Question

Assume that the U.S. population is 300 million. If 70 million individuals are legally classified as unable to work (or are less than 16 years of age), 80 million are classified as unwilling to work, and 14 million are unemployed, what is the unemployment rate?
A) 10.3 percent
B) 4.7 percent
C) 6.7 percent
D) 6.4 percent
E) 9.3 percent

Answer 1

Answer: Option (E) is correct.

Explanation:

Given that,

U.S. population = 300 million

Individuals classified as unable to work =  70 million

Individuals classified as unwilling to work = 80 million

Unemployed = 14 million

Labor force = U.S. population - Individuals classified as unable to work  - Individuals classified as unwilling to work

                   = 300 million - 70 million - 80 million

                   = 150 million

Unemployment rate = $\frac{Unemployed}{Labor\ force} \times100$

                                 = $\frac{14}{150} \times100$

                                 = 9.3%