Statistics & Economics (CAB2)

Week 5
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Week 5

Workshop questions

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Employment
Chapter 22 Page 562

1. What determines if a person is in the labor force?

2. What distinguishes an unemployed person from one who is not in

the labor force?

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Employment
Chapter 22 Page 576 question 1

The BLS reported the following data for January 2021:

• Labor force: 159 million
• Employment: 148 million
• Working-age population: 261 million
Calculate the
a. Unemployment rate
b. Labor force participation rate
c. Employment-to-population ratio.

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Employment
Let’s use some statistical knowledge to explore the
labor market of Singapore.

Source: FAQ About Singapore's Location and History (thoughtco.com)

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Employment
Let’s use some statistical knowledge to explore the labor market of
Singapore.
Go to the EXCEL data of Week 5 Task 1,
you will see:

• the labor force participation rate

• Research and development
expenditure (% of GDP)
• Education Spending
Attention: for some years, the data are missing.
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Employment
Let’s use some statistical knowledge to explore the
labor market of Singapore.

Please explore the relationships

a. between the labor force

participation rate and R&D
expenditure

b. between the labor force

participation rate and education
spending.
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Employment
Chapter 22 Page 576 question 6-7
(read the article in the book about ‘Singapore’s Unemployment Is set to Increase’ to answer
question 6 and 7)

6. What are the two types of unemployment described in the news clip? Why is
one of them more worrying for officials in Singapore?

7. Which types of unemployment could not have been prevented even if

Singapore’s economy did not slow down and the labor market was working
properly?

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 Exchange Rate
Let’s look into the definition of exchange rates in OECD.

Source: OECD (2022), Exchange rates (indicator). doi: 10.1787/037ed317-en (Accessed on 14 December 2022)
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Exchange Rate
Chapter 26 p. 668 Question 1

1. What are the influences on the demand for U.S. dollars in the
foreign exchange market?

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Exchange Rate
Chapter 26 p. 668 Question 4

4. What happens if there is a shortage or a surplus of U.S. dollars in

the foreign exchange market?

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Exchange Rate

Let’s take a look at

the exchange rate of
Columbia.

Source: Where is Colombia? / Where is Colombia Located in The World Map (whereig.com)
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Exchange Rate
Go to the EXCEL data of Week 5 Task 2, you will see:

• The exchange rate

• Trade in goods

Source: OECD (2022), Trade in goods (indicator). doi: 10.1787/1ea6b5ed-en (Accessed on 14 December 2022)
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Exchange Rate
Please fill in the blank:

_________% of the variation of trade in goods is explained by the

variation of the exchange rate.

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Source: OECD (2022), Trade in goods (indicator). doi: 10.1787/1ea6b5ed-en talent.
(Accessed move
on 14 the world.
December 2022)
Exchange Rate
Colombia is the world’s biggest producer of roses. The global demand
for roses increases and at the same time Colombia’s central bank
increases the interest rate. In the foreign exchange market for
Colombian pesos, what happens to (see a-e)

a. The demand for pesos?

b. The supply of pesos?
c. The quantity of pesos demanded?
d. The quantity of pesos supplied?
e. The peso-U.S. dollar exchange rate?

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Exchange Rate
FED increase interest rate  Exchange rate increases WHY???

15 bln
i 0.25 25 bln

5 bln
5 bln

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Exchange Rate
If the exchange rate of the dollar increases, what will happen to

• imports

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Exchange Rate
If the interest rate in the USA will increase, what will happen to:
• Investments of businesses
• Consumer spending.

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Exchange Rate
Question
Australia has lost the crown as the number one beef exporter to China, as the
Chinese seek cheaper imports from Brazil and Uruguay. Australian beef exports,
have dropped overall by 41 per cent in May 2016, compared to the year before,
according to Meat and Livestock Australia. The biggest falls were in grass-fed and
frozen beef, showing a trend this calendar year, a decline of over 30 per cent. (
ABC, 2016)
 With reference to the context information to explain the expected effect on
exchange rate of the AUD.
AUD = Australian Dollar; CNY = Chinese Yuan

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