Full Question:
If the number of unemployed persons in a country equals 24 million, the number of employed persons equals 8 million, and the number of persons over age 16 in the population equals 40 million, the unemployment rate equals:
a. 18%
b. 25%
c. 32%
d. 75%
Answer:
The correct answer is D) 75%
Explanation:
Step 1:
The formula for unemployment rate is:
Unemployment Rate = (Number of Unemployed Persons / Labor Force) x 100
<u>The labor force is the sum of unemployed and employed persons</u>. By dividing the number of individuals whom are unemployed by labor force, you'll find the labor force participation, or unemployment rate.
Step 2
Therefore:
The labor force is arrived at by adding:
24 Million and 8 Million.
(24,000,000 + 8,000,000) = 32 Million
Step 3:
If number of unemployed persons is given as 24 Million, therefore
Unemployment rate = (24,000,000/32,000,000) x 100
Unemployment rate = 75%
Cheers!
