Lesson 5 Answer Key

Startup
The Labor Force: Start Up
The goal of this activity is to get students to think about the lesson they are about to study and
to connect with any prior knowledge they may have of the subject. Students’ answers should be
thoughtful and should include reasons or evidence to support their ideas.

Possible answer: For businesses, it could mean that they save on costs for benefits and wages.
For the economy, it could mean that workers earn less money and have less money to spend.
This could weaken the economy. The part-time trend could affect me if my parents suddenly
made less money because they had part-time instead of full-time jobs. Or my parents might
be forced to work more hours because they might work two part-time jobs instead of one
full-time job

Interactive Reading Notepad

The Labor Force
1. Compare and Contrast According to the lesson, the U.S. economy has, over the past
two decades, shifted from a manufacturing economy toward a service-producing
economy. How do economists differentiate between the two?
Possible answer: In a manufacturing economy, an increased importance is placed on the
manufacturing sector (automobiles, steel, textiles). In a service economy, an increased
importance is placed on the service sector (hotels, airlines, restaurants).

2. Draw Inferences What do you think the fact that the U.S. economy has shifted to a
service-producing economy might mean for you as you begin a job search? What jobs are
more likely to be available to you? What jobs are less likely to be available?
Possible answer: In my job search, there will likely be many more service-oriented jobs
(such as a hotel desk clerk, a ticket-taker at the movie theater, or a server at a restaurant)
then there will likely be manufacturing-type jobs (such as working in a mill or a
warehouse).

3. Vocabulary: Use Context Clues Read the section titled “A Changing Economy.” Why do
you think the term energized is used to describe the changing economy of the mid-to-late
1800s?
"Energized" is used in this instance to show that the economy had, for so many decades,
been a largely farming economy. With the Industrial Revolution came a re-focus and a
new energy that had before not been seen.

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4. Draw Inferences What improvements to computers do you think make it possible for
them to be used in fields such as agriculture and forestry?
Possible answer: Computers have become faster, smaller, and less expensive, so that
they are available to more people in different occupations. For example, a farmer can use
a tablet while working outside to record and gather information. A forester could access
satellite data to help navigate a forested area. Also, over time, many new software
programs and applications have been produced that allow people in different occupations
to use computers in new ways.

5. Draw Inferences Why do you think our nation has become a service economy? Do you
think there is any relationship between the shift from manufacturing industries to service
industries and the fact that jobs being shipped overseas? If so, what is that relationship?
Possible answer: The fact that we’ve become a service industry does have a lot to do with
jobs being shipped overseas. Many of the jobs offshored are manufacturing jobs. These
types of jobs are often the low-paying jobs that, by shipping out, allow corporations to
save billions of dollars. Service jobs, on the other hand, are more often jobs that must
remain here (working in hotels, or restaurants, or schools, for example). These jobs are
jobs that cannot easily be shipped elsewhere.

6. Summarize What are some effects that outsourcing and offshoring have had on the U.S.
economy?
As less-skilled manufacturing jobs have moved overseas, the Americans who had filled
these jobs have had to find new work. Many have gone back to school or entered job-
training programs to gain new skills. The fact that this offshoring trend has spread into
high-skilled industries has affected fields outside of manufacturing, such as auto design
and some medical services as well.

7. Draw Inferences There are benefits to having only permanent employees at a company,
and there are benefits to replacing such employees with temporary workers. Which do
you think is better for a company. Why?
Possible answer: I think that having permanent employees is better for a business
because these workers have a better knowledge of the business; they know its history
and are skilled at their jobs. Temporary employees may cost the business less money
because they receive fewer benefits, but they need to learn on the job; they may need
training and may not have as great a knowledge of the business.

8. Analyze Interactions Why do you think the number of women in the labor force has
nearly doubled in the last 50 years?
Possible answer: Many factors have led to the dramatic increase in the number of women
in the labor force over the past 50 years. With the expectation of earning more, more
women entered the workforce. In addition, as more and more jobs become available in
the service sector of the economy, fewer jobs call for physical strength. Instead, jobs
require brainpower and personal skills, placing men and women on equal footing.

