Question

A country has 50 million people, 30 million of whom are adults. Of the adults, 5 million are not interested in working, another 5 million are interested in working but have given up looking for work, and 5 million are still looking for work. Of those who do have jobs, 5 million are working part time but would like to work full time, and the remaining 10 million are working full time. What is this country's unemployment rate?a. 10% b. 16.7% c. 25% d. 40%

Answer 1

Answer:

The correct answer is option c.

Explanation:

The total population of a country is 50 million.  

The adult population is 30 million.  

The number of discouraged workers is 5 million.  

The number of unemployed workers is 5 million.  

The number of part-time workers is 5 million.  

The number of full-time workers is 10 million.  

The unemployment rate can be found by calculating the ratio of total unemployed workers to the total labor force. The total labor force includes both employed as well as unemployed workers.  

Total labor force

= Unemployed workers + Part-time workers + full-time workers

= 5 million + 5 million + 10 million

= 20 million  

Unemployment rate

= $\frac{Unemployed\ workers}{Total\ labor\ force}\times 100$

= $\frac{5}{20}\times 100$

= 25%