Question

Data for an economy shows that the unemployment rate is 10%, the participation rate 80 percent, and 200 million people 16 years or older are not in the labor force. how many people are in the working-age population in this economy?

Answer 1

Participation Rate is 80 Percent

20% are not in the Labor Force/Market.

So, the 200 Million people that is not participating Represents 20% of the working age population, or (0.20 * x ) equals 200,000,000, where X is the working age population. Then x equals 200,000,000/ 0.20 equals 1,000,000,000 or 1 Billion. So with the 200,000,000 of the 1,000,000,000 people being outside the labor force,

Therefore, The Answer ===> There must be 800 Million people that are in the Labor Force/Market.

Hope that helps!!!! -P- : )

Answer 2

200 m + Labor Force = Working Age Population
Since the participation rate is 80%,
so we know that Labor Force = 0.80 x Working Age Population
Thus, 200 m + 0.80 Working Age Population = Working Age Population
200 m = Working Age Population(1-0.80)
Solving for working age population,
we get Working Age Population = 200 m / 0.2 = 1000 m
The working age population is 1000 million.