Answer Key
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 9. Summarize Why have real average wages decreased in the last couple of decades?
Among the many reasons why real average wages decreased in the last couple of
decades is that greater competition from foreign companies has decreased the demand
for workers. Deregulation of many domestic industries, such as trucking, air travel, and
telecommunications, may have forced firms to cut employees’ wages as competition has
intensified. The increased use of temporary work has also held down wages.

10. Vocabulary: Use Context Clues According to the Lesson, benefits are an important part
of the compensation given to workers for their labor. Give examples of these benefits, and
explain why you think they are so important to employees.
Possible answer: Benefits to employees include things such as healthcare, pensions, and
paid vacation time. These are important to employees because they add real value to
their earnings. Obtaining healthcare insurance through an employer, for example, can
potentially save an employee thousands of dollars each year in reduced premium costs.

Interactivities
Interactive Gallery: Comparing Jobs in a Changing Economy
1. Analyze Information Describe how technology has affected jobs in each of the
categories you read about.
Possible answer: Technology has eliminated the job of switchboard operator;
communications satellites are now used to connect callers. These same communications
satellites provide new jobs for people who build and repair them. Technology has
changed the way physicians examine and evaluate patients; technology in the form of
new diagnostic equipment has created new jobs, such as radiologists, in the field of
medicine. Technology in the form of computer software has eliminate the job of
typesetting, but has opened up new jobs for graphic designers who design and prepare
pages onscreen.

2. Analyze Data How does the graph show that the economy has changed over time? How
do the jobs you read about in the category of communications relate to information in
the graph?
Possible answer: The graph shows a dramatic increase in the number of service-
producing jobs over time. In comparison, the number of goods-producing jobs has
remained fairly constant. A number of the jobs I read about (both past and modern day)
are service-producing jobs: switchboard operator, physician, and radiologist. A
communication satellite engineer could be a service-producing or goods-producing job,
depending on whether the engineer is manufacturing or repairing a satellite. Both a
typesetter and a graphic designer are goods-producing jobs.

3. Draw Conclusions Why do you think many American manufacturing workers have had to
go back to school or enter job-training programs in recent years?
Traditional manufacturing jobs are being replaced by service jobs and jobs that require
technological skills.

Answer Key
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Interactive Graph: Analyzing Data About Women at Work
1. Analyze Data In 1970, there were about 32 million women in the labor force. In that same
year, about 30 million were employed. By 2012, about 72 million women were in the labor
force, and about 67 million women were employed. Use these values to find the percent
of women in the labor force who were employed in 2012 and the percent who were
employed in 1970. How has this percentage changed over time?
Possible answer: Technology has eliminated the job of switchboard operator;
communications satellites are now used to connect callers. These same communications
satellites provide new jobs for people who build and repair them. Technology has
changed the way physicians examine and evaluate patients; technology in the form of
new diagnostic equipment has created new jobs, such as radiologists, in the field of
medicine. Technology in the form of computer software has eliminated the job of
typesetting, but has opened up new jobs for graphic designers who design and prepare
pages onscreen.

2. Analyze Information Over time, the United States has experienced a shift from having a
manufacturing economy to having a service economy. How do you think this shift has
affected women looking for work?
Possible answer: The graph shows a dramatic increase in the number of service-
producing jobs over time. In comparison, the number of goods-producing jobs has
remained fairly constant. A number of the jobs I read about (both past and modern day)
are service-producing jobs: switchboard operator, physician, and radiologist. A
communication satellite engineer could be a service-producing or goods-producing job,
depending on whether the engineer is manufacturing or repairing a satellite. Both a
typesetter and a graphic designer are goods-producing jobs.

Lesson Synthesize
Students’ answers should be thoughtful and reflective and should attempt to synthesize a
number of different ideas they have learned in the topic so far.

