Problems

46.

A country with a population of eight million adults has five million employed, and 500,000 unemployed, and the rest of the adult population is out of the labor force. What’s the unemployment rate? What share of the population is in the labor force? Sketch a pie chart that divides the adult population into these three groups.

47.

A government passes a family-friendly law that no companies can have evening, nighttime, or weekend hours, so that everyone can be home with their families during these times. Analyze the effect of this law using a supply and demand diagram for the labor market; first by assuming that wages are flexible, then assuming that wages are sticky downward.

48.

As the baby boomer generation retires, what should happen to wages and employment? Can you show this graphically?