2.16 Chapter Exercises
Multiple Choice Questions (MCQs)
1. What is the primary purpose of social accounts?
A) To analyze specific company performance
B) To provide a systematic record of national economic transactions
C) To compute inflation rates
D) To determine individual salaries
Answer: B
2. Which of the following is NOT a type of transactor described in the document?
A) Proactive transactor
B) Reactive transactor
C) Observational transactor
D) Passive transactor
Answer: C
3. Transactions classified as "barter transactions" involve:
A) Only money exchanges
B) The exchange of goods or services without money
C) Financial instruments
D) The transformation of economic value
Answer: B
4. National income accounting helps in determining:
A) The cost of living index
B) The reliability of economic transactions
C) How national income is shared among factors of production
D) The number of transactions in an economy

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Answer: C
5. What type of economic flow represents the creation, transformation, exchange, or extinction
of economic value?
A) Transactions only
B) Other flows only
C) Both transactions and other flows
D) None of the above
Answer: C
6. Which of the following is a feature of national income accounting?
A) Predicting stock market trends
B) Tracking personal financial transactions
C) Providing information about structural changes in the economy
D) Setting government salaries
Answer: C
7. In the context of transactions, "final consumption expenditure by households" should include:
A) Only monetary exchanges
B) The value of goods and services in barter transactions
C) Transactions between governments only
D) Intermediate consumption of industries
Answer: B
8. Why is it necessary to impute transactions in national accounting?
A) To simplify existing market transactions
B) To include significant economic activities without direct market transactions
C) To eliminate trivial economic activities
D) To ensure only financial data is recorded
Answer: B
9. Which of the following is a major use of national accounts?
A) Computing individual tax returns
B) Making international comparisons of economic output
C) Determining profit margins for private businesses
D) Calculating inflation rates

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Answer: B
10. What is a characteristic of a proactive transactor?
A) It passively observes transactions and reports data
B) It responds to transactions initiated by others
C) It controls the initiation and provides transaction data
D) It terminates transactions without any input
Answer: C
1. What is the primary purpose of national income accounting?
a) To calculate individual income
b) To measure and analyze the economic activities of a nation
c) To determine taxation levels for individuals
d) To track population growth
Correct Answer: b) To measure and analyze the economic activities of a nation
2. Which of the following is NOT a component of the System of National Accounts (SNA)?
a) Gross Domestic Product (GDP)
b) National Disposable Income
c) Barter Trade Records
d) Net Factor Income from Abroad
Correct Answer: c) Barter Trade Records
3. Suppose a country‘s GDP is $1,000 billion, and the compensation of employees accounts
for 60% of GDP. What is the value of the compensation of employees? a) $400 billion
b) $600 billion
c) $1,000 billion
d) $1,600 billion
Correct Answer: b) $600 billion
4. What type of transactor is responsible for initiating economic transactions? a) Reactive
transactor
b) Passive transactor
c) Proactive transactor
d) Intermediate transactor
Correct Answer: c) Proactive transactor

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5. A country‘s GDP is $5,000 billion, and Net Factor Income from Abroad (NFIA) is $200
billion. What is the country‘s Gross National Income (GNI)? a) $4,800 billion
b) $5,000 billion
c) $5,200 billion
d) $5,800 billion
Correct Answer: c) $5,200 billion
6. If a country‘s total output (value of goods and services) is $1 trillion and its intermediate
consumption is $400 billion, what is the Gross Value Added (GVA)? a) $1.4 trillion
b) $600 billion
c) $1 trillion
d) $400 billion
Correct Answer: b) $600 billion
7. Which of the following best describes "other flows" in national accounts?
a) Transactions involving goods and services only
b) Transactions without economic value
c) Changes in the value of assets and liabilities that do not arise from transactions d) Regular
market transaction

Multiple choice Questions:

