Question

Suppose that an economy has 9 million people working full-time. It also has 1 million people who are actively seeking work but currently unemployed as well as 2 million discouraged workers who have given up looking for work and are currently unemployed. What is this economy’s unemployment rate?
a) 10 percent
b) 15 percent
c) 20 percent
d) 25 percent

Answer 1

Answer:

a) 10 percent

Explanation:

Unemployment is when workers are willing bro work and unable to find work.

Unemployment brate is a ratio of unemployed workers to the total civilian population.

We only consider workers that are willing to work as being unemployed

So willing workers that are unemployed= 1 million

Employed workers= 9 million

Civilian population = unemployed+ employed

Civilian population= 9+1= 10

Unemployment rate= Unemployed/ Civilian population

Unemployment rate= 1/10= 0.1= 10%