Question

In 2009, based on concepts similar to those used to estimate U.S. employment figures, the Italian adult non- institutionalized population was 51.070 million, the labor force was 24.710 million, and the number of people employed was 22.765 million. According to these numbers, the Italian labor-force participation rate and unemployment rate were about:____________
a. 48.4% and 3.8%.
b. 48.4% and 7.9%.
c. 44.6% and 3.8%
d. 44.6% and 7.9%

Answer 1

Answer:

b. 48.4% and 7.9%

Explanation:

Given:  Italian adult non- institutionalized population was 51.070 million.

             The labor force was 24.710 million.

             The number of people employed was 22.765 million.

Now, finding the Italian labor-force participation rate.

Labor-force participation rate= $\frac{Labor\ force}{Total\ population}$

⇒ Labor-force participation rate= $\frac{24.710}{51.070}\times 100$

∴ Labor-force participation rate= $48.38\% \approx 48.4\%$

Next finding unemployment rate.

Unemployment rate= $\frac{Total\ population- (Labor\ force+ people\ employed)}{Total\ population}$

⇒ Unemployment rate= $\frac{51.070- (24.710+22.765)}{51.070}$

⇒ Unemployment rate= $\frac{51.070- (47.475)}{51.070}$

Opening parenthesis.

⇒ Unemployment rate= $\frac{3.595}{51.0170} \times 100$

∴ Unemployment rate= $7.039\%$

Closest option available is $7.9\%$

Hence, labor force participation rate is 48.4% and unemployment rate is 7.9%