Question

The​ employment-population ratio measures the
A. percentage of the working age population that is not employed.
B. percentage of the working age population that is in the labor force.
C. percentage of the working age population that is employed.
D. portion of the total population that is employed.
When an unemployed person drops out of the labor​ force, the unemployment rate?
A. overstates the true degree of joblessness in the economy.
B. becomes more reliable as all the potential erroneous data are removed.
C. is not affected by the existence of such workers.
D. understates the true degree of joblessness in the economy.
When an unemployed person drops out of the labor​ force, it
A. does not affect the labor force participation rate.
B. does not affect the​ employment-population ratio.
C. affects the​ employment-population ratio.
D. does not affect the unemployment rate.

Answer 1

Answer:

A. percentage of the working age population that is not employed.

D. understates the true degree of joblessness in the economy.

B. does not affect the​ employment-population ratio.

Explanation:

The employment population is the population which is not employed out of the total population willing to be employed.

Thus, in a population there are people who want to work, and are working and people who want to work, but cannot find work.

When a person who is unemployed drops out of the total labor force then the unemployment rate, will be understated which will clearly, not show the fair state of joblessness in the economy as the person without job is not included in labor force.

As the employment ratio is based on population and not on labor force the dropping of unemployed person from the labor force will not affect the employment ratio.