Explain swedish labor-force participation rate

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1. In 2009, based on concepts similar to those used to estimate U.S. employment figures, the Swedish adult non-institutionalized population was 7.568 million, the labor force was 4.888 million, and the number of people employed was 4.486 million. According to these numbers, the Swedish labor-force participation rate and unemployment rate were about

a. 64.6% and 8.2%.

b. 59.3% and 8.2%.

c. 59.3% and 5.3%.

d. 64.6% and 5.3%

2. Using the net benefit ratio method of Deaton, please tell us whether a 10% increase in output price will increase or decrease the economic welfare of each of the following three agricultural households, by how much, and why (be sure to show your work):

a. Household A, which produces $100 of output of the crop but does not consume any of it (selling the whole harvest on the market) and has a total income of $200.

b. Household B, which produces $100 of output of the crop, consumes $50 (selling the difference on the market), and has a total income of $200.

c. Household C, which produces $100 of output of the crop and consumes $150 (purchasing the difference on the market) and has a total income of $200.

Reference no: EM1346456

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