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Suppose the working-age population of a fictional economy falls into the following categories:

75 have full-time employment; 25 have part-time employment; 20 do not have employment, but are actively looking for employment; and 10 people are stay at home parents.
(1) What is the size of Labor force?
(2) What is the Unemployment rate?

1 Answer

6 votes

Answer:

The right solution is:

(a) 120

(b) 20%

Step-by-step explanation:

Given that,

Full time employed,

= 75

Part time employed,

= 25

Total unemployed,

= 20

(a)

The total employed will be:

=
Full \ time + Part \ time

=
75+25

=
100

Now,

Labor force will be:

=
Total \ employed+Total \ unemployed

=
100+20

=
120

(b)

The unemployment rate will be:

=
(Total \ unemployment)/(Labor \ force)* 100

=
(20)/(100)* 100

=
0.2* 100

=
20 (%)

User Leslie Davies
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