Answers will vary. Possible answer: A business owner might decide to cut costs by moving
some jobs overseas. This might affect me and people I know if adults in the community lost
jobs. If one of my parents lost his or her job, we might have to cut back on spending while my
parent looked for a new job. Another decision a business owner might make would be to cut
back on benefits for employees. In that case, the employees might have to pay more for health
care and have less money to spend in the economy.

Answer Key
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Lesson Quiz
1. Read each question and choose the best answer.
Over the past two decades, the U.S. economy has shifted from a manufacturing economy
toward a(n) __________ economy.
A. industrial-based
B. service-producing
C. high-tech
D. agricultural-based
Correct Answer: B

2. Read each question and choose the best answer.

Which term does the Bureau of Labor Statistics use to describe people who once sought
work but have given up looking for a job?
A. part-time workers
B. discouraged workers
C. unemployed workers
D. under-employed workers
Correct Answer: B

3. Read each question and choose the best answer.

Which of the following BEST defines the learning effect theory?
A. With increased education comes an increased efficiency of production, resulting in
higher wages.
B. With increased education comes increased intelligence and an increased tendency to
be hard-working.
C. With increased education comes increased aptitude for memorizing, recalling, and
test-taking.
D. With increased education comes increased importance in an employee's role in a
given company.
Correct Answer: A

4. Read each question and choose the best answer.

Which of the following is a practice that U.S. companies might follow to lower costs?
A. hiring fewer female workers
B. hiring fewer foreign-born workers
C. hiring more full-time workers
D. hiring more part-time workers
Correct Answer: D
Answer Key
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5. Read each question and choose the best answer.
Suppose data show an increase in offshoring by U.S. companies. Which of the following
describes a possible effect on the unemployment rate?
A. The unemployment rate would remain steady, because offshoring has no effect on
jobs in the United States.
B. The unemployment rate would increase, because jobs formerly taken by U.S.
employees are now located in other countries.
C. The unemployment rate would decrease, because offshoring creates new jobs in
other countries.
D. The unemployment rate would decrease because U.S. workers can easily find other
jobs in other industries.
Correct Answer: B

Answer Key
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Lesson 5 eText Answer Key
Tracking the Labor Force
Captions

Analyze Political Cartoons How does the cartoon illustrate the plight of “discouraged workers”
looking for jobs in a period of high unemployment?

1. (Discouraged workers are unemployed workers who have given up looking for work. The
caption suggests that this worker may look for a long time (five years) without finding
employment.)

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The chart shows that more than a third of the population 16 and over is not in the labor
force. Analyze Charts How is being unemployed different from not being in the labor force?

1. (Unemployed people are counted in the labor force.)

Analyze Graphs In what year between 1970 and 2013 was the unemployment rate the lowest?
What was the unemployment rate in that year?

1. (2000; 4%)

Reading Check
1. Recall Give two examples of employment data that the Bureau of Labor Statistics
provides information about.
Possible answer: the number of people in the U.S. labor force; how many people in the
labor force are employed or unemployed

Answer Key
8
Occupational Trends
Captions

In a little over 200 years, industry in the United States has changed dramatically. Analyze
Information What 50-year period do you think has seen the most change and innovation,
and why?

1. (Answers will vary. Possible answer: From 1950 to 2000 because computers took over
many jobs previously done by humans and created new jobs for humans.)

The graph compares the growth of service-producing and goods-producing industries

over time. Analyze Graphs About how many service-producing jobs were added in the
period shown?

1. (about 90 million jobs)

Reading Check
1. Identify Central Ideas What is the main impact of outsourcing?
Outsourcing increases layoffs.
Answer Key
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The Changing Labor Force
Captions

More education corresponds to greater income. Analyze Graphs How do the earnings of
someone with a professional degree compare to those of someone with a high school diploma?

1. (A person with a professional degree earns over $1700 per week, compared to about
$650 for someone with a high school diploma.)

