Question

suppose an economy has 8.5 million unemployed workers, 131.2 million employed workers, and 69.3 million adults who do not participate in the labor force. the labor force participation rate for this economy is: 66.84%. 65.44%. 56.48%. 93.92%.

Answer 1

The labor force participation rate is calculated by dividing the total number of employed and unemployed workers by the total adult population and multiplying by 100 to get a percentage. In this case, the rate is 66.84%.

Step-by-step explanation:

The labor force participation rate is a key economic statistic that represents the proportion of adults who are either employed or unemployed and actively looking for work.

To calculate it, you add the number of employed workers to the number of unemployed workers, then divide this total by the sum of the employed, the unemployed, and the adults not participating in the labor force and multiply by 100 to convert it into a percentage.

Using the given data: 8.5 million unemployed workers and 131.2 million employed workers constitute the labor force, which totals to 139.7 million.

The entire adult population is the sum of those in the labor force and those not in the labor force, which is 139.7 million + 69.3 million = 209 million.

Therefore, the labor force participation rate is (139.7 million / 209 million) × 100, which equals 66.84%.