Question

. In an economy of 100 people in the labor force, if 10 people are unemployed for 4 weeks during the year, and 30 people are unemployed for 8 weeks during the year, and the rest are employed continuously throughout the year, then the average duration of unemployment in this economy is:A. 4 weeks.B. 7 weeks.C. 8 weeks.D. 20 percent.

Answer 1

option (B) 7 weeks

Step-by-step explanation:

Data provided in the question:

10 people are unemployed for 4 weeks during the year

30 people are unemployed for 8 weeks during the year

Now,

The average duration of unemployment in economy

= ∑(Number of weeks × Number of unemployed) ÷ [Total number of unemployed]

= [( 4 × 10 ) + ( 8 × 30 ) ] ÷ [10 + 30 ]

= [40 + 240 ] ÷ 40

= 280 ÷ 40

= 7 weeks

Hence, option (B) 7 weeks