Part-time employment has increased since 2002. Analyze Graphs By about how much did the
number of part-time workers change between 2008 and 2009?

1. (an increase of about 2 million workers)

Answer Key
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The graphs illustrate trends related to the U.S. labor force. Analyze Graphs About how many
times as many temporary employees were employed in 2012 as were employed in 1970?

1. (about 2.1 times as many)

Reading Check
1. Check Understanding How is the screening effect beneficial to employers?
It helps them to identify people who may be good employees because of their
perseverance and innate skills.

Wages and Benefits Trends

Captions

Reading Check
1. Identify Supporting Details Who pays Social Security taxes?
Employees and employers share this cost, as employers pay a matching amount
corresponding to that which employees pay.

Interactivities
Interactive Gallery: Comparing Jobs in a Changing Economy
1. Analyze Information Describe how technology has affected jobs in each of the
categories you read about.
Possible answer: Technology has eliminated the job of switchboard operator;
communications satellites are now used to connect callers. These same communications
satellites provide new jobs for people who build and repair them. Technology has
changed the way physicians examine and evaluate patients; technology in the form of
new diagnostic equipment has created new jobs, such as radiologists, in the field of
Answer Key
11
 medicine. Technology in the form of computer software has eliminate the job of
typesetting, but has opened up new jobs for graphic designers who design and prepare
pages onscreen.

2. Analyze Data How does the graph show that the economy has changed over time? How
do the jobs you read about in the category of communications relate to information in the
graph?
Possible answer: The graph shows a dramatic increase in the number of service-
producing jobs over time. In comparison, the number of goods-producing jobs has
remained fairly constant. A number of the jobs I read about (both past and modern day)
are service-producing jobs: switchboard operator, physician, and radiologist. A
communication satellite engineer could be a service-producing or goods-producing job,
depending on whether the engineer is manufacturing or repairing a satellite. Both a
typesetter and a graphic designer are goods-producing jobs.

3. Draw Conclusions Why do you think many American manufacturing workers have had to
go back to school or enter job-training programs in recent years?
Traditional manufacturing jobs are being replaced by service jobs and jobs that require
technological skills.

Interactive Graph: Analyzing Data About Women at Work

1. Analyze Data In 1970, there were about 32 million women in the labor force. In that same
year, about 30 million were employed. By 2012, about 72 million women were in the labor
force, and about 67 million women were employed. Use these values to find the percent
of women in the labor force who were employed in 2012 and the percent who were
employed in 1970. How has this percentage changed over time?
Possible answer: Technology has eliminated the job of switchboard operator;
communications satellites are now used to connect callers. These same communications
satellites provide new jobs for people who build and repair them. Technology has
changed the way physicians examine and evaluate patients; technology in the form of
new diagnostic equipment has created new jobs, such as radiologists, in the field of
medicine. Technology in the form of computer software has eliminated the job of
typesetting, but has opened up new jobs for graphic designers who design and prepare
pages onscreen.

2. Analyze Information Over time, the United States has experienced a shift from having a
manufacturing economy to having a service economy. How do you think this shift has
affected women looking for work?
Possible answer: The graph shows a dramatic increase in the number of service-
producing jobs over time. In comparison, the number of goods-producing jobs has
remained fairly constant. A number of the jobs I read about (both past and modern day)
are service-producing jobs: switchboard operator, physician, and radiologist. A
communication satellite engineer could be a service-producing or goods-producing job,
depending on whether the engineer is manufacturing or repairing a satellite. Both a
typesetter and a graphic designer are goods-producing jobs.

Answer Key
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Lesson Assessment
1. Summarize Who makes up the labor force?
all nonmilitary people who are employed or unemployed

2. Cite Evidence Harry is a 34-year-old sergeant in the United States Air Force. He has
been employed full time with the Air Force since graduating from college. Is Harry
considered to be part of the U.S. labor force? Why or why not?
Harry is not considered part of the U.S. labor force, because the labor force does not
include people in the military.