1. Which of the following is NOT a stage of formal education?
a) Preschool education
b) Secondary education
c) Informal learning
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d) Tertiary education
Correct Answer: c) Informal learning
2. The Gross Intake Ratio (GIR) in the first grade of primary education is calculated as:
a) Enrolment of new entrants divided by total enrolment
b) Total enrolment in the first grade of primary school divided by the official school-
entrance age population, expressed as a percentage
c) Total new entrants in the first grade of primary school divided by total population
d) Enrolment in the first grade of secondary school divided by the total secondary school-
age population
Correct Answer: b) Total enrolment in the first grade of primary school divided by the official
school-entrance age population, expressed as a percentage
3. In a country, the number of new entrants in Grade 1 is 500,000, and the population of the
official primary school-entrance age is 480,000. What is the Gross Intake Ratio (GIR)? a)
100%
b) 104%
c) 96%
d) 110%
Correct Answer: b) 104%
4. Which of the following best describes "education quality as transformative potential"?
a) It ensures equitable experiences across schools and classrooms.
b) It provides education that maximizes students' potential for societal change.
c) It offers value for money through cost-effective learning.
d) It promotes specific skills for targeted professions.
Correct Answer: b) It provides education that maximizes students' potential for societal
change.
5. A school records a 15% dropout rate in Grade 5. What does this indicate?
a) 85% of the students in Grade 5 continue to Grade 6.
b) 15% of students completed Grade 5.
c) 15% of students from Grade 5 repeated the grade.
d) None of the above.
Correct Answer: a) 85% of the students in Grade 5 continue to Grade 6.
The dropout rate of 15% means 100% - 15% = 85% of students transition to the next grade.
6. In a cohort of 1,000 students enrolled in Grade 1, 800 are promoted to Grade 2, and 150
repeat Grade 1. What is the promotion rate for Grade 1? a) 80%
b) 85%
c) 95%
d) 75%
Correct Answer: a) 80%
7. The Ethiopian education system's structure was changed to:
a) 5-2-5
b) 6-3-3
c) 8-2-2
d) 6-2-4

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Correct Answer: c) 8-2-2

8. Which indicator measures the average number of years a child can expect to spend in the
education system?
a) Gross Enrolment Ratio (GER)
b) Dropout Rate by Grade
c) School-Life Expectancy (SLE)
d) Age-Specific Enrolment Ratio (ASER)
Correct Answer: c) School-Life Expectancy (SLE)
9. If the Net Enrolment Rate (NER) for primary education in a region is 85%, what does this
imply?
a) 85% of all students in the region are enrolled in primary school.
b) 85% of the school-age population is enrolled in primary school.
c) 15% of students dropped out of primary school.
d) 85% of all students graduate from primary school.
Correct Answer: b) 85% of the school-age population is enrolled in primary school.
10. In a country, 5,000 students repeat Grade 3, and the total enrolment in Grade 3 is 20,000.
What is the repetition rate for Grade 3? a) 10%
b) 15%
c) 20%
d) 25%
Correct Answer: c) 25%
11. What is the Gross Enrolment Ratio (GER) for secondary education if 120,000 students
are enrolled, but the eligible school-age population is 100,000? a) 100%
b) 110%
c) 120%
d) 80%
Correct Answer: c) 120%
12. In a specific grade, 10% of students drop out, 15% repeat the grade, and the rest
are promoted. What is the promotion rate? a) 65%
b) 75%
c) 85%
d) 90%
Correct Answer: b) 75%
13. The Survival Rate by Grade for students enrolled in Grade 1 of a cycle is 70%. What
does this indicate?
a) 70% of the students complete the cycle without repetition.
b) 30% of students drop out before completing the cycle.
c) 70% of the cohort is expected to reach the last grade of the cycle.
d) 30% of students repeat the grades in the cycle.
Correct Answer: c) 70% of the cohort is expected to reach the last grade of the cycle.
14. If the percentage of repeaters in a grade is 5%, and the dropout rate is 10%, what is the
survival rate? a) 85%
b) 95%
c) 90%

