Question

Suppose the adult population of Micronesia is 100,000 people. Of these 100,000 people, 20,000 are not in the labor force. Of the remaining 80,000 people, 16,000 have given up searching for a job and are not actively seeking work; 4,000 are unemployed and actively seeking work; 14,000 work part time; and the remainder are fully employed.
What is the unemployment rate in Micronesia?
a. 5%
b. 6.25%
c. 8.5%
d. 10%

Answer 1

Answer:

b. 6.25%

Step-by-step explanation:

In order to obtain the unemployment rate in Micronesia, you have to divide the amount unemployees that still in the labor force between the amount of people in the labor force.

The labor force is defined as the number of people employed plus the unemployed people who are seeking work.

The number of people employed is the people who work part time plus the people who are fully employed (the remainder of the 80,000 people). Therefore:

14,000 + (80,000 -16,000 - 4,000 - 14,000)

14,000+46,000=60,000

The number of unemployed people who are seeking work is:

4,000

The labor force is:

60,000 + 4,000 = 64,000

The unemployment rate is:

4,000/64,000 = 0.0625

Multiplying by 100 to obtain the percentage:

0.0625(100)=6.25%