Question

If the empolyment -population ratio is 75 percent and the labor force participation rate is 80 percent, which of the following is true??

A.the number of employed>the number out of the labor force>the number of unemployed.

B. the number of employed>the size of the labor force>the number of unemployed.

C.the size of the labor force>the number of unemployed>the number of employed

Answer 1

ANSWER: lets assume that there are 100 people in the population for easier calculations.

Number of employed people = employment - poulation ratio * 100 = 75% * 100 = 75

labor force = labor force participation rate * 100 = 80% * 100 = 80

number of people out of labor force = total population - people in labor force = 100 - 80 = 20

number of unemployed = labor force - number of employed people = 80 - 75 = 5

A) 75 > 20 > 5

B) 75 > 80 > 5

C) 80 > 5 > 75

So out of three option is A is right and therefore it is the correct answer.