Question

Suppose that the adult population in the town of Springfield is 225 million. If 40 million are unemployed and 100 million are employed, then the unemployment rate is approximately.a) 29%b) 18%c) 24%d) 6%

Answer 1

Answer:

a) 29%

Explanation:

The formula to compute the unemployment rate is shown below:

Unemployment rate = (Number of Unemployed workers) ÷ (Total labor force) × 100

where,

Number of unemployed = 40 million

Total labor force = Number of unemployed + number of employed

                            = 40 million + 100 million

So, the unemployment rate would be

= (40 million) ÷ (140 million) × 100

= 29%