Question

The towns of Jekyll and Hyde each have a labor force of 2,000 people. In Jekyll, 500 people were unemployed for the entire year, while the rest of the labor force was employed continuously. In Hyde, every member of the labor force was unemployed for three months and was employed for nine months. The average duration of unemployment spells over the year was _____ months in Jekyll and _____ months in Hyde.
A) 3;9 B) 3; 3 C) 12;9 D) 12;3

Answer 1

Answer:

D) 12;3

Explanation:

The average duration of unemployment in Jekyll is 12 month and 3 months in Hyde. The total employees in Jekyll are 2000 out of which 500 are not employed during the entire year. The calculation will be as,  

For Jekyll town,

(500 unemployed labors * 12 months) / 500 unemployed employees

= 12 months.

For Hyde town,

(2000 employees * 3 month unemployed) / 2000 employees  

= 3 months.