Question

Suppose 9 million people are unemployed, 201 million people are employed, 15 million are discouraged workers, and the adult population is 300 million. What is the labor force participation rate?

(A) 50%
(B) 60%
(C) 70%
(D) 75%
(E) 80%

Answer 1

The labor force participation rate is calculated by dividing the number of people in the labor force by the total adult population and then multiplying by 100, which in this case is 70% (C).

Step-by-step explanation:

The question seeks to calculate the labor force participation rate, which is a measure of the active portion of an economy's workforce. According to the given figures, 9 million people are unemployed and 201 million are employed. Discouraged workers, although not actively seeking employment, are not counted in the labor force. Thus, the labor force is the sum of the employed and the unemployed, giving us 210 million individuals. The labor force participation rate is calculated by dividing the number of people in the labor force by the adult population and then multiplying by 100.

The formula is as follows: (Labor Force / Adult Population) × 100 = (Employed + Unemployed) / Adult Population × 100 = (201 million + 9 million) / 300 million × 100 = 210 million / 300 million × 100 = 70%.