Question

Suppose the working-age population of a fictional economy falls into the following categories:

Answer 1

Answer:

The right solution is:

(a) 120

(b) 20%

Explanation:

Given that,

Full time employed,

= 75

Part time employed,

= 25

Total unemployed,

= 20

(a)

The total employed will be:

= $Full \ time + Part \ time$

= $75+25$

= $100$

Now,

Labor force will be:

= $Total \ employed+Total \ unemployed$

= $100+20$

= $120$

(b)

The unemployment rate will be:

= $\frac{Total \ unemployment}{Labor \ force}\times 100$

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

= $0.2\times 100$

= $20$ (%)