Assume the share of whites in the labor force is 86% and their unemployment rate is 6%; the share of non-whites in the labor force is 14% with an unemployment rate of 11%.What is the overall unemployment rate?
A)6)3%
B)6)7%
C)7)4%
D)8)2%
E)8)5%

Question

Quizplus · Accepted Answer

The overall unemployment rate can be calculated by taking the weighted average of the unemployment rates for whites and non-whites based on their share in the labor force. For whites: 86% * 6% = 5.16%. For non-whites: 14% * 11% = 1.54%. Adding these together gives an overall unemployment rate of 6.7%, which rounds to 7% when considering options, but since the exact calculation is asked, the closest option is 6.7%.

Assume the Share of Whites in the Labor Force Is