Final answer:
The size of the labor force in the described economy is 400 people, which includes both the employed and unemployed individuals.
Therefore, the correct answer is option b. 400 people.
Step-by-step explanation:
The size of the labor force in an economy is the sum of all the employed and the unemployed persons. In the given scenario, there are 350 people employed and 50 people unemployed in an economy with 500 people. Thus, the size of the labor force would be the sum of those employed and unemployed, which equals 350 + 50 = 400 people.
The correct answer to the question is option b: 400 people. This figure represents the active participants in the economy who are either working or actively seeking employment.
The size of the labor force can be calculated by adding the number of employed and unemployed individuals. In this case, there are 350 employed people and 50 unemployed people, so the size of the labor force is 350 + 50 = 400 people. Therefore, the correct answer is option b. 400 people.