Question

Assume the following information about the economy:
Total population 800000
Total civilian noninstitutionalized adult population 600000
Employed population 324000
Unemployed population 36000
What is the unemployment rate in this economy?
4.5%
6%
10%
11.1%
None of the above

Answer 1

In the given question we have to calculate the unemployment rate.

The formula for unemployment rate is

Rate = (No. of unemployed ÷ Labor Force) * 100

For the calculation of unemployment rate we have to have the data of

a. No. of Unemployed persons

b. Total labor force

Labor force = Employed + Unemployed

Data given

Employed population 324000

Unemployed population 36000

Labor force= 324,000 +36,000 =360,000

Unemployment Rate = (No. of unemployed ÷ Labor Force) * 100

Unemployment Rate = (36000 ÷ 360,000) * 100

Unemployment Rate = 10%

Answer – 10%