Question

You are given the following information for a country: Participation rate is 75%, the unemployment rate is 10%, the employment rate is 67.5%, and the number of employed is 27 million. Based on this information, which of the following is correct?
O The number of unemployed is 3 million
O The unemployment rate is 12%.
O The size of the labor force is 40 million
o The working age population is 30 million

Answer 1

Answer:

O The size of the labor force is 40 million

Explanation:

Given:

Participation rate is 75%

Unemployment rate is 10%

Employment rate is 67.5%

The number of employed is 27 million.

As the employment rate is 67.5% of the size of the labor force which means that  27 million people are employed, we can say that number of people are employed equals to 67.5 percent of the total size of the labor force and we can write it numerically as:

27 = size of the labor force $\times$ 67.5%

27 =  size of the labor force$\times\frac{67.5}{100}$

27 = size of the labor force $\times0.675$

Dividing both side by 0.675

Size of the labor force = 40 million

Therefore, (O The size of the labor force is 40 million) option is correct.