Question

Suppose the town of Boone has a total adult population of 60,000 people. Of those, 55,000 people are employed. There are 1,000 full-time students who are not employed or actively seeking work. The rest of the people are out of work but have been actively seeking work within the past four weeks.

What is the unemployment rate in Boone?

A) 1.67%

B) 3.33%

C) 5.00%

D) 6.67%

Answer 1

The unemployment rate in Boone is approximately 6.78%.

Step-by-step explanation:

To calculate the unemployment rate, we need to divide the number of unemployed individuals by the total labor force (employed + unemployed). In this case, we have a total adult population of 60,000. Of those, 55,000 are employed. We also know that there are 1,000 full-time students who are not employed or actively seeking work. Therefore, the number of unemployed individuals is 60,000 - 55,000 - 1,000 = 4,000.

The labor force is the sum of the employed and unemployed, so the labor force in this case is 55,000 + 4,000 = 59,000.

To calculate the unemployment rate, we divide the number of unemployed by the labor force and multiply by 100%: (4,000 / 59,000) * 100% = 6.78%.

Therefore, the unemployment rate in Boone is approximately 6.78%.