Brain Teaser! Kudos if you can solve

Discussion in 'Economy' started by whom, Oct 14, 2008.

  1. whom
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    whom Rookie

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    During the course of a year, the labor force consists of the same 1000 people. Of these, 20 lack skills that employers desire and hence remain unemployed throughout the year. At the same time, every month during the year, 30 people become unemployed, and 30 other different people who were unemployed find jobs. There is no seasonal employment.
    A) What is the frictional unemployment rate?


    B) What is the unemployment rate?

    C) Suppose that a system of unemployment compensation is established. Each month, 30 new people continue to become unemployed, but each monthly group of newly unemployed now takes two months to find a job. After this change, what is the frictional unemployment rate?

    D) After the change discussed in C, what is the unemployment rate?
     
  2. Skull Pilot
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    Skull Pilot Platinum Member

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    The frictional unemployment rate can be abolished by the liberal application of KY Jelly.
     
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  3. RetiredGySgt
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    RetiredGySgt Platinum Member

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    Missing something here. If only 20 people are permanently unemployed to start and 30 more are added each month BUT another 30 GET jobs each month.....
     
  4. Bern80
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    Bern80 Gold Member

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    On the face of it at least:

    A) 5%

    B) 2%

    C) 8%

    D) 2%

    I assume there's a point in our future?
     
  5. editec
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    editec Mr. Forgot-it-All

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    Depends.

    If the unemployed became so because their jobs were shipped to a nation of slaves, then they're not unemployed, they're just socialist slackers who brought that sorry state upon themselves by demanding a livable wage.
     
  6. Bern80
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    Bern80 Gold Member

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    Wow. I just have to congratulate you on your attempt at making something out of absolutey nothing. The BS to word ratio of this post is quite staggering.

    I realize you're just trying to goad me, but since none of that reflects my position in the least and the rest is so convolutedly stupid I suggest you try again. Perhaps with something resembling accuracy and coherence.
     
    Last edited: Oct 15, 2008
  7. RetiredGySgt
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    RetiredGySgt Platinum Member

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    Do I get to add 10 people to the work force total? If not, again, your numbers can not work.
     
  8. Mr. President
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    Mr. President BOARD PRESIDENT..carry on

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    none of the percentages fit
     
  9. jillian
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    jillian Princess Supporting Member

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    8%

    why?

    of course, I could be totally wrong..... if math were my thing, I'd have become a doctor, not a lawyer. lol.. but I figured I'd take a shot anyway.
     
  10. Bern80
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    Bern80 Gold Member

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    I'm not saying I'm right. But frictional unemployment is basically anybody between jobs and looking for work. So if it takes two month for people to find work you 30 laid off each month. the mext month thirty more get laid off and the 30 from the previous month still aren't unemply so that's 6% plus the 20 so called unemployable, but I would still call them frictionally unemployed as well so that's 8%. Not a 100% on this but I don't believe frictional umemployment is counted in unemployment.
     
    Last edited: Oct 15, 2008

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