Re: SAU 2013 paper

Posted by Homer Simpson on Apr 02, 2014; 1:50pm
URL: http://discussion-forum.276.s1.nabble.com/SAU-2013-paper-tp7585948p7585974.html

I dont know how to do 41. As for 43, i did it this way -

Labor force = employed (urban+rural) + unemployed
         L       = L(u) + L(r) + Q

Assume, Q = unemployed

thus, L -L(r) = L(u) + Q

My equation after substituting values becomes-

=> 60 x (L(u)/L(u) + Z) = 40
=> 3 L(u) = 2 L(u) + 2Q
=> Q = (1/2)L(u)

Thus, we see for a one unit change in urban employment, unemployment rises by 1/2. Therefore (b).