Full Question:
If the number of unemployed persons in a country equals 24 million, the number of employed persons equals 8 million, and the number of persons over age 16 in the population equals 40 million, the unemployment rate equals:
a. 18%
b. 25%
c. 32%
d. 75%
Answer:
The correct answer is D) 75%
Step-by-step explanation:
Step 1:
The formula for unemployment rate is:
Unemployment Rate = (Number of Unemployed Persons / Labor Force) x 100
The labor force is the sum of unemployed and employed persons. By dividing the number of individuals whom are unemployed by labor force, you'll find the labor force participation, or unemployment rate.
Step 2
Therefore:
The labor force is arrived at by adding:
24 Million and 8 Million.
(24,000,000 + 8,000,000) = 32 Million
Step 3:
If number of unemployed persons is given as 24 Million, therefore
Unemployment rate = (24,000,000/32,000,000) x 100
Unemployment rate = 75%
Cheers!