Question

Suppose the number of unemployed is 10 million, the number of employed is 200 million, and the nation's

adult population is 323 million. Given this information, the labor force participation rate is approximately
and the unemployment rate is approximately
A. 62 percent; 5.0 percent
B. 62 percent; 4.76 percent
C. 65 percent; 4.76 percent
D. 65 percent; 5.0 percent

Answer 1

Labor force participation rate = 65%

Unemployment rate = 4.76%

Step-by-step explanation:

Given the following :

number of unemployed = 10,000,000

number of employed = 200,000,000

Adult population = 323,000,000

Labor force participation :

The labor force participation rate is the ratio of the labor force to the adult population.

Labor force / adult population

Labor force = employed + unemployed

(Number of employed + number of unemployed) / number of adults

((200,000,000 + 10,000,000) / 323,000,000) × 100%

(210,000,000 / 323,000,000) × 100%

= 65.015% = 65%

Unemployment rate :

The ratio of unemployed citizens to the labor force.

Unemployment rate =(unemployed / labor force)

Labor force =( employed + unemployed)

Labor force = (200,000,000 + 10,000,000) = 210,000,000

Unemployed = 10,000,000

Unemployment rate:

(10,000,000 / 210,000,000) × 100%

0.0476 × 100% = 4.76%