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The data show U.S. consumption and exports of cigarettes.

Explorations in College Algebra | 5th Edition | ISBN: 9780470466445 | Authors: Linda Almgren Kime ISBN: 9780470466445 178

Solution for problem 2.1.14 Chapter 2

Explorations in College Algebra | 5th Edition

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Explorations in College Algebra | 5th Edition | ISBN: 9780470466445 | Authors: Linda Almgren Kime

Explorations in College Algebra | 5th Edition

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Problem 2.1.14

The data show U.S. consumption and exports of cigarettes. a. Calculate the average rates of change in U.S. cigarette consumption from 1960 to 1980, from 1980 to 2007, and from 1960 to 2007. b. Compute the average rate of change for cigarette exports from 1960 to 2007. Does this give an accurate image of cigarette exports? c. The total number of cigarettes consumed in the United States in 1960 was 484 billion, very close to the number consumed in 1995, 487 billion. Does that mean smoking was as popular in 1995 as it was in 1960? Explain your answer. d. Write a paragraph summarizing what the data tell you about the consumption and exports of cigarettes since 1960, including average rates of change.

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Econ 201: Week 13 Unemployment Labor Force Statistics • Created by the BLS (Bureau of Labor Statistics) in the U.S. Department of Labor • Based on regular survey submitted from 60,000 households • Based on “adult population”-­‐ 16 years and older o Disincluding: military, institutionalized, incarcerated, minors Population divided into 3 groups: by BLS 1. Employed-­‐ Paid employer, self-­‐employed, and unpaid workers in a family business 2. Unemployed-­‐ Non-­‐working people that have been looking for work the past 4 weeks 3. Not in the Labor Force-­‐ Everyone else (stay at home moms, full time students, retires) Labor Force • All people capable of working (whether currently working or not) o Working: Employed o Actively looking for work: Unemployed Civilian Adult Population Labor Force Non-­‐Labor Force Employed Unemployed • Unemployment Rate o Percentage of unemployment in the Labor Force o Also called U-­‐Rate § = 100 * (# unemployed/ labor force) • Labor Force Participation Rate o Percentage of the Adult Population in the Labor Force § = 100 * (labor force/ adult population Understanding Unemployment • Categorized by its characteristics and duration o Not always the same o Basic truth: there’s always some U • The natural rate of U o The normal rate of unemployment around the actual unemployment rate fluctuates § Made up of frictional and structural unemployment § The long run “average” • Unemployment Insurance: o Government program that provides funding to unemployed workers § Benefits: Reduce income uncertainty; increases search time; increases possibility of job that is a good fit, this increasing productivity § Costs: Increases frictional unemployment Explaining Natural Rates of U • Frictional Unemployment: o When workers are searching for a job that best suits their skills/taste o Short-­‐term in most cases • Structural Unemployment: o The skills of the worker aren’t “valued” by the market o Occurs when there aren’t enough jobs in the market § Can be long-­‐term § Can result from “sticky wages” W 1: actual wage Explaining Structural U: Policy Occurs when wages are above equilibrium W eqm 1. Min Wage Laws: Price floor (mostly effects teen employment) 2. Unions: Worker association; collective bargaining w/ employers over wages, benefits, and working conditions 3. Efficiency Wages: Firms voluntarily pay higher than equilibrium wages to boost worker productivity Cyclical Unemployment • The deviation of unemployment from its natural rate • Associated with the business cycles: short-­‐run • Result of deficient demand Labor Market Statistics: Policy • The Official U Rate (U-­‐3) and others: published by BLS o Statistics based on demographic information o Measured the length of U • Data shows drastically different labor market experiences for different groups (age, race, etc.) • Trends help policy makers make better polices o Caveat: Trends can inform, even if data flawed Types of Unemployed People • Marginally Attached: person is neither working nor looking for work; person wants to work, is available, and has looked in the past 2 months. Is not included in U. • Discouraged Workers: person would like to work, but has stopped looking because of a, “given up on the job market” related reason. Identified as “Not in the Labor Force.” • Underemployment: person is working below their skill level. U-­‐rate fails to show economy failure.

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Chapter 2, Problem 2.1.14 is Solved
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Textbook: Explorations in College Algebra
Edition: 5
Author: Linda Almgren Kime
ISBN: 9780470466445

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The data show U.S. consumption and exports of cigarettes.