3. Generate Explanations Ignacio owns a small business that employs 12 full-time workers.
He has recently been told by his financial advisor that he would benefit financially from
adopting a contingent employment strategy. What would Ignacio have to do in order to
take his financial advisor’s advice?
Ignacio would have to replace at least a portion of his full-time staff with temporary or
part-time workers.

4. Infer What does the learning effect demonstrate about continuing education?
According to the learning effect, the more education someone achieves, the greater his or
her skills, and the higher that person’s annual salary is likely to be.

5. Draw Conclusions Why are contracted workers often a more attractive alternative for
employers?
Contracted workers very often receive few or no company benefits, saving the company
substantial amounts of money.

Answer Key
13
Lesson 5 Print Answer Key
Tracking the Labor Force
Captions

The chart shows that more than a third of the population 16 and over is not in the labor
force. Analyze Charts How is being unemployed different from not being in the labor force?

1. (Unemployed people are counted in the labor force.)

Reading Check
1. Recall Give two examples of employment data that the Bureau of Labor Statistics
provides information about.
Possible answer: the number of people in the U.S. labor force; how many people in the
labor force are employed or unemployed

Answer Key
14
Occupational Trends
Captions

In a little over 200 years, industry in the United States has changed dramatically. Analyze
Information What 50-year period do you think has seen the most change and innovation,
and why?

1. (Answers will vary. Possible answer: From 1950 to 2000 because computers took over
many jobs previously done by humans and created new jobs for humans.)

The graph compares the growth of service-producing and goods-producing industries over
time. Analyze Graphs About how many service-producing jobs were added in the period
shown?

1. (about 90 million jobs)

Answer Key
15
Reading Check
1. Recall Why do companies engage in offshoring?
Labor and costs of building factories are lower in some other countries than in the United
States.

The Changing Labor Force

Captions

More education corresponds to greater income. Analyze Graphs How do the earnings of
someone with a professional degree compare to those of someone with a high school diploma?

1. (A person with a professional degree earns over $1700 per week, compared to about
$650 for someone with a high school diploma.)

Part-time employment has increased since 2002. Analyze Graphs By about how much did the
number of part-time workers change between 2008 and 2009?

1. (an increase of about 2 million workers)

Answer Key
16
The graphs illustrate trends related to the U.S. labor force. Analyze Graphs About how many
times as many temporary employees were employed in 2012 as were employed in 1970?

1. (about 2.1 times as many)

Reading Check
1. Check Understanding How is the screening effect beneficial to employers?
It helps them to identify people who may be good employees because of their
perseverance and innate skills.

Wages and Benefits Trends

Captions

Reading Check
1. Identify Supporting Details Who pays Social Security taxes?
Employees and employers share this cost, as employers pay a matching amount
corresponding to that which employees pay.

Lesson Assessment
1. Summarize Who makes up the labor force?
all nonmilitary people who are employed or unemployed

2. Cite Evidence Harry is a 34-year-old sergeant in the United States Air Force. He has
been employed full time with the Air Force since graduating from college. Is Harry
considered to be part of the U.S. labor force? Why or why not?
Harry is not considered part of the U.S. labor force, because the labor force does not
include people in the military.
Answer Key
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3. Generate Explanations Ignacio owns a small business that employs 12 full-time workers.
He has recently been told by his financial advisor that he would benefit financially from
adopting a contingent employment strategy. What would Ignacio have to do in order to
take his financial advisor’s advice?
Ignacio would have to replace at least a portion of his full-time staff with temporary or
part-time workers.

4. Infer What does the learning effect demonstrate about continuing education?
According to the learning effect, the more education someone achieves, the greater his or
her skills, and the higher that person’s annual salary is likely to be.

5. Draw Conclusions Why are contracted workers often a more attractive alternative for
employers?
Contracted workers very often receive few or no company benefits, saving the company
substantial amounts of money.

Answer Key
18