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d) 80%
Correct Answer: a) 85%
15. The Age-Specific Enrolment Rate (ASER) for 15-year-olds in a country is 80%. What
does this signify?
a) 80% of 15-year-olds are enrolled in secondary school.
b) 80% of 15-year-olds are enrolled in any level of education.
c) 20% of 15-year-olds are dropouts.
d) 20% of 15-year-olds are enrolled in primary school.
Correct Answer: b) 80% of 15-year-olds are enrolled in any level of education.
The School-Life Expectancy (SLE) for a country is calculated based on the following data:
 Age-specific enrolment rates: Age 7: 80%, Age 8: 85%, Age 9: 90%, Age 10: 75%, Age 11: 70%.
16. What is the SLE for this country?
a) 3.5 years
b) 4.0 years
c) 4.5 years
d) 5.0 years
Correct Answer: b) 4.0 years
17. In a region, the population aged 15 years and above is 1,200,000. Out of this,
960,000 individuals are literate. What is the adult literacy rate? a) 70%
b) 80%
c) 85%
d) 90%
Correct Answer: b) 80%
18. A primary school cohort starts with 500 students in Grade 1. Over the years, 450
students reach Grade 6. What is the survival rate to Grade 6? a) 90%
b) 80%
c) 75%
d) 85%
Correct Answer: a) 90%
19. In a school, 300 students are enrolled in Grade 4. By the next year, 240 students advance
to Grade 5, while 40 students repeat Grade 4. What is the repetition rate for Grade 4? a)
13.3%
b) 20%
c) 15%
d) 10%
Correct Answer: b) 20%
20. A school has an enrolment of 2,000 students for a specific grade. Out of these, 100
students drop out before the next academic year, and 300 repeat the grade. What is the
promotion rate?
a) 75%
b) 80%
c) 85%
d) 70%

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Correct Answer: a) 75%

21. In a district, there are 25,000 students enrolled in secondary school. The eligible
population for secondary education is 20,000. What is the Gross Enrolment Ratio
(GER)? a) 120%
b) 125%
c) 130%
d) 115%
Correct Answer: b) 125%
22. If the total enrolment in a primary school is 1,500 students and the official school-
age population is 1,200, what is the Net Enrolment Rate (NER)? a) 100%
b) 125%
c) 80%
d) Cannot be determined with the given data
Correct Answer: d) Cannot be determined with the given data

Multiple choice questions

1. According to the holistic definition of health by WHO in 1948, health is:
o A. The absence of disease and infirmity. o B.
Complete physical, mental, and social well-
being. o C. The state of being free from illness
or injury.
o D. A measure of physical organ functionality.
Answer: B
2. Which of the following is an example of a negative conceptualization of health?
o A. Absence of infection. o B. Maximization
of well-being.
o C. Complete mental and social well-being.
o D. Access to health services. Answer: A
3. Which of the following is NOT listed as a social determinant of health in the document?
o A. Education. o B. Geography. o C. Social
exclusion.
o D. Unemployment. Answer: B
4. Behavioral determinants of health include:
o A. Individual behavior and lifestyle. o B.
Geography and environment. o C. Community
size and resources.
o D. Industrial development. Answer: A

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5. Health service coverage refers to:

o A. The total societal effort to pursue health. o B.
The availability, accessibility, and utilization of
health services. o C. The geographical
placement of health services.
o D. The interaction between health services and
service providers only. Answer: B
6. Which of the following is an indicator of health service coverage?
o A. HIV prevalence rate. o B. Annual health
budget allocation. o C. Availability of
essential drugs.
o D. All of the above. Answer: D
7. A proportion differs from a ratio because:
o A. The numerator is unrelated to the denominator
in a proportion. o B. The numerator is
included in the denominator in a proportion. o C.
A proportion compares two unrelated quantities.
o D. Ratios and proportions are calculated the same
way. Answer: B
8. Which epidemiological measure describes the severity of an illness?
o A. Incidence rate. o B. Prevalence rate. o C.
Death-to-case ratio.
o D. Proportionate mortality. Answer: C
9. The attack rate is defined as:
o A. The number of people affected during a
specific time divided by the population size.
o B. The proportion of the population that develops
illness during an outbreak. o C. The number of
new cases of disease over a time interval.
o D. The proportion of deaths from a disease in a
population. Answer: B
10. What does prevalence rate measure?
o A. The number of new cases of a disease. o B.
The burden of a disease in a population. o C.
The proportion of cases that die from a disease.
o D. The frequency of disease occurrence over
time.
Answer: B
5.9 Chapter Exercise
1. Some persons are counted as out of the labor force because they have made no serious or
recent effort to look for work. However, some of these individuals may want to work even
though they are too discouraged to make a serious effort to look for work. If these
individuals were counted as unemployed instead of out of the labor force, then
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a. both the unemployment rate and labor force participation rate would be higher.
b. the unemployment rate would be higher and the labor force participation rate would be
lower.
c. the unemployment rate would be lower and the labor force participation rate would be
higher.
d. both the unemployment rate and labor force participation rate would be lower.
2. The rate of unemployment is the
a. population divided by the labor force.
b. number of employed divided by the population.
c. number of unemployed as a percentage of labor force.
d. number of unemployed as a percentage of the employed.
3. Which of the following people would be considered unemployed?
a. A full-time college student.
b. A recent high school graduate looking for a first job.
c. A retired school teacher collecting social security benefits.
d. A homemaker contributing 15 hours per week as a volunteer worker in a hospital.
4. Which of the following would be included as a member of the labor force?
a. A full time college student.
b. A recent high school graduate looking for a first job.
c. A homemaker contributing 15 hours per week as a volunteer worker in a hospital.
d. A retired school teacher collecting social security benefits.
5. Suppose more men decided to stay at home and raise their pre-school aged children. We
would expect:
a. The labor force participation rate for males to increase.
b. The labor force participation rate for males to decrease.
c. The labor force participation rate for males to remain the same.
d. The impact on the labor force participation rate for males to be unpredictable.
6. The labor force is defined as:
a. A. The total number of employed individuals.
b. B. The combined employed and unemployed workforce of a region.
c. C. Individuals above the age of 18 in the workforce.
d. D. Individuals working in informal and formal sectors. Answer: B
7. Economically inactive persons include:

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a. A. Self-employed individuals.
b. B. Full-time students and housekeepers.
c. C. People aged 16 and above in the workforce.
d. D. Employees of the informal sector. Answer: B
8. Which of the following is a Key Indicator of the Labor Market (KILM)?
a. A. Rate of industrial accidents.
b. B. Youth unemployment rate.
c. C. Growth in GDP.
d. D. Population birth rate. Answer: B
9. The labor force participation rate is calculated as:
a. A. The ratio of the employed population to the unemployed population.
b. B. The proportion of the labor force to the working-age population.
c. C. The percentage of unemployed persons in the economy.
d. D. The ratio of jobs to job seekers. Answer: B
10. Employment-to-population ratio measures:
a. A. The total labor force compared to the population size.
b. B. The percentage of employed individuals in the working-age population.
c. C. The number of jobs created over time.
d. D. The proportion of informal to formal employment. Answer: B
11. Which of the following is NOT a type of unemployment?
a. A. Frictional unemployment.
b. B. Cyclical unemployment.
c. C. Technological unemployment.
d. D. Structural unemployment. Answer: C
12. According to the ILO, youth are defined as persons aged:
a. A. 10-19 years.
b. B. 15-24 years.
c. C. 16-30 years.
d. D. 18-35 years. Answer: B
13. Employment in the informal economy includes:
a. A. Government employees.
b. B. Workers in unincorporated household enterprises.
c. C. Individuals working in multinational corporations.
d. D. Employees of regulated businesses only. Answer: B
14. One major limitation of unemployment rate as a labor market indicator is:
a. A. Its inability to measure employment by gender.
b. B. Its reliance on national definitions that vary in methodology.
c. C. Its exclusion of youth unemployment.
d. D. Its emphasis on economic activity over population size. Answer: B
15. The primary use of labor statistics is to:
a. A. Develop educational programs for workers.
b. B. Monitor trends and changes in the labor market.
c. C. Measure national debt levels.
d. D. Analyze tax revenue growth. Answer: B

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 Social and Economic Statistics and Demography Module

II- Answer/ Workout the Following Questions

1. Indicate whether the following people are employed, unemployed or not in the labor
force. Explain.
a. An Air-Force officer stationed in Debrezeit.
b. A consultant who works out of her home for a medical group
c. A full-time student who does not work
d. A new college graduate looking for work
e. A stay-at-home dad
f. A waiter who is laid off as a result of recession
g. A retired grandfather
2. Calculation of Labor market indicators
Use the following July 2010 data (in millions) for the United States to calculate (a) the
labor force participation rate, (b) unemployment rate, and (c) the employment/population
ratio.
July 2010 Data
Employed 139
Unemployed 14.6
Not in labor force 84.3
Civilian Population (Age 15 and over) 237.9 million
3. The following is employment information about the country Badger Land.
People under the age of 15 75
Retired people 200
Number of people with full time job 250
Number of people with part time job 175
Number of people without a job but looking for one 75
Number of people without a job and not looking for one 25
Entire Population 800 a. What is the unemployment rate of Badger Land?
b. What is the labor force participation rate in Badger Land?

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