Question

1. If the number of employed persons in a country equals 65 million, the number of unemployed persons equals 15 million, and the number of persons over age 16 in the population equals 85 million, the unemployment rate equals ________.

A. 18.8%

B. 17.6%

C. 23.1%

2. Calculate the unemployment rate based on the following data for a country: Population: 200, Employed workers: 120, Labor Force: 125, Discouraged workers: 8.

A. 6.4%

B. 4.5%

C. 4.0%

3. Londonale has a working age population of 25 million. Of those, 15 million are employed and 3 million are unemployed. The participation rate is __________.

A. 72.0%.

B. 60%.

C. 83.3%.

Answer 1

Answer 1. (A) 18.8%

Answer 2. (C) 4.0%

Answer 3. (A) 72.0%

Explanation of answer 1. Labor force = Employed + Unemployed = 65 + 15 = 80.

Unemployment rate = (Unemployed/Labor force) * 100

= (15/80) * 100 = 18.75% which is equal to 18.8% when approximated.

Explanation of answer 2. Labor force = 125. Employed = 120. Therefore unemployed = 125-120 = 5.

Unemployment rate = (5/125) * 100 = 4.0%

Explanation of answer 3. Labor force = 15 + 3 = 18.

Participation rate = (Labor force/working age population) * 100

= (18/25) * 100 = 72.0%