Question

If the number of unemployed persons in a country equals 24 million, the number of employed persons equals 8 million, and the number of persons over age 16 in the population equals 40 million, the unemployement rate equals:
a. 18%
b. 25%
c. 32%

Answer 1

Full Question:

If the number of unemployed persons in a country equals 24 million, the number of employed persons equals 8 million, and the number of persons over age 16 in the population equals 40 million, the unemployment rate equals:

a. 18%

b. 25%

c. 32%

d. 75%

Answer:

The correct answer is D) 75%                                                                            

Explanation:

Step 1:

The formula for unemployment rate is:

Unemployment Rate = (Number of Unemployed Persons / Labor Force) x 100

The labor force is the sum of unemployed and employed persons. By dividing the number of individuals whom are unemployed by labor force, you'll find the labor force participation, or unemployment rate.

Step 2

Therefore:

The labor force is arrived at by adding:

24 Million and 8 Million.

(24,000,000 + 8,000,000) = 32 Million

Step 3:

If number of unemployed persons is given as 24 Million, therefore

Unemployment rate = (24,000,000/32,000,000) x 100

Unemployment rate =   75%

Cheers!