Question

The total population of an economy is 175 million, the labor force is 125 million, and the number of employed workers is 117 million. The unemployment rate for this economy is A. 3.3 percent. B. 5.8 percent. C. 6.4 percent. D. 7.8 percent.

Answer 1

Answer:

C. 6.4 percent.

Step-by-step explanation:

Given,

Labor force = 125 million,

The number of employed workers = 117 million,

So, the number of unemployed workers = Labor force - employed workers

= 125 million - 117 million

= 8 million,

Hence, the unemployment rate = $\frac{\text{Unemployed employees}}{\text{Labor force}}\times 100$

$=\frac{8}{125}\times 100$

$=\frac{8}{5}\times 4$

$=\frac{32}{5}$

= 6.4%

OPTION